From The Motley Fool · Jake Lerch · · 1m 10s
Etsy vs Five Below: 2026 Stock Comparison
Etsy and Five Below: Which consumer stock offers better growth and value in 2026?
In brief
Etsy and Five Below: Which consumer stock offers better growth and value in 2026? Five Below's lower valuation and higher growth prospects make it the better 2026 buy over Etsy. Originally reported by The Motley Fool.
Etsy Overview
Etsy operates a digital platform connecting nearly 87 million buyers with creative sellers.
Five Below Overview
Five Below targets teens and families with value-priced products across 1,900 stores.
Financial Metrics
Etsy has a market cap of $7.7B with a gross margin of 72.62%, while Five Below has a $13B market cap and 36.49% gross margin.
Etsy Performance
Etsy reported $2.9 billion revenue in FY 2025 with a net margin of 5.7%.
Five Below Performance
Five Below achieved $4.8 billion revenue in FY 2025 with a net margin of 7.5%.
Growth Comparison
Five Below has averaged 15.9% quarterly revenue growth over five years versus Etsy's 5.4%.
Profitability
Etsy has a five-year average operating margin of 15.5%, while Five Below's is 10.7%.
Valuation
Five Below's current P/E multiple is 20x, while Etsy's is 52x, making Five Below the better value.
The big picture
Five Below's lower valuation and higher growth prospects make it the better 2026 buy over Etsy.
