Head-To-Head Analysis: Etsy (NYSE:ETSY) vs. TIC Solutions (NYSE:TIC)

Etsy (NYSE:ETSY) and TIC Solutions (NYSE:TIC) are both mid-cap services companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Volatility and Risk

Etsy has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500. Comparatively, TIC Solutions has a beta of 3.21, suggesting that its share price is 221% more volatile than the S&P 500.

Valuation & Earnings

This table compares Etsy and TIC Solutions”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Etsy	$2.88 billion	2.08	$162.98 million	$2.40	26.32
TIC Solutions	$1.53 billion	1.36	-$87.12 million	($0.54)	-17.37

Etsy has higher revenue and earnings than TIC Solutions. TIC Solutions 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

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

Analyst Recommendations

This is a summary of current ratings and target prices for Etsy and TIC Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Etsy	2	19	7	1	2.24
TIC Solutions	3	2	2	0	1.86

Etsy presently has a consensus target price of $70.09, suggesting a potential upside of 10.97%. TIC Solutions has a consensus target price of $11.00, suggesting a potential upside of 17.25%. Given TIC Solutions’ higher probable upside, analysts clearly believe TIC Solutions is more favorable than Etsy.

Profitability

This table compares Etsy and TIC Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Etsy	9.94%	-28.60%	11.93%
TIC Solutions	-5.69%	-4.37%	-2.16%

Summary

Etsy beats TIC Solutions 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 TIC Solutions

Acuren Corporation provides critical asset integrity services in North America. Its activities include various nondestructive testing (NDT) solutions, such as radiography, ultrasonic testing, magnetic particle inspection, penetrant testing, and visual inspection. Its NDT activities include inspection and evaluation of industrial equipment through various technology-enabled methods to ensure asset integrity, avoid accidents, and comply with regulatory requirements without destroying the asset or component. The company also provides market rope access technician solutions, including inspection and testing, as well as insulation, coatings and blasting, welding, pipe fitting, hoisting and rigging, and electrical services. In addition, its TIC service includes support from consulting engineers with in-lab destructive testing capabilities. The company provides support failure investigation, material selection, corrosion engineering, welding engineering, fracture mechanics, destructive testing, and chemical analysis. It serves a range of industrial markets, primarily chemical, pipeline, refinery, power generation, oilsands, automotive, aerospace, mining, manufacturing, renewable energy, and pulp and paper. The company was founded in 1991 and is headquartered in Tomball, Texas.