CAP vs Shopify Which Is More Attractive?

CAP and Shopify are both popular stocks in the technology sector, each offering unique opportunities for investors. Shopify is a leading e-commerce platform that has seen tremendous growth in recent years, making it a favorite among growth investors. On the other hand, CAP, or Capgemini, is a global IT consulting and services company that provides a diverse range of services to clients around the world. Both stocks have their own strengths and weaknesses, making them worth considering for a well-rounded investment portfolio.

CAP or Shopify?

When comparing CAP 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 CAP 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. CAP 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. CAP reports a 5-year dividend growth of -1.57% year and a payout ratio of -62.95%. 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 CAP P/E ratio at -4.03 and Shopify's P/E ratio at 110.46. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CAP P/B ratio is 0.43 while Shopify's P/B ratio is 15.10.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CAP has seen a 5-year revenue growth of 0.55%, while Shopify's is 4.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CAP's ROE at -9.81% and Shopify's ROE at 14.85%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are CLP$5288.60 for CAP and $116.40 for Shopify. Over the past year, CAP's prices ranged from CLP$4901.00 to CLP$7750.00, with a yearly change of 58.13%. 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.