Wix.com vs Shopify

Wix.com and Shopify are two leading e-commerce platforms that have seen significant growth in recent years. Wix.com is known for its user-friendly website building tools, while Shopify offers a comprehensive suite of services for online retailers. Both companies have seen their stocks soar in value, but there are key differences between them in terms of business models, revenue streams, and market share. Investors seeking to capitalize on the booming e-commerce industry may find opportunities in either Wix.com or Shopify stocks.

Wix.com or Shopify?

When comparing Wix.com and Shopify, 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 Wix.com and Shopify.

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. Wix.com has a dividend yield of -%, while Shopify has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Wix.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Shopify 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 Wix.com P/E ratio at 125.60 and Shopify's P/E ratio at 82.95. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Wix.com P/B ratio is -28.59 while Shopify's P/B ratio is 11.51.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Wix.com has seen a 5-year revenue growth of 1.19%, while Shopify's is 4.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Wix.com's ROE at -44.10% and Shopify's ROE at 14.38%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $163.35 for Wix.com and $80.46 for Shopify. Over the past year, Wix.com's prices ranged from $76.90 to $178.65, with a yearly change of 132.31%. Shopify's prices fluctuated between $45.50 and $91.57, with a yearly change of 101.25%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.