Coupang vs LightInTheBox Which Should You Buy?

Coupang and LightInTheBox are two companies in the e-commerce industry that have had different trajectories in terms of their stock performance. Coupang, South Korea's largest e-commerce company, has seen its stock price soar since its IPO in March 2021, fueled by strong growth and investor confidence in its business model. On the other hand, LightInTheBox, a Chinese online retailer, has faced challenges in a competitive market, leading to more modest stock performance. This comparison highlights the diversity in the e-commerce sector and the varying factors that can impact stock performance.

Coupang or LightInTheBox?

When comparing Coupang and LightInTheBox, 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 Coupang and LightInTheBox.

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. Coupang has a dividend yield of -%, while LightInTheBox has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Coupang reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, LightInTheBox 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 Coupang P/E ratio at 41.31 and LightInTheBox's P/E ratio at -4.61. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Coupang P/B ratio is 10.16 while LightInTheBox's P/B ratio is -2.52.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Coupang has seen a 5-year revenue growth of 4.40%, while LightInTheBox's is 0.65%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Coupang's ROE at 25.43% and LightInTheBox's ROE at 74.27%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $23.40 for Coupang and $1.73 for LightInTheBox. Over the past year, Coupang's prices ranged from $13.51 to $26.91, with a yearly change of 99.19%. LightInTheBox's prices fluctuated between $1.64 and $7.14, with a yearly change of 335.37%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.