Financial Comparison: Paymentus (NYSE:PAY) & Etsy (NASDAQ:ETSY)

Etsy (NASDAQ:ETSY) and Paymentus (NYSE:PAY) are both mid-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

Volatility & Risk

Etsy has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500. Comparatively, Paymentus has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Institutional and Insider Ownership

99.5% of Etsy shares are owned by institutional investors. Comparatively, 12.6% of Paymentus shares are owned by institutional investors. 2.6% of Etsy shares are owned by insiders. Comparatively, 87.8% of Paymentus shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Etsy	10.36%	-51.94%	12.29%
Paymentus	4.63%	9.33%	7.96%

Earnings & Valuation

This table compares Etsy and Paymentus”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Etsy	$2.77 billion	2.06	$307.57 million	$2.19	22.27
Paymentus	$614.49 million	4.94	$22.32 million	$0.25	97.48

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

Analyst Ratings

This is a summary of current ratings for Etsy and Paymentus, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Etsy	4	12	7	1	2.21
Paymentus	0	6	2	2	2.60

Etsy currently has a consensus price target of $66.48, indicating a potential upside of 36.31%. Paymentus has a consensus price target of $20.31, indicating a potential downside of 16.65%. Given Etsy’s higher probable upside, equities research analysts clearly believe Etsy is more favorable than Paymentus.

Summary

Etsy beats Paymentus on 9 of the 15 factors compared between the two stocks.

About Etsy

Etsy, Inc., together with its subsidiaries, operates two-sided online marketplaces that connect buyers and sellers in the United States, the United Kingdom, Germany, Canada, Australia, and France. 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 the Etsy Purchase Protection program that is designed to help buyers; the Etsy Share and Save program for sellers to save on Etsy fees for sales that drive to their Etsy shop from their own channels. Additionally, it offers 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. 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 Paymentus

Paymentus Holdings, Inc. provides cloud-based bill payment technology and solutions in the United States and internationally. The company offers electronic bill presentment and payment services, enterprise customer communication, and self-service revenue management to billers through a software-as-a-service technology platform. Its platform's payment processing includes credit cards, debit cards, eChecks, and digital wallets. It serves utility, financial service, government, insurance, telecommunication, real estate management, education, consumer finance, healthcare, and small business industries. The company was founded in 2004 and is headquartered in Charlotte, North Carolina.