Booking (BKNG) and Etsy (ETSY) Head to Head Analysis

Booking (NASDAQ:BKNG) and Etsy (NASDAQ:ETSY) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Booking 20.07% 24.74% 11.02%
Etsy 17.52% 13.23% 6.81%

Institutional & Insider Ownership

92.9% of Booking shares are owned by institutional investors. Comparatively, 86.7% of Etsy shares are owned by institutional investors. 0.2% of Booking shares are owned by company insiders. Comparatively, 2.8% of Etsy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Booking and Etsy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Booking $12.68 billion 7.37 $2.34 billion $77.03 25.54
Etsy $441.23 million 13.81 $81.80 million $0.38 133.95

Booking has higher revenue and earnings than Etsy. Booking 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

Booking has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Etsy has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Booking and Etsy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Booking 0 11 14 0 2.56
Etsy 1 4 6 0 2.45

Booking presently has a consensus target price of $2,158.76, indicating a potential upside of 9.72%. Etsy has a consensus target price of $43.95, indicating a potential downside of 13.65%. Given Booking’s stronger consensus rating and higher possible upside, equities analysts plainly believe Booking is more favorable than Etsy.

Summary

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

About Booking

Booking Holdings Inc, formerly The Priceline Group Inc., is a provider of travel and restaurant online reservation and related services. The Company, through its online travel companies (OTCs), connects consumers wishing to make travel reservations with providers of travel services across the world. It offers consumers an array of accommodation reservations (including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties) through its Booking.com, priceline.com and agoda.com brands. Its other brands include KAYAK, Rentalcars.com and OpenTable, Inc. (OpenTable). As of December 31, 2016, Booking.com offered accommodation reservation services for over 1,115,000 properties in over 220 countries and territories on its various Websites and in over 40 languages, which included over 568,000 vacation rental properties (updated property counts were available on the Booking.com Website).

About Etsy

Etsy, Inc. operates Etsy.com, a commerce platform to make, sell, and buy goods online and offline primarily in the United States, United Kingdom, Canada, Australia, France, and Germany. It provides various seller services and tools that are designed to help entrepreneurs for starting, managing, and scaling their businesses. The company offers approximately 50 million items across approximately 50 retail categories to buyers. It also provides various seller services, including Etsy payments, a payment processing service; promoted listings, an on-site advertising service that allows sellers to pay for prominent placement of their listings in search results; shipping labels, which allows sellers in the United States and Canada to purchase discounted shipping labels; and pattern, a service that allows sellers to build custom Websites, as well as offers seller tools and education resources to manage the administrative side of their businesses. Etsy, Inc. was founded in 2005 and is headquartered in Brooklyn, New York.

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