Groupon vs Shopify Which Is More Profitable?

Groupon and Shopify are two well-known e-commerce companies with their own unique business models and target markets. Groupon is a platform that offers discounted deals and experiences to consumers, while Shopify provides tools and services for businesses to create and manage online stores. Both companies have seen fluctuations in their stock prices in recent years, with Shopify experiencing significant growth and Groupon facing challenges. Investors looking to capitalize on the e-commerce industry may want to compare and contrast the performance of these two stocks.

Groupon or Shopify?

When comparing Groupon 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 Groupon 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. Groupon 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. Groupon 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 Groupon P/E ratio at -12.89 and Shopify's P/E ratio at 91.11. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Groupon P/B ratio is 11.53 while Shopify's P/B ratio is 12.65.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Groupon has seen a 5-year revenue growth of -0.82%, while Shopify's is 4.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Groupon's ROE at 1658.96% and Shopify's ROE at 14.38%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.02 for Groupon and $88.71 for Shopify. Over the past year, Groupon's prices ranged from $8.52 to $19.56, with a yearly change of 129.58%. Shopify's prices fluctuated between $48.56 and $92.16, with a yearly change of 89.79%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.