Head to Head Analysis: Roundy's (RNDY) and Etsy (ETSY)

Etsy (NASDAQ: ETSY) and Roundy's (NYSE:RNDY) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Insider and Institutional Ownership

74.4% of Etsy shares are owned by institutional investors. 4.0% of Etsy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Etsy has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Roundy's has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Etsy 3.77% 9.19% 5.32%
Roundy's -0.89% N/A -3.14%

Earnings and Valuation

This table compares Etsy and Roundy's’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Etsy $364.97 million 6.52 -$29.90 million $0.12 162.83
Roundy's N/A N/A N/A ($0.06) -60.00

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Etsy and Roundy's, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Etsy 1 9 4 0 2.21
Roundy's 0 0 0 0 N/A

Etsy presently has a consensus target price of $15.63, suggesting a potential downside of 20.04%. Given Etsy’s higher possible upside, equities research analysts clearly believe Etsy is more favorable than Roundy's.

Summary

Etsy beats Roundy's on 11 of the 11 factors compared between the two stocks.

About Etsy

Etsy, Inc. (Etsy) operates a marketplace where people around the world connect, both online and offline, to make, sell and buy goods. The Company offers a range of seller services and tools that help entrepreneurs start, grow and manage their businesses. The Company’s community includes Etsy sellers, Etsy buyers, Etsy employees, its partners and investors. As of December 31, 2016, its platform connected 1.7 million active Etsy sellers and 28.6 million active Etsy buyers. Etsy sellers join its community to participate in its markets to express their creativity. Etsy sellers range from hobbyists to professional merchants, and have a range of personal and professional goals. Its supports a group of artists, makers, designers and collectors from around the world. Its services platform includes seller services, seller tools and education. The Company’s seller services include Direct Checkout, Promoted Listings, Shipping Labels and Pattern by Etsy.

About Roundy's

Roundy’s, Inc. is a Midwest supermarket chain. The Company offers a range of products, stocking around 45,000 different items. Its stores sell nationally advertised brands, as well as products under the Roundy’s own-brand labels. Its products are classified into non-perishable, perishable and non-food. Non-perishable food categories include grocery, frozen and dairy products. Perishable categories include produce, meat, seafood, deli, bakery and floral. Non-food includes general merchandise, health and beauty care, pharmacy and alcohol. It classifies products into primary categories, including grocery, frozen and dairy; produce; meat and seafood; bakery; deli, cheese and prepared foods; floral; general merchandise; alcohol; pharmacy; and health and beauty care. Its retail operations consists of around 148 grocery stores, with 119 stores in Wisconsin operating under the Pick ‘n Save, Copps and Metro Market banners and 29 stores in Illinois operating under the Mariano’s banner.

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