Analyzing Etsy (NASDAQ:ETSY) and QVC Group (NASDAQ:QVCGA)

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

Analyst Recommendations

This is a summary of recent ratings for Etsy and QVC Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Etsy	3	19	7	1	2.20
QVC Group	1	0	0	0	1.00

Etsy presently has a consensus target price of $64.24, suggesting a potential upside of 8.44%. Given Etsy’s stronger consensus rating and higher probable upside, equities analysts clearly believe Etsy is more favorable than QVC Group.

Volatility and Risk

Etsy has a beta of 1.87, meaning that its share price is 87% more volatile than the S&P 500. Comparatively, QVC Group has a beta of 3.04, meaning that its share price is 204% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Etsy	5.78%	-31.10%	11.14%
QVC Group	-37.71%	N/A	-13.21%

Insider & Institutional Ownership

99.5% of Etsy shares are owned by institutional investors. Comparatively, 64.1% of QVC Group shares are owned by institutional investors. 2.8% of Etsy shares are owned by company insiders. Comparatively, 12.4% of QVC Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Etsy and QVC Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Etsy	$2.85 billion	2.05	$303.28 million	$1.42	41.72
QVC Group	$9.63 billion	0.01	-$1.29 billion	($460.35)	-0.02

Etsy has higher earnings, but lower revenue than QVC Group. QVC Group 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 QVC Group on 11 of the 15 factors compared between the two stocks.

About Etsy

Etsy, Inc., together with its subsidiaries, operates two-sided online marketplaces that connect buyers and sellers in the United States, the United Kingdom, Germany, Canada, Australia, and France. 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 the Etsy Purchase Protection program that is designed to help buyers; the Etsy Share and Save program for sellers to save on Etsy fees for sales that drive to their Etsy shop from their own channels. Additionally, it offers 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. 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 QVC Group

QVC Group, Inc. engages in the business of video and online commerce industries. It operates through the following segments: QxH, QVC International and CBI. The QxH segment markets and sells a wide variety of consumer products in the U.S., primarily by means of its televised shopping programs and via the Internet through their websites and mobile applications. The QVC International segment markets and sells a wide variety of consumer products in several foreign countries, primarily by means of its televised shopping programs and via the Internet through its international websites and mobile applications. The CBI segment consists of a portfolio of aspirational home and apparel brands in the U.S. that sell merchandise through brick-and-mortar retail locations as well as via the Internet through their websites. The company was founded on March 28, 1991 and is headquartered in Englewood, CO.