NAVER vs Coupang Which Is a Better Investment?

NAVER and Coupang are two of the largest e-commerce companies in South Korea, competing for dominance in the online retail market. Both companies have experienced significant growth in recent years, with NAVER expanding its services beyond just search engine and web portal to also include e-commerce, while Coupang has gained popularity for its fast delivery services. Investors are closely watching the performance of these two stocks, as they represent key players in the rapidly growing South Korean tech industry.

NAVER or Coupang?

When comparing NAVER and Coupang, 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 NAVER and Coupang.

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. NAVER has a dividend yield of 0.57%, while Coupang has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NAVER reports a 5-year dividend growth of 30.86% year and a payout ratio of 10.78%. On the other hand, Coupang 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 NAVER P/E ratio at 18.98 and Coupang's P/E ratio at 41.61. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NAVER P/B ratio is 1.30 while Coupang's P/B ratio is 10.24.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NAVER has seen a 5-year revenue growth of 0.68%, while Coupang's is 4.40%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NAVER's ROE at 7.09% and Coupang's ROE at 25.43%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩205000.00 for NAVER and $23.66 for Coupang. Over the past year, NAVER's prices ranged from ₩151100.00 to ₩235500.00, with a yearly change of 55.86%. Coupang's prices fluctuated between $13.51 and $26.91, with a yearly change of 99.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.