ETSY vs. SHOP

Last updated Jun 3, 2026

ETSY (Etsy, Inc.) and SHOP (Shopify Inc.) are both stocks. ETSY operates in Internet Retail (Consumer Cyclical), while SHOP operates in Software - Application (Technology). Over the past 10 years, ETSY returned 22.44%/yr vs 44.45%/yr for SHOP. At a 0.47 correlation, their price movements are largely independent.

Performance

ETSY vs. SHOP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Etsy, Inc. (ETSY) and Shopify Inc. (SHOP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ETSY achieves a 25.78% return, which is significantly higher than SHOP's -27.31% return. Over the past 10 years, ETSY has underperformed SHOP with an annualized return of 22.44%, while SHOP has yielded a comparatively higher 44.45% annualized return.

ETSY

• 1D: 1.06%
• 1M: 10.38%
• YTD: 25.78%
• 6M: 27.55%
• 1Y: 18.71%
• 3Y*: -6.39%
• 5Y*: -15.90%
• 10Y*: 22.44%

SHOP

• 1D: -5.73%
• 1M: -8.35%
• YTD: -27.31%
• 6M: -25.39%
• 1Y: 9.83%
• 3Y*: 26.15%
• 5Y*: -0.49%
• 10Y*: 44.45%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ETSY vs. SHOP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ETSY Etsy, Inc.	25.78%	4.82%	-34.74%	-32.33%	-45.29%	23.06%	301.60%	-6.87%	132.62%	73.60%
SHOP Shopify Inc.	-27.31%	51.39%	36.50%	124.43%	-74.80%	21.68%	184.71%	187.17%	37.08%	135.60%

Correlation

The correlation between ETSY and SHOP is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.21
Correlation (3Y) Calculated over the trailing 3-year period	0.30
Correlation (5Y) Calculated over the trailing 5-year period	0.48
Correlation (10Y) Calculated over the trailing 10-year period	0.49
Correlation (All Time) Calculated using the full available price history since May 22, 2015	0.47

Over the past year, the correlation between ETSY and SHOP has dropped to 0.21 - well below their long-term average of 0.47, suggesting their price drivers have been diverging.

Fundamentals

Market Cap ETSY : $8.44B SHOP : $152.51B
EPS ETSY : $3.01 SHOP : $1.02
PE Ratio ETSY : 23.20 SHOP : 114.86
PS Ratio ETSY : 2.99 SHOP : 16.64
Total Revenue (TTM) ETSY : $2.86B SHOP : $9.20B
Gross Profit (TTM) ETSY : $2.06B SHOP : $5.93B
EBITDA (TTM) ETSY : $489.49M SHOP : $1.60B

Return for Risk

ETSY vs. SHOP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ETSY

ETSY Risk / Return Rank: 52
ETSY Sharpe Ratio Rank: 52
ETSY Sortino Ratio Rank: 49
ETSY Omega Ratio Rank: 49
ETSY Calmar Ratio Rank: 54
ETSY Martin Ratio Rank: 53

SHOP

SHOP Risk / Return Rank: 45
SHOP Sharpe Ratio Rank: 47
SHOP Sortino Ratio Rank: 45
SHOP Omega Ratio Rank: 44
SHOP Calmar Ratio Rank: 45
SHOP Martin Ratio Rank: 45

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ETSY vs. SHOP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Etsy, Inc. (ETSY) and Shopify Inc. (SHOP). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	ETSY	SHOP	Difference
Sharpe ratio Return per unit of total volatility	0.34	0.17	+0.17
Sortino ratio Return per unit of downside risk	0.85	0.66	+0.20
Omega ratio Gain probability vs. loss probability	1.10	1.08	+0.02
Calmar ratio Return relative to maximum drawdown	0.62	0.20	+0.43
Martin ratio Return relative to average drawdown	1.23	0.43	+0.80
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ETSY vs. SHOP - Sharpe Ratio Comparison

The current ETSY Sharpe Ratio is 0.34, which is higher than the SHOP Sharpe Ratio of 0.17. The chart below compares the historical Sharpe Ratios of ETSY and SHOP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ETSY	SHOP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.34	0.17	+0.17
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.29	-0.01	-0.28
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.40	0.76	-0.36
Sharpe Ratio (All Time) Calculated using the full available price history	0.14	0.70	-0.56

Drawdowns

ETSY vs. SHOP - Drawdown Comparison

The maximum ETSY drawdown since its inception was -86.26%, roughly equal to the maximum SHOP drawdown of -84.82%. Use the drawdown chart below to compare losses from any high point for ETSY and SHOP.

Drawdown Indicators

	ETSY	SHOP	Difference
Max Drawdown Largest peak-to-trough decline	-86.26%	-84.82%	-1.44%
Max Drawdown (1Y) Largest decline over 1 year	-41.70%	-46.71%	+5.01%
Max Drawdown (3Y) Largest decline over 3 years	-59.86%	-46.71%	-13.15%
Max Drawdown (5Y) Largest decline over 5 years	-86.26%	-84.82%	-1.44%
Max Drawdown (10Y) Largest decline over 10 years	-86.26%	-84.82%	-1.44%
Current Drawdown Current decline from peak	-76.51%	-34.63%	-41.88%
Average Drawdown Average peak-to-trough decline	-48.17%	-28.20%	-19.97%
Ulcer Index Depth and duration of drawdowns from previous peaks	21.09%	21.23%	-0.14%

Volatility

ETSY vs. SHOP - Volatility Comparison

The current volatility for Etsy, Inc. (ETSY) is 13.21%, while Shopify Inc. (SHOP) has a volatility of 24.51%. This indicates that ETSY experiences smaller price fluctuations and is considered to be less risky than SHOP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ETSY	SHOP	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.21%	24.51%	-11.30%
Volatility (6M) Calculated over the trailing 6-month period	35.90%	43.87%	-7.97%
Volatility (1Y) Calculated over the trailing 1-year period	55.91%	57.07%	-1.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	55.39%	65.50%	-10.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	56.25%	59.05%	-2.80%

Dividends

ETSY vs. SHOP - Dividend Comparison

Neither ETSY nor SHOP has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

Frequently Asked Questions

Can I hold both ETSY and SHOP in my portfolio?

ETSY and SHOP have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ETSY or SHOP?

SHOP has higher volatility (24.51%) compared to ETSY (13.21%). In terms of maximum drawdown, ETSY dropped -86.26% vs SHOP's -84.82%.

Which has better risk-adjusted returns?

ETSY currently has the higher Sharpe Ratio (0.34 vs 0.17), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.