Analyzing Etsy (ETSY) and Roundy's (RNDY)
Roundy's (NYSE: RNDY) and Etsy (NASDAQ:ETSY) are both cyclical consumer goods & services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.
This table compares Roundy's and Etsy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Roundy's has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Etsy has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.
Valuation & Earnings
This table compares Roundy's and Etsy’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Etsy||$364.97 million||5.49||-$29.90 million||$0.12||137.17|
Roundy's has higher earnings, but lower revenue than Etsy. Roundy's is trading at a lower price-to-earnings ratio than Etsy, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
74.4% of Etsy shares are owned by institutional investors. 4.0% of Etsy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent ratings for Roundy's and Etsy, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Etsy has a consensus price target of $15.33, indicating a potential downside of 6.84%. Given Etsy’s higher probable upside, analysts plainly believe Etsy is more favorable than Roundy's.
Etsy beats Roundy's on 10 of the 10 factors compared between the two stocks.
Roundy's Company Profile
Roundy’s, Inc. is a Midwest supermarket chain. The Company offers a range of products, stocking around 45,000 different items. Its stores sell nationally advertised brands, as well as products under the Roundy’s own-brand labels. Its products are classified into non-perishable, perishable and non-food. Non-perishable food categories include grocery, frozen and dairy products. Perishable categories include produce, meat, seafood, deli, bakery and floral. Non-food includes general merchandise, health and beauty care, pharmacy and alcohol. It classifies products into primary categories, including grocery, frozen and dairy; produce; meat and seafood; bakery; deli, cheese and prepared foods; floral; general merchandise; alcohol; pharmacy; and health and beauty care. Its retail operations consists of around 148 grocery stores, with 119 stores in Wisconsin operating under the Pick ‘n Save, Copps and Metro Market banners and 29 stores in Illinois operating under the Mariano’s banner.
Etsy Company Profile
Etsy, Inc. (Etsy) operates a marketplace where people around the world connect, both online and offline, to make, sell and buy goods. The Company offers a range of seller services and tools that help entrepreneurs start, grow and manage their businesses. The Company’s community includes Etsy sellers, Etsy buyers, Etsy employees, its partners and investors. As of December 31, 2016, its platform connected 1.7 million active Etsy sellers and 28.6 million active Etsy buyers. Etsy sellers join its community to participate in its markets to express their creativity. Etsy sellers range from hobbyists to professional merchants, and have a range of personal and professional goals. Its supports a group of artists, makers, designers and collectors from around the world. Its services platform includes seller services, seller tools and education. The Company’s seller services include Direct Checkout, Promoted Listings, Shipping Labels and Pattern by Etsy.
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