Coupang vs Shopify Which Is Superior?

Coupang and Shopify are two leading e-commerce companies that have been gaining attention in the stock market. Coupang, a South Korean e-commerce giant, went public in March 2021 and quickly became one of the largest IPOs in the US. On the other hand, Shopify, a Canadian e-commerce platform, has been a top performer in the market for several years. Both companies have experienced rapid growth, but investors are debating which stock has more potential for long-term success. This comparison will analyze the strengths and weaknesses of Coupang and Shopify stocks to help investors make informed decisions.

Coupang or Shopify?

When comparing Coupang 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 Coupang 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. Coupang 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. Coupang reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Coupang P/E ratio at 41.61 and Shopify's P/E ratio at 106.97. 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 Shopify's P/B ratio is 14.62.

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 Shopify's is 4.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Coupang's ROE at 25.43% and Shopify's ROE at 14.85%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $23.66 for Coupang and $113.44 for Shopify. Over the past year, Coupang's prices ranged from $13.51 to $26.91, with a yearly change of 99.19%. 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.