Shopify vs Walmart Which Is More Lucrative?

Shopify and Walmart are two major players in the retail industry, but they operate in different segments. Shopify is an e-commerce platform that allows businesses to create online stores, while Walmart is a multi-national retail corporation with a large physical presence. Investors looking to compare the two stocks may consider factors such as revenue growth, profitability, market share, and future prospects. Shopify has experienced rapid growth in recent years, while Walmart has a long history of steady performance. Both companies have their strengths and weaknesses, making them interesting options for investors seeking exposure to the retail sector.

Shopify or Walmart?

When comparing Shopify and Walmart, 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 Walmart.

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 Walmart has a dividend yield of 0.88%. 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, Walmart reports a 5-year dividend growth of 1.85% year and a payout ratio of 33.23%.

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 Walmart's P/E ratio at 38.50. 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 Walmart's P/B ratio is 8.60.

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 Walmart's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Shopify's ROE at 14.85% and Walmart's ROE at 23.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $113.44 for Shopify and $93.04 for Walmart. Over the past year, Shopify's prices ranged from $48.56 to $120.72, with a yearly change of 148.60%. Walmart's prices fluctuated between $50.51 and $96.18, with a yearly change of 90.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.