Comparing Etsy (NASDAQ:ETSY) & Expedia Group (NASDAQ:EXPE)

Expedia Group (NASDAQ:EXPE) and Etsy (NASDAQ:ETSY) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Institutional & Insider Ownership

90.8% of Expedia Group shares are held by institutional investors. Comparatively, 99.5% of Etsy shares are held by institutional investors. 9.1% of Expedia Group shares are held by insiders. Comparatively, 2.8% of Etsy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Expedia Group has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500. Comparatively, Etsy has a beta of 1.87, meaning that its share price is 87% more volatile than the S&P 500.

Profitability

This table compares Expedia Group and Etsy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Expedia Group	7.94%	56.25%	5.56%
Etsy	5.78%	-31.10%	11.14%

Valuation and Earnings

This table compares Expedia Group and Etsy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Expedia Group	$14.37 billion	2.22	$1.23 billion	$10.45	24.71
Etsy	$2.85 billion	2.05	$303.28 million	$1.42	41.72

Expedia Group has higher revenue and earnings than Etsy. Expedia Group is trading at a lower price-to-earnings ratio than Etsy, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Expedia Group and Etsy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Expedia Group	0	23	12	3	2.47
Etsy	3	19	7	1	2.20

Expedia Group currently has a consensus price target of $253.00, suggesting a potential downside of 2.03%. Etsy has a consensus price target of $64.24, suggesting a potential upside of 8.44%. Given Etsy’s higher probable upside, analysts clearly believe Etsy is more favorable than Expedia Group.

Summary

Expedia Group beats Etsy on 10 of the 15 factors compared between the two stocks.

About Expedia Group

Expedia Group, Inc. operates as an online travel company in the United States and internationally. The company operates through B2C, B2B, and trivago segments. Its B2C segment includes Brand Expedia, a full-service online travel brand offers various travel products and services; Hotels.com for lodging accommodations; Vrbo, an online marketplace for the alternative accommodations; Orbitz, Travelocity, Wotif Group, ebookers, CheapTickets, Hotwire.com and CarRentals.com. The company's B2B segment provides various travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management, and financial institutions who leverage its travel technology and tap into its diverse supply to augment their offerings and market Expedia Group rates and availabilities to its travelers. Its trivago segment, a hotel metasearch website, which send referrals to online travel companies and travel service providers from hotel metasearch websites. In addition, the company provides brand advertising through online and offline channels, loyalty programs, mobile apps, and search engine marketing, as well as metasearch, social media, direct and personalized traveler communications on its websites, and through direct e-mail communication with its travelers. The company was formerly known as Expedia, Inc. and changed its name to Expedia Group, Inc. in March 2018. Expedia Group, Inc. was founded in 1996 and is headquartered in Seattle, Washington.

About Etsy

Etsy, Inc., together with its subsidiaries, operates two-sided online marketplaces that connect buyers and sellers in the United States, the United Kingdom, Germany, Canada, Australia, and France. Its primary marketplace is Etsy.com that connects artisans and entrepreneurs with various consumers. The company also offers Reverb, a musical instrument marketplace; Depop, a fashion resale marketplace; and Elo7, a Brazil-based marketplace for handmade and unique items. In addition, it offers various seller services, including Etsy Payments, a payment processing service; Etsy Ads, an advertising platform; and Shipping Labels, which allows sellers in the United States, Canada, the United Kingdom, Australia, and India to purchase discounted shipping labels. Further, the company provides the Etsy Purchase Protection program that is designed to help buyers; the Etsy Share and Save program for sellers to save on Etsy fees for sales that drive to their Etsy shop from their own channels. Additionally, it offers educational resources comprising blog posts, video tutorials, Etsy Seller Handbook, Etsy.com online forums, and insights; Etsy Teams, a platform to build personal relationships with other Etsy sellers; and a Star Seller program. The company was formerly known as Indieco, Inc changed its name to Etsy, Inc. in June 2006. Etsy, Inc. was founded in 2005 and is headquartered in Brooklyn, New York.