Shopify vs Mercari

Shopify and Mercari are two e-commerce companies that have gained attention from investors in recent years. Shopify, a Canadian-based company, provides a platform for businesses to create and manage online stores, while Mercari, a Japanese-based company, operates a marketplace app for buying and selling goods. Both companies have seen impressive growth in their respective markets, but they have different business models and strategies. In this comparison, we will examine the stocks of Shopify and Mercari to help investors make informed decisions about investing in these companies.

Shopify or Mercari?

When comparing Shopify and Mercari, 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 Mercari.

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 Mercari 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, Mercari 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 82.95 and Mercari's P/E ratio at 33.36. 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 11.51 while Mercari's P/B ratio is 5.81.

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 Mercari's is 2.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Shopify's ROE at 14.38% and Mercari's ROE at 19.25%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $80.46 for Shopify and $8.62 for Mercari. Over the past year, Shopify's prices ranged from $45.50 to $91.57, with a yearly change of 101.25%. Mercari's prices fluctuated between $5.49 and $11.46, with a yearly change of 108.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.