Etsy (NASDAQ:ETSY) versus DLocal (NASDAQ:DLO) Financial Survey

DLocal (NASDAQ:DLO) and Etsy (NASDAQ:ETSY) are both mid-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations and price targets for DLocal and Etsy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DLocal	0	7	2	0	2.22
Etsy	4	12	7	1	2.21

DLocal currently has a consensus price target of $12.50, indicating a potential upside of 34.99%. Etsy has a consensus price target of $70.22, indicating a potential upside of 38.14%. Given Etsy’s higher possible upside, analysts plainly believe Etsy is more favorable than DLocal.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DLocal	18.76%	34.35%	13.95%
Etsy	10.36%	-51.94%	12.29%

Institutional & Insider Ownership

90.1% of DLocal shares are owned by institutional investors. Comparatively, 99.5% of Etsy shares are owned by institutional investors. 45.4% of DLocal shares are owned by insiders. Comparatively, 2.6% of Etsy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares DLocal 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
DLocal	$707.64 million	3.87	$148.96 million	$0.44	21.05
Etsy	$2.77 billion	2.14	$307.57 million	$2.19	23.21

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

Risk and Volatility

DLocal has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Etsy has a beta of 1.97, meaning that its share price is 97% more volatile than the S&P 500.

Summary

Etsy beats DLocal on 9 of the 15 factors compared between the two stocks.

About DLocal

DLocal Limited operates a payment processing platform worldwide. The company offers pay-in solution which the business and get paid for their products and services through various payment methods, including international and local cards, online bank transfers and direct debit, cash, and alternative payment methods. It also provides pay-out solution used for merchants to scale pay-out operations. In addition, the company offers dLocal for Platforms, an end-to-end payment solution that offers a range of services to help platforms manage payments. It serves its products to commerce, streaming, ride-hailing, financial services, advertising, SaaS, travel, e-learning, on-demand delivery, and gaming and crypto industries. DLocal Limited was founded in 2016 and is headquartered in Montevideo, Uruguay.

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.