Shopify vs VTEX Which Is More Promising?

Shopify and VTEX are two leading e-commerce platform providers, each offering unique opportunities for investors. Shopify, a Canadian company, has seen significant growth in recent years, with its stock price rising steadily. In contrast, VTEX, a Brazilian company, has also shown promise with its innovative solutions and expansion into new markets. Both stocks have their strengths and weaknesses, making them interesting choices for investors looking to capitalize on the booming e-commerce industry. In this comparison, we will delve into the key differences between Shopify and VTEX stocks to help investors make informed decisions.

Shopify or VTEX?

When comparing Shopify and VTEX, 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 VTEX.

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 VTEX 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, VTEX 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 106.97 and VTEX's P/E ratio at 131.09. 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 14.62 while VTEX's P/B ratio is 4.48.

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 VTEX's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Shopify's ROE at 14.85% and VTEX's ROE at 3.60%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $113.44 for Shopify and $6.34 for VTEX. Over the past year, Shopify's prices ranged from $48.56 to $120.72, with a yearly change of 148.60%. VTEX's prices fluctuated between $5.72 and $9.59, with a yearly change of 67.66%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.