Etsy, Inc. ETSY

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
63/100
Moderate

About Etsy, Inc.

Etsy, Inc., together with its subsidiaries, operates two-sided online marketplaces that connect buyers and sellers in the United States, the United Kingdom, and internationally. It operates through Etsy and Depop segments. The company operates Etsy marketplace that connects artisans with various consumers; and Depop, a fashion resale marketplace. It also provides marketplace activities, including transaction offsite advertising, payments processing, and … Full ETSY analysis →

Competitive advantage assessment

Key strengths

  • Margins Consistently Above Peers Gross margin at 71.6% (top 16%) and operating margin at 9.2% (top 13%) indicate strong pricing power.
  • Cash Generation Consistent Cash generation is consistent (score 0.90), indicating reliable business model.

Key risks

  • Volatile Margins Suggest Cyclicality Margin volatility is high (stability score 0.32), suggesting cyclical exposure or competitive pressure.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
64

Where ETSY ranks in Internet Retail

Etsy, Inc. ranks #11 of 43 scored companies in Internet Retail by moat score — the top 26%. The widest moat in the group is PDD Holdings Inc. (PDD) at 77/100.

Moat scores for companies ranked near ETSY in Internet Retail
# Company Moat score Rating
7 Liquidity Services, Inc. LQDT 69/100 Moderate
8 Global-E Online Ltd. GLBE 69/100 Moderate
9 Sea Limited SE 68/100 Moderate
10 Revolve Group, Inc. RVLV 66/100 Moderate
11 Etsy, Inc. ETSY 63/100 Moderate
12 Chewy, Inc. CHWY 62/100 Moderate
13 Alibaba Group Holding Limited BABA 60/100 Moderate
14 Hour Loop, Inc. HOUR 55/100 Moderate
15 ATRenew Inc. RERE 55/100 Moderate

See every General Corporate company ranked by moat score →

How ETSY scores on the Corporate Default defenses

Pricing Power

Score 64 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 62 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 79 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 47 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 54 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 78 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding ETSY's moat

What is Etsy, Inc.'s moat score?

Etsy, Inc. (ETSY) scores 63 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #11 of 43 scored companies in Internet Retail, the top 26%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 42 companies in Internet Retail. Its strongest defense is Customer Stickiness (79/100) and its weakest is Capital Efficiency (47/100).

How does Etsy, Inc. compare with other Internet Retail companies?

Etsy, Inc. ranks #11 of 43 scored companies in Internet Retail by moat score. The widest moat in Internet Retail is PDD Holdings Inc. (PDD) at 77/100. The companies ranked closest are Revolve Group, Inc. (RVLV) at 66 just above it and Chewy, Inc. (CHWY) at 62 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 42 companies in Internet Retail. The defenses are then weighted to produce the overall score out of 100.

Why is Etsy, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Etsy, Inc.?

The Corporate Default template measures 6 defenses, and ETSY scores: Pricing Power (64), Cost Advantage (62), Customer Stickiness (79), Capital Efficiency (47), Resilience (54), Scale & Market Position (78). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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