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BABA vs. ETSY: A Head-to-Head Stock Comparison

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Here’s a clear look at BABA and ETSY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

BABA trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, ETSY is a standard domestic listing.

SymbolBABAETSY
Company NameAlibaba Group Holding LimitedEtsy, Inc.
CountryHong KongUnited States
GICS SectorConsumer DiscretionaryConsumer Discretionary
GICS IndustryBroadline RetailBroadline Retail
Market Capitalization287.31 billion USD6.44 billion USD
ExchangeNYSENasdaqGS
Listing DateSeptember 19, 2014April 16, 2015
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of BABA and ETSY by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

BABA vs. ETSY: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolBABAETSY
5-Day Price Return-2.28%-4.76%
13-Week Price Return-2.82%38.12%
26-Week Price Return-0.04%17.43%
52-Week Price Return42.40%18.37%
Month-to-Date Return-0.95%11.48%
Year-to-Date Return40.92%22.82%
10-Day Avg. Volume11.26M5.14M
3-Month Avg. Volume14.09M5.48M
3-Month Volatility33.97%49.91%
Beta0.111.84

Profitability

Return on Equity (TTM)

BABA

13.27%

Broadline Retail Industry

Max
49.17%
Q3
28.98%
Median
19.22%
Q1
10.86%
Min
-11.14%

BABA’s Return on Equity of 13.27% is on par with the norm for the Broadline Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.

ETSY

67.87%

Broadline Retail Industry

Max
49.17%
Q3
28.98%
Median
19.22%
Q1
10.86%
Min
-11.14%

ETSY’s Return on Equity of 67.87% is exceptionally high, placing it well beyond the typical range for the Broadline Retail industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

BABA vs. ETSY: A comparison of their Return on Equity (TTM) against the Broadline Retail industry benchmark.

Net Profit Margin (TTM)

BABA

12.99%

Broadline Retail Industry

Max
19.78%
Q3
11.90%
Median
8.63%
Q1
5.21%
Min
0.82%

A Net Profit Margin of 12.99% places BABA in the upper quartile for the Broadline Retail industry, signifying strong profitability and more effective cost management than most of its peers.

ETSY

5.78%

Broadline Retail Industry

Max
19.78%
Q3
11.90%
Median
8.63%
Q1
5.21%
Min
0.82%

ETSY’s Net Profit Margin of 5.78% is aligned with the median group of its peers in the Broadline Retail industry. This indicates its ability to convert revenue into profit is typical for the sector.

BABA vs. ETSY: A comparison of their Net Profit Margin (TTM) against the Broadline Retail industry benchmark.

Operating Profit Margin (TTM)

BABA

14.14%

Broadline Retail Industry

Max
27.23%
Q3
15.96%
Median
11.13%
Q1
8.31%
Min
1.77%

BABA’s Operating Profit Margin of 14.14% is around the midpoint for the Broadline Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.

ETSY

10.25%

Broadline Retail Industry

Max
27.23%
Q3
15.96%
Median
11.13%
Q1
8.31%
Min
1.77%

ETSY’s Operating Profit Margin of 10.25% is around the midpoint for the Broadline Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.

BABA vs. ETSY: A comparison of their Operating Profit Margin (TTM) against the Broadline Retail industry benchmark.

Profitability at a Glance

SymbolBABAETSY
Return on Equity (TTM)13.27%67.87%
Return on Assets (TTM)7.19%6.88%
Net Profit Margin (TTM)12.99%5.78%
Operating Profit Margin (TTM)14.14%10.25%
Gross Profit Margin (TTM)39.95%72.20%

Financial Strength

Current Ratio (MRQ)

BABA

1.55

Broadline Retail Industry

Max
3.54
Q3
2.42
Median
1.49
Q1
1.22
Min
0.67

BABA’s Current Ratio of 1.55 aligns with the median group of the Broadline Retail industry, indicating that its short-term liquidity is in line with its sector peers.

ETSY

3.39

Broadline Retail Industry

Max
3.54
Q3
2.42
Median
1.49
Q1
1.22
Min
0.67

ETSY’s Current Ratio of 3.39 is in the upper quartile for the Broadline Retail industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

BABA vs. ETSY: A comparison of their Current Ratio (MRQ) against the Broadline Retail industry benchmark.

Debt-to-Equity Ratio (MRQ)

BABA

0.23

Broadline Retail Industry

Max
2.14
Q3
1.34
Median
0.63
Q1
0.27
Min
0.00

Falling into the lower quartile for the Broadline Retail industry, BABA’s Debt-to-Equity Ratio of 0.23 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

ETSY

4.11

Broadline Retail Industry

Max
2.14
Q3
1.34
Median
0.63
Q1
0.27
Min
0.00

With a Debt-to-Equity Ratio of 4.11, ETSY operates with exceptionally high leverage compared to the Broadline Retail industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

BABA vs. ETSY: A comparison of their Debt-to-Equity Ratio (MRQ) against the Broadline Retail industry benchmark.

Interest Coverage Ratio (TTM)

BABA

9.56

Broadline Retail Industry

Max
37.34
Q3
20.63
Median
11.28
Q1
4.22
Min
-19.29

BABA’s Interest Coverage Ratio of 9.56 is positioned comfortably within the norm for the Broadline Retail industry, indicating a standard and healthy capacity to cover its interest payments.

ETSY

-193.71

Broadline Retail Industry

Max
37.34
Q3
20.63
Median
11.28
Q1
4.22
Min
-19.29

ETSY has a negative Interest Coverage Ratio of -193.71. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

BABA vs. ETSY: A comparison of their Interest Coverage Ratio (TTM) against the Broadline Retail industry benchmark.

Financial Strength at a Glance

SymbolBABAETSY
Current Ratio (MRQ)1.553.39
Quick Ratio (MRQ)1.083.21
Debt-to-Equity Ratio (MRQ)0.234.11
Interest Coverage Ratio (TTM)9.56-193.71

Growth

Revenue Growth

BABA vs. ETSY: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

BABA vs. ETSY: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

BABA

2.79%

Broadline Retail Industry

Max
5.46%
Q3
2.38%
Median
0.43%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 2.79%, BABA offers a more attractive income stream than most of its peers in the Broadline Retail industry, signaling a strong commitment to shareholder returns.

ETSY

0.00%

Broadline Retail Industry

Max
5.46%
Q3
2.38%
Median
0.43%
Q1
0.00%
Min
0.00%

ETSY currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

BABA vs. ETSY: A comparison of their Dividend Yield (TTM) against the Broadline Retail industry benchmark.

Dividend Payout Ratio (TTM)

BABA

103.01%

Broadline Retail Industry

Max
131.17%
Q3
63.48%
Median
29.43%
Q1
0.00%
Min
0.00%

BABA’s Dividend Payout Ratio of 103.01% is in the upper quartile for the Broadline Retail industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

ETSY

0.00%

Broadline Retail Industry

Max
131.17%
Q3
63.48%
Median
29.43%
Q1
0.00%
Min
0.00%

ETSY has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

BABA vs. ETSY: A comparison of their Dividend Payout Ratio (TTM) against the Broadline Retail industry benchmark.

Dividend at a Glance

SymbolBABAETSY
Dividend Yield (TTM)2.79%0.00%
Dividend Payout Ratio (TTM)103.01%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

BABA

16.04

Broadline Retail Industry

Max
66.12
Q3
35.17
Median
16.29
Q1
10.47
Min
5.94

BABA’s P/E Ratio of 16.04 is within the middle range for the Broadline Retail industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ETSY

39.45

Broadline Retail Industry

Max
66.12
Q3
35.17
Median
16.29
Q1
10.47
Min
5.94

A P/E Ratio of 39.45 places ETSY in the upper quartile for the Broadline Retail industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

BABA vs. ETSY: A comparison of their Price-to-Earnings Ratio (TTM) against the Broadline Retail industry benchmark.

Price-to-Sales Ratio (TTM)

BABA

2.08

Broadline Retail Industry

Max
5.40
Q3
3.33
Median
2.04
Q1
0.80
Min
0.16

BABA’s P/S Ratio of 2.08 aligns with the market consensus for the Broadline Retail industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ETSY

2.28

Broadline Retail Industry

Max
5.40
Q3
3.33
Median
2.04
Q1
0.80
Min
0.16

ETSY’s P/S Ratio of 2.28 aligns with the market consensus for the Broadline Retail industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

BABA vs. ETSY: A comparison of their Price-to-Sales Ratio (TTM) against the Broadline Retail industry benchmark.

Price-to-Book Ratio (MRQ)

BABA

2.23

Broadline Retail Industry

Max
9.06
Q3
5.22
Median
3.48
Q1
1.90
Min
0.74

BABA’s P/B Ratio of 2.23 is within the conventional range for the Broadline Retail industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

ETSY

16.01

Broadline Retail Industry

Max
9.06
Q3
5.22
Median
3.48
Q1
1.90
Min
0.74

At 16.01, ETSY’s P/B Ratio is at an extreme premium to the Broadline Retail industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

BABA vs. ETSY: A comparison of their Price-to-Book Ratio (MRQ) against the Broadline Retail industry benchmark.

Valuation at a Glance

SymbolBABAETSY
Price-to-Earnings Ratio (TTM)16.0439.45
Price-to-Sales Ratio (TTM)2.082.28
Price-to-Book Ratio (MRQ)2.2316.01
Price-to-Free Cash Flow Ratio (TTM)26.7810.19