BigCommerce vs Shopify Which Performs Better?

BigCommerce and Shopify are two of the biggest players in the e-commerce industry, providing robust platforms for businesses to set up and run online stores. Both companies have seen significant growth in their stock prices in recent years, with Shopify experiencing a particularly impressive surge. However, there are key differences between the two companies that investors should be aware of. Understanding these differences can help investors make informed decisions about which stock may be a better investment for their portfolio.

BigCommerce or Shopify?

When comparing BigCommerce and Shopify, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between BigCommerce and Shopify.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. BigCommerce has a dividend yield of -%, while Shopify has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. BigCommerce reports a 5-year dividend growth of 0.00% year and a payout ratio of -2.75%. On the other hand, Shopify reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with BigCommerce P/E ratio at -19.71 and Shopify's P/E ratio at 106.97. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. BigCommerce P/B ratio is 18.91 while Shopify's P/B ratio is 14.62.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, BigCommerce has seen a 5-year revenue growth of 1.55%, while Shopify's is 4.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with BigCommerce's ROE at -103.45% and Shopify's ROE at 14.85%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.94 for BigCommerce and $113.44 for Shopify. Over the past year, BigCommerce's prices ranged from $5.12 to $10.19, with a yearly change of 98.83%. Shopify's prices fluctuated between $48.56 and $120.72, with a yearly change of 148.60%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.