Redbubble vs Shopify Which Performs Better?

Investors looking to get into the e-commerce market may find themselves debating between Redbubble and Shopify stocks. Redbubble, known for its user-generated artwork and merchandise, has seen steady growth in recent years. On the other hand, Shopify has become a household name for its easy-to-use platform for online businesses. Both companies have shown resilience during economic downturns. However, each stock comes with its own set of risks and potential rewards, making it important for investors to do their due diligence before deciding where to put their money.

Redbubble or Shopify?

When comparing Redbubble 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 Redbubble 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. Redbubble 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. Redbubble 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 Redbubble P/E ratio at -2.87 and Shopify's P/E ratio at 107.60. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Redbubble P/B ratio is 1.66 while Shopify's P/B ratio is 14.71.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Redbubble has seen a 5-year revenue growth of 1.31%, while Shopify's is 4.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Redbubble's ROE at -51.76% and Shopify's ROE at 14.85%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.20 for Redbubble and $115.15 for Shopify. Over the past year, Redbubble's prices ranged from $0.16 to $0.51, with a yearly change of 224.05%. 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.