Etsy (ETSY) & Servicesource International (SREV) Critical Contrast

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

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Etsy $441.23 million 11.42 $81.80 million $0.38 111.03
Servicesource International $239.13 million 1.50 -$29.84 million $0.08 49.25

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

Profitability

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

Net Margins Return on Equity Return on Assets
Etsy 20.46% 16.10% 8.89%
Servicesource International -12.40% 4.47% 1.70%

Risk & Volatility

Etsy has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500. Comparatively, Servicesource International has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Etsy and Servicesource International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Etsy 1 4 5 0 2.40
Servicesource International 0 1 1 0 2.50

Etsy presently has a consensus target price of $34.95, indicating a potential downside of 17.16%. Servicesource International has a consensus target price of $5.13, indicating a potential upside of 30.08%. Given Servicesource International’s stronger consensus rating and higher probable upside, analysts clearly believe Servicesource International is more favorable than Etsy.

Institutional & Insider Ownership

84.4% of Etsy shares are held by institutional investors. Comparatively, 68.3% of Servicesource International shares are held by institutional investors. 2.8% of Etsy shares are held by company insiders. Comparatively, 19.0% of Servicesource International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Etsy beats Servicesource International on 10 of the 14 factors compared between the two stocks.

Etsy Company Profile

Etsy, Inc. operates Etsy.com, a commerce platform to make, sell, and buy goods online and offline primarily in the United States, United Kingdom, Canada, Australia, France, and Germany. It provides various seller services and tools that are designed to help entrepreneurs for starting, managing, and scaling their businesses. The company offers approximately 50 million items across approximately 50 retail categories to buyers. It also provides various seller services, including Etsy payments, a payment processing service; promoted listings, an on-site advertising service that allows sellers to pay for prominent placement of their listings in search results; shipping labels, which allows sellers in the United States and Canada to purchase discounted shipping labels; and pattern, a service that allows sellers to build custom Websites, as well as offers seller tools and education resources to manage the administrative side of their businesses. Etsy, Inc. was founded in 2005 and is headquartered in Brooklyn, New York.

Servicesource International Company Profile

ServiceSource International, Inc. provides recurring revenue management, maintenance, support, and subscription for technology and technology-enabled healthcare and life sciences companies. The company's solutions include outsourced sales operations, customer onboarding, customer success management, cross-sell and upsell, warranty conversion, account-based marketing, and channel recruitment and enablement, as well as renewals management, including the sale of maintenance and support service contracts for the products used by its clients' end-users. Its solutions also comprise sales performance analysis, business case, pricing and contract structuring, data integration, data reservoir and performance optimization, client benchmarking and continuous improvement, and developing and delivering applications. In addition, the company's technologies include customer success management, renewal and channel management, inside sales, and productivity tools. It sells its solutions through sales organization worldwide. ServiceSource International, Inc. was founded in 2002 and is headquartered in Denver, Colorado.

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