Etsy (NASDAQ:ETSY) and Quhuo (NASDAQ:QH) Financial Contrast

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Etsy	4	14	7	1	2.19
Quhuo	0	0	0	0	0.00

Etsy currently has a consensus target price of $58.78, suggesting a potential upside of 14.83%. Given Etsy’s stronger consensus rating and higher possible upside, research analysts plainly believe Etsy is more favorable than Quhuo.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Etsy	10.80%	-46.62%	12.37%
Quhuo	N/A	N/A	N/A

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Etsy	$2.81 billion	1.95	$307.57 million	$2.37	21.60
Quhuo	$3.59 billion	0.00	$470,000.00	N/A	N/A

Etsy has higher earnings, but lower revenue than Quhuo.

Insider and Institutional Ownership

99.5% of Etsy shares are owned by institutional investors. Comparatively, 0.2% of Quhuo shares are owned by institutional investors. 2.6% of Etsy shares are owned by insiders. Comparatively, 33.1% of Quhuo shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Etsy has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500. Comparatively, Quhuo has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.

Summary

Etsy beats Quhuo on 10 of the 13 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 Quhuo

Quhuo Limited, through its subsidiaries, operates a gig economy platform in the People’s Republic of China. The company offers on-demand delivery solutions focusing on preparing food and deliver of other items, such as grocery and fresh food; and mobility services solutions comprise ride-hailing solutions, shared-bike maintenance, freight service, and vehicle export solutions. It also provides housekeeping solutions for hotels and other services, including maintenance services for short-term rental properties. In addition, the company offers Quhuo+, a logistics support and training software, as well as to manage delivery riders. Further, it engages in the development of computer software and applications; and bed and breakfast operations. The company was founded in 2012 and is based in Beijing, the People’s Republic of China.