Reviewing Etsy (NASDAQ:ETSY) and EVO Payments (NASDAQ:EVOP)

Etsy (NASDAQ:ETSY) and EVO Payments (NASDAQ:EVOP) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares Etsy and EVO Payments’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Etsy 22.45% 73.54% 18.54%
EVO Payments 2.00% -8.26% 4.16%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Etsy and EVO Payments, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Etsy 0 2 16 0 2.89
EVO Payments 0 1 2 0 2.67

Etsy presently has a consensus target price of $225.25, indicating a potential upside of 2.11%. EVO Payments has a consensus target price of $32.67, indicating a potential upside of 43.84%. Given EVO Payments’ higher probable upside, analysts plainly believe EVO Payments is more favorable than Etsy.

Institutional and Insider Ownership

87.3% of Etsy shares are owned by institutional investors. Comparatively, 56.9% of EVO Payments shares are owned by institutional investors. 3.8% of Etsy shares are owned by company insiders. Comparatively, 42.6% of EVO Payments shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Etsy and EVO Payments’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Etsy $1.73 billion 16.18 $349.25 million $2.69 82.00
EVO Payments $439.10 million 4.31 -$1.68 million $0.64 35.48

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

Volatility & Risk

Etsy has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500. Comparatively, EVO Payments has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500.

Summary

Etsy beats EVO Payments on 11 of the 14 factors compared between the two stocks.

Etsy Company Profile

Etsy, Inc. engages in the operation of online marketplace. It offers handmade products such as shoes, clothing, bags, and accessories. It operates through the following geographical segments: United States, United Kingdom, and Other International. The company was founded by Haim Schoppik, Robert Kalin, Jared Tarbell, and Christopher Maguires in 2005 and is headquartered in New York, NY.

EVO Payments Company Profile

EVO Payments, Inc. is a holding company, which provides payments technology and services. It offers payment and commerce solutions. The firm operates through the Americas and Europe geographical segments. The Americas segment is composed of the United States, Canada, and Mexico. The Europe segment includes operations in the Czech Republic, Germany, Ireland, Poland, Spain, and the United Kingdom, as well as supporting merchants in France, Austria, Italy, the Nordics, and other Central and Eastern European. The company was founded by Rafik R. Sidhom in 1989 and is headquartered in Atlanta, GA.

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