Shopify vs THG

Shopify and THG are two leading e-commerce companies with stocks that have garnered significant attention from investors. Shopify, known for its user-friendly platform, has experienced strong growth in recent years and has become a popular choice among online retailers. On the other hand, THG, with its focus on beauty and nutrition products, has also seen impressive growth and has attracted a loyal customer base. Both stocks have their own unique strengths and appeal to different types of investors looking to capitalize on the booming e-commerce industry.

Shopify or THG?

When comparing Shopify and THG, 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 THG.

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 THG 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, THG 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 THG's P/E ratio at -2.63. 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 THG's P/B ratio is 0.68.

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 THG's is 0.67%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Shopify's ROE at 14.38% and THG's ROE at -24.45%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $80.46 for Shopify and £46.58 for THG. Over the past year, Shopify's prices ranged from $45.50 to $91.57, with a yearly change of 101.25%. THG's prices fluctuated between £46.58 and £89.98, with a yearly change of 93.17%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.