Contrasting Etsy (NASDAQ:ETSY) and Quhuo (NASDAQ:QH)

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

Volatility and Risk

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

Valuation and Earnings

This table compares Quhuo and Etsy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quhuo	$3.59 billion	0.00	$470,000.00	N/A	N/A
Etsy	$2.81 billion	1.87	$307.57 million	$2.37	20.70

Etsy has lower revenue, but higher earnings than Quhuo.

Institutional and Insider Ownership

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

Analyst Recommendations

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

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

Etsy has a consensus target price of $58.78, suggesting a potential upside of 19.84%. Given Etsy’s stronger consensus rating and higher probable upside, analysts clearly believe Etsy is more favorable than Quhuo.

Profitability

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

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

Summary

Etsy beats Quhuo on 10 of the 13 factors compared between the two stocks.

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.

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.