Etsy, Inc. (ETSY) vs Wayfair Inc. (W)

Etsy, Inc. and Wayfair Inc. are both Internet Retail companies. Wayfair Inc. is the larger, with a market value of $13.4B against $6.4B — 2.1× the size. Wayfair Inc. has negative trailing earnings, so its P/E is not meaningful; Etsy, Inc. trades at 32.3×. Wayfair Inc. grew revenue faster over the last twelve months: 7.46% against 6.74%. Etsy, Inc. has the higher net margin (7.11% vs −2.49%) and the higher return on invested capital (47.1% vs 0.00%). Across the 20 metrics below, Etsy, Inc. leads on 14 and Wayfair Inc. on 6.

Valuation

Metric ETSY W Internet Retail median
P/E 32.28 n/m 22.73
P/S 2.20 1.01 0.64
P/B n/m n/m 1.65
Price to free cash flow 10.64 23.08 14.11
EV/EBITDA 16.12 29.25 15.68
EV/Sales 2.86 1.13 0.76
Earnings yield 3.10% (2.50%) (0.11%)
Free cash flow yield 9.40% 4.33% 0.00%

Profitability

Metric ETSY W Internet Retail median
Gross margin 71.40% 30.05% 43.51%
Operating margin 14.31% 1.67% 0.08%
Net margin 7.11% (2.49%) 0.56%
Free cash flow margin 20.86% 4.36% 0.00%
Return on equity (16.61%) 11.66% 0.00%
Return on assets 8.38% (10.26%) 0.00%
Return on invested capital 47.13% 0.00% 0.00%

Growth

Metric ETSY W Internet Retail median
Revenue growth (TTM) 6.74% 7.46% 10.60%
EPS growth (last fiscal year) (40.85%) 39.15% —
Revenue growth, 5-year CAGR 10.81% (2.51%) 10.81%
Net income growth, 5-year CAGR (14.14%) 0.00% 0.00%

Health

Metric ETSY W Internet Retail median
Debt to equity (2.20) (1.00) 0.13
Current ratio 1.48 0.74 1.49
Net debt to EBITDA 3.96 5.11 (0.25)

Dividend

Metric ETSY W Internet Retail median
Dividend yield — — —
Payout ratio 0.00 0.00 0.00

Size

Metric ETSY W Internet Retail median
Market cap 6.35b 13.38b 443.85m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack