Shopify vs Amazon.com Which Is Stronger?

Shopify and Amazon.com are two major players in the e-commerce industry, with both companies experiencing tremendous growth in recent years. Shopify is a Canadian-based e-commerce platform that allows businesses to create their own online stores, while Amazon.com is a global giant known for its vast marketplace and diverse range of products. Investors often compare the two stocks, considering factors such as revenue growth, market dominance, and profitability. Each stock has its own strengths and weaknesses, making them both attractive options for investors looking to capitalize on the booming e-commerce industry.

Shopify or Amazon.com?

When comparing Shopify and Amazon.com, 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 Shopify and Amazon.com.

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. Shopify has a dividend yield of -%, while Amazon.com has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Shopify reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Amazon.com 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 Shopify P/E ratio at 110.44 and Amazon.com's P/E ratio at 44.53. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Shopify P/B ratio is 15.33 while Amazon.com's P/B ratio is 8.57.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Shopify has seen a 5-year revenue growth of 4.42%, while Amazon.com's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Shopify's ROE at 14.38% and Amazon.com's ROE at 21.82%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $109.00 for Shopify and $210.89 for Amazon.com. Over the past year, Shopify's prices ranged from $48.56 to $115.62, with a yearly change of 138.10%. Amazon.com's prices fluctuated between $139.52 and $215.90, with a yearly change of 54.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.