Head to Head Contrast: Savers Value Village (NYSE:SVV) & Etsy (NYSE:ETSY)

Etsy (NYSE:ETSY) and Savers Value Village (NYSE:SVV) 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.

Insider and Institutional Ownership

99.5% of Etsy shares are owned by institutional investors. Comparatively, 98.8% of Savers Value Village shares are owned by institutional investors. 2.5% of Etsy shares are owned by company insiders. Comparatively, 3.5% of Savers Value Village 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.

Risk and Volatility

Etsy has a beta of 1.86, suggesting that its share price is 86% more volatile than the S&P 500. Comparatively, Savers Value Village has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Etsy	$2.88 billion	3.04	$162.98 million	$8.47	10.92
Savers Value Village	$1.68 billion	0.85	$22.64 million	$0.16	57.93

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.

Profitability

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

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

Analyst Ratings

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

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

Etsy currently has a consensus price target of $94.07, suggesting a potential upside of 1.68%. Savers Value Village has a consensus price target of $13.29, suggesting a potential upside of 43.33%. Given Savers Value Village’s higher possible upside, analysts plainly believe Savers Value Village is more favorable than Etsy.

Summary

Etsy beats Savers Value Village on 12 of the 15 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 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.