Contrasting Waitr (NASDAQ:WTRH) & Etsy (NASDAQ:ETSY)


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Etsy (NASDAQ:ETSY) and Waitr (NASDAQ:WTRH) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Etsy 16.83% 46.30% 13.19%
Waitr -118.32% -95.68% -19.67%

Valuation & Earnings

This table compares Etsy and Waitr’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Etsy $818.38 million 31.90 $95.89 million $0.76 272.41
Waitr $191.68 million 1.98 -$291.31 million ($1.15) -2.97

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

Risk and Volatility

Etsy has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500. Comparatively, Waitr has a beta of -3.86, indicating that its share price is 486% less volatile than the S&P 500.

Insider & Institutional Ownership

75.3% of Etsy shares are held by institutional investors. Comparatively, 43.6% of Waitr shares are held by institutional investors. 3.8% of Etsy shares are held by company insiders. Comparatively, 16.6% of Waitr shares are held 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.

Analyst Recommendations

This is a breakdown of current recommendations for Etsy and Waitr, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Etsy 1 1 15 0 2.82
Waitr 0 1 3 0 2.75

Etsy presently has a consensus price target of $143.81, suggesting a potential downside of 30.54%. Waitr has a consensus price target of $6.33, suggesting a potential upside of 85.19%. Given Waitr’s higher possible upside, analysts plainly believe Waitr is more favorable than Etsy.

Summary

Etsy beats Waitr on 12 of the 14 factors compared between the two stocks.

Etsy Company Profile

Etsy, Inc. operates online market places for buyers and sellers primarily in the United States, the United Kingdom, Canada, Australia, France, and Germany. Its online market places include Etsy.com and Reverb.com. The company offers approximately 66 million items in its various retail categories to buyers. It also provides various seller services, including Etsy Payments, a payment processing service; Etsy Ads, an advertising platform; and Etsy Shipping Labels, which allows sellers in the United States, Canada, the United Kingdom, and Australia to purchase discounted shipping labels. In addition, the company offers 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; Targeted Offers, a sales, promotion, and media tool; educational resources, such as blog posts and video tutorials for sellers; Etsy Seller Handbook; and Etsy Teams, a platform to build personal relationships with other Etsy sellers. Etsy, Inc. was founded in 2005 and is headquartered in Brooklyn, New York.

Waitr Company Profile

Waitr Holdings Inc. provides online food ordering and delivery services in the United States. Its Waitr Platform and Bite Squad Platform facilitate ordering of food and beverages by diners from restaurant partners for pick-up and delivery through a network of drivers. As of December 31, 2019, the company had approximately 18,000 restaurant partners in 640 cities. The company was founded in 2013 and is headquartered in Lafayette, Louisiana.

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