eBay vs Etsy
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KIRA’s take AI analyst
I put eBay and Etsy side by side, using each one’s latest annual report. Here is what stands out:
- eBay is the larger business, with $11.1B of revenue in fiscal 2025 against $2.9B for Etsy, about 3.8 times as much.
- eBay grew revenue faster (8.0%, against 2.7%).
- eBay kept more of each dollar of sales as operating profit (20.5% operating margin, against 9.2%).
- Etsy turned more of its sales into free cash flow (23.5% FCF margin, against 12.9%).
- Etsy earned a higher return on the capital invested in it (37.2%, against 26.8%).
- Investors pay more for each dollar of Etsy’s earnings: a P/E of 49.0x against 24.4x for eBay.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
eBay
EBAY
5/10
Revenue growthOperating marginNet marginNet debt / EBITDAShare count change
Etsy
ETSY
4/10
5-year growthGross marginFCF marginReturn on capital
Side by side
Best in the row
| Latest fiscal year | EBAY FY25 | ETSY FY25 |
|---|---|---|
| Size | ||
| Market cap | $53.6B | $10.5B |
| Revenue | $11.1B | $2.9B |
| Free cash flow | $1.4B | $678M |
| Net income | $2.0B | $163M |
| Growth | ||
| Revenue growth | 8.0% | 2.7% |
| 5-year growth | 4.5% | 10.8% |
| Share count change | −6.6% | −5.8% |
| Profitability | ||
| Gross margin | 71.5% | 71.6% |
| Operating margin | 20.5% | 9.2% |
| Net margin | 18.3% | 5.7% |
| FCF margin | 12.9% | 23.5% |
| Return on capital | 26.8% | 37.2% |
| Return on equity | 41.6% | — |
| Balance sheet | ||
| Net debt | $3.8B | $1.5B |
| Net debt / EBITDA | 1.4x | 4.0x |
| Dividends and buybacks | $3.0B | $777M |
| Valuation & quality | ||
| P/E | 24.4x | 49.0x |
| Piotroski F-score | 5 | 5 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.