Bread Financial vs Shopify Which Is Superior?

Bread Financial and Shopify are two widely recognized companies in the financial and e-commerce industries, respectively. Both stocks have garnered attention from investors due to their innovative business models and strong growth potential. Bread Financial offers consumer-friendly financing solutions, making it easier for customers to make purchases. On the other hand, Shopify is a leading e-commerce platform that empowers businesses to create an online presence. Analyzing the performance of these stocks can provide valuable insights into the current market trends and investment opportunities.

Bread Financial or Shopify?

When comparing Bread Financial 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 Bread Financial 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. Bread Financial has a dividend yield of 1.27%, while Shopify has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Bread Financial reports a 5-year dividend growth of -18.10% year and a payout ratio of 13.46%. 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 Bread Financial P/E ratio at 10.52 and Shopify's P/E ratio at 107.60. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Bread Financial P/B ratio is 1.05 while Shopify's P/B ratio is 14.71.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Bread Financial has seen a 5-year revenue growth of -0.40%, while Shopify's is 4.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Bread Financial's ROE at 10.20% and Shopify's ROE at 14.85%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $65.67 for Bread Financial and $115.15 for Shopify. Over the past year, Bread Financial's prices ranged from $28.00 to $66.71, with a yearly change of 138.25%. 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.