Coupang vs Sea Which Should You Buy?

Coupang and Sea Limited are two prominent e-commerce companies that have been making waves in the stock market. Coupang, often referred to as the "Amazon of South Korea," has seen tremendous growth since its inception in 2010. On the other hand, Sea Limited, based in Singapore, has quickly become a major player in Southeast Asia's e-commerce and digital entertainment sectors. Both companies have garnered significant investor interest, but each offers unique strengths and challenges that differentiate them in the competitive e-commerce landscape.

Coupang or Sea?

When comparing Coupang and Sea, 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 Sea.

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 Sea 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, Sea 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 Sea's P/E ratio at 655.13. 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 Sea's P/B ratio is 8.35.

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 Sea's is 8.44%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Coupang's ROE at 25.43% and Sea's ROE at 1.44%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $23.40 for Coupang and $111.70 for Sea. Over the past year, Coupang's prices ranged from $13.51 to $26.91, with a yearly change of 99.19%. Sea's prices fluctuated between $34.35 and $119.47, with a yearly change of 247.80%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.