Critical Review: Etsy (NYSE:ETSY) versus Rich Sparkle (NASDAQ:ANPA)

Rich Sparkle (NASDAQ:ANPA) and Etsy (NYSE:ETSY) are both services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rich Sparkle	N/A	N/A	N/A
Etsy	6.38%	-29.07%	11.65%

Insider and Institutional Ownership

99.5% of Etsy shares are held by institutional investors. 2.8% of Etsy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rich Sparkle	$5.83 million	61.08	N/A	N/A	N/A
Etsy	$2.81 billion	1.83	$303.28 million	$1.42	36.58

Etsy has higher revenue and earnings than Rich Sparkle.

Analyst Ratings

This is a summary of recent ratings and target prices for Rich Sparkle and Etsy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rich Sparkle	1	0	0	0	1.00
Etsy	0	3	0	0	2.00

Summary

Etsy beats Rich Sparkle on 6 of the 8 factors compared between the two stocks.

About Rich Sparkle

Rich Sparkle Holdings Limited is a financial printing and corporate services provider which specializes in designing and printing quality financial print materials principally in Hong Kong. Its service portfolio covers a myriad of deliverables, mainly including listing documents, financial reports, fund documents, circulars and announcements. Rich Sparkle Holdings Limited is based in Hong Kong.

About Etsy

Etsy, Inc. operates two-sided online marketplaces that connect buyers and sellers primarily in the United States, the United Kingdom, Germany, Canada, Australia, France, and India. 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 various seller tools, including Shop Manager dashboard, a centralized hub for Etsy sellers to track orders, manage inventory, view metrics and statistics, and have conversations with their customers; and Sell on Etsy, an application to enable enhanced onboarding and video uploading. Additionally, it offers Etsy seller analytics pages that provides insights regarding traffic acquisition for their shops; Targeted Offers, a sales and promotions tool, and social media tool; and accounting and bookkeeping services. The company also provides 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. As of December 31, 2021, it connected a total of 7.5 million active sellers to 96.3 million active buyers; and had 120 million items for sale. 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.