Sea vs Shopify Which Offers More Value?

Sea Limited (SE) and Shopify Inc. (SHOP) are two leading e-commerce companies with significant market presence. Sea Limited operates primarily in Southeast Asia, while Shopify has a global reach. Both companies have seen remarkable growth in recent years, fueled by the increasing popularity of online shopping. However, there are key differences between the two stocks in terms of their business models, growth potential, and financial performance. In this analysis, we will compare Sea vs Shopify stocks to help investors make informed decisions about their investment portfolios.

Sea or Shopify?

When comparing Sea 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 Sea 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. Sea 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. Sea 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 Sea P/E ratio at 680.97 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. Sea P/B ratio is 8.68 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, Sea has seen a 5-year revenue growth of 8.44%, while Shopify's is 4.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Sea's ROE at 1.44% and Shopify's ROE at 14.85%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $114.16 for Sea and $113.44 for Shopify. Over the past year, Sea's prices ranged from $34.35 to $119.47, with a yearly change of 247.80%. 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.