Probability of Doubling the Priority: Amazon vs. Etsy
When it comes to which company is more likely to double its stock price first, the clear winner is Amazon. Here’s a look at the two companies from different angles.
Investors are always looking for a future big event. The company will double its stock price in a short period of time and make them a fortune. In the past few years, two companies have emerged as the leaders in their respective industries: Amazon and Etsy.
Both companies have been growing at an incredible pace, and their stocks have been on a tear. But which one is more likely to double its stock price first?
To answer that question, we need to look at the two companies from different angles.
Fundamentals
From a fundamental standpoint, Amazon is the clear winner. The company is growing at an incredible pace and is profitable. Etsy, on the other hand, is not profitable and is growing at a slower pace.
Amazon’s revenues have grown from $136 billion in 2016 to $280 billion in 2022. An annual growth rate, compounded, of 27%. Etsy’s revenues have grown from $2.8 billion in 2016 to $8.5 billion in 2022. That’s a CAGR of 43%.
So, Etsy is growing faster than Amazon. But Amazon is much larger and is profitable. Amazon’s net income was $11.2 billion in 2022. Etsy’s net loss was $321 million in 2022.
From a fundamental standpoint, Amazon is the clear winner. The company is growing at a fast pace and is profitable. Etsy is growing at a faster pace, but it is not profitable.
Valuation
From a valuation standpoint, Amazon is also the clear winner. The company’s stock is trading at a multiple of 36 times earnings. Etsy’s stock is trading at a multiple of 16 times sales.
So, Amazon is more expensive than Etsy. But Amazon is also growing faster and is profitable. When you compare the two companies on a valuation basis, Amazon is the clear winner.
Growth
From a growth standpoint, Etsy is the clear winner. The company is growing at a faster pace than Amazon. Etsy’s revenues have grown from $2.8 billion in 2016 to $8.5 billion in 2022. That’s a CAGR of 43%. Amazon’s revenues have grown from $136 billion in 2016 to $280 billion in 2022. That’s a CAGR of 27%.
So, Etsy is growing faster than Amazon. But Amazon is much larger and is profitable. Amazon’s net income was $11.2 billion in 2022. Etsy’s net loss was $321 million in 2022.
From a growth standpoint, Etsy is the clear winner. The company is growing at a faster pace than Amazon. But Amazon is much larger and is profitable.
Risk
From a risk standpoint, Amazon is the clear winner. The company is much larger and is profitable. Etsy is growing at a faster pace, but it is not profitable.
Amazon’s stock is trading at a multiple of 36 times earnings. Etsy’s stock is trading at a multiple of 16 times sales. So, Amazon is more expensive than Etsy. But, Amazon is also growing faster and is profitable. When you compare the two companies on a risk basis, Amazon is the clear winner.
From a fundamental standpoint, Amazon is the clear winner. The company is growing at an incredible pace and is profitable. Etsy, on the other hand, is not profitable and is growing at a slower pace.
From a valuation standpoint, Amazon is also the clear winner. The company’s stock is trading at a multiple of 36 times earnings. Etsy’s stock is trading at a multiple of 16 times sales.
From a growth standpoint, Etsy is the clear winner. The company is growing at a faster pace than Amazon.
From a risk standpoint, Amazon is the clear winner. The company is much larger and is profitable. Etsy is growing at a faster pace, but it is not profitable.
When you compare the two companies from different angles, Amazon is the clear winner. The company is more likely to double its stock price first.
