Coupang vs NAVER Which Is a Better Investment?

Coupang and NAVER are two prominent South Korean companies that have seen significant growth in recent years, particularly in the technology and e-commerce sectors. Coupang is known for its online shopping platform, while NAVER is a leading search engine and internet portal. Both companies have gained attention from investors and analysts for their innovative approaches and strong market positions. This introductory comparison will delve into the key differences and similarities between Coupang and NAVER stocks, offering insights into their respective investment potential.

Coupang or NAVER?

When comparing Coupang and NAVER, 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 NAVER.

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 NAVER has a dividend yield of 0.59%. 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, NAVER reports a 5-year dividend growth of 30.86% year and a payout ratio of 10.78%.

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 41.62 and NAVER's P/E ratio at 18.48. 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 10.24 while NAVER's P/B ratio is 1.26.

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 NAVER's is 0.68%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Coupang's ROE at 25.43% and NAVER's ROE at 7.09%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $23.68 for Coupang and ₩197300.00 for NAVER. Over the past year, Coupang's prices ranged from $13.51 to $26.91, with a yearly change of 99.19%. NAVER's prices fluctuated between ₩151100.00 and ₩235500.00, with a yearly change of 55.86%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.