Reviewing Etsy (NYSE:ETSY) and Pick n Pay Stores (OTCMKTS:PKPYY)

Etsy (NYSE:ETSY) and Pick n Pay Stores (OTCMKTS:PKPYY) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Etsy and Pick n Pay Stores, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Etsy	1	18	13	2	2.47
Pick n Pay Stores	0	0	1	0	3.00

Etsy currently has a consensus price target of $84.68, suggesting a potential upside of 1.06%. Given Etsy’s higher possible upside, analysts plainly believe Etsy is more favorable than Pick n Pay Stores.

Insider and Institutional Ownership

99.5% of Etsy shares are owned by institutional investors. 2.5% of Etsy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Etsy and Pick n Pay Stores’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Etsy	7.32%	-34.18%	15.29%
Pick n Pay Stores	N/A	N/A	N/A

Valuation and Earnings

This table compares Etsy and Pick n Pay Stores”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Etsy	$2.88 billion	2.76	$162.98 million	$1.79	46.81
Pick n Pay Stores	N/A	N/A	N/A	$6.01	1.01

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

Summary

Etsy beats Pick n Pay Stores on 9 of the 12 factors compared between the two stocks.

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.

About Pick n Pay Stores

Pick n Pay Stores Limited, together with its subsidiaries, engages in the retail of food, grocery, clothing, liquor, and general merchandise products in South Africa and Rest of Africa. It owns and franchises hypermarkets, supermarkets, clothing stores, liquor stores, superstores, build stores, punch stores, and express stores under the Pick n Pay and Boxer brands. The company also offers its products through an online shopping platform www.pnp.co.za. Pick n Pay Stores Limited was founded in 1967 and is based in Cape Town, South Africa.