Financial Review: Etsy (NYSE:ETSY) vs. Savers Value Village (NYSE:SVV)

Savers Value Village (NYSE:SVV) and Etsy (NYSE:ETSY) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Analyst Ratings

This is a breakdown of current ratings for Savers Value Village and Etsy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Savers Value Village	1	4	4	0	2.33
Etsy	1	16	15	1	2.48

Savers Value Village presently has a consensus price target of $13.29, suggesting a potential upside of 47.37%. Etsy has a consensus price target of $94.07, suggesting a potential upside of 3.03%. Given Savers Value Village’s higher probable upside, equities analysts clearly believe Savers Value Village is more favorable than Etsy.

Earnings & Valuation

This table compares Savers Value Village and Etsy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Savers Value Village	$1.68 billion	0.83	$22.64 million	$0.16	56.34
Etsy	$2.88 billion	2.73	$162.98 million	$8.47	10.78

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

Risk and Volatility

Savers Value Village has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Etsy has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500.

Insider & Institutional Ownership

98.8% of Savers Value Village shares are owned by institutional investors. Comparatively, 99.5% of Etsy shares are owned by institutional investors. 3.5% of Savers Value Village shares are owned by insiders. Comparatively, 2.5% of Etsy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Savers Value Village and Etsy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Savers Value Village	1.42%	14.58%	3.12%
Etsy	34.36%	-43.65%	16.92%

Summary

Etsy beats Savers Value Village on 11 of the 15 factors compared between the two stocks.

About Savers Value Village

Savers Value Village, Inc. sells second-hand merchandise in retail stores in the United States, Canada, and Australia. It operates stores under the Savers, Value Village, Value Village Boutique, Village des Valeurs, Unique, and 2nd Avenue brands. The company purchases secondhand textiles, including clothing, bedding, and bath items; shoes; accessories; housewares; books; and other goods from non-profit partners and then processes, selects, prices, merchandises, and sells them in its stores. It serves retail and wholesale customers. The company was formerly known as S-Evergreen Holding LLC and changed its name to Savers Value Village, Inc. in January 2022. Savers Value Village, Inc. was founded in 1954 and is based in Bellevue, Washington.

About Etsy

Etsy, Inc. operates two-sided online marketplaces that connect buyers and sellers primarily in the United States, the United Kingdom, Germany, Canada, Australia, France, and India. 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 various seller tools, including Shop Manager dashboard, a centralized hub for Etsy sellers to track orders, manage inventory, view metrics and statistics, and have conversations with their customers; and Sell on Etsy, an application to enable enhanced onboarding and video uploading. Additionally, it offers Etsy seller analytics pages that provides insights regarding traffic acquisition for their shops; Targeted Offers, a sales and promotions tool, and social media tool; and accounting and bookkeeping services. The company also provides 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. As of December 31, 2021, it connected a total of 7.5 million active sellers to 96.3 million active buyers; and had 120 million items for sale. 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.