Wix.com vs Squarespace

Wix.com and Squarespace are two of the most popular website building platforms in the market, offering users easy-to-use tools to create and manage their online presence. Both companies have seen impressive growth in recent years, with their stocks performing well on the market. However, they have distinct differences in terms of pricing, features, and target audience. This article will compare the stocks of Wix.com and Squarespace, exploring their financial performance, market trends, and potential for future growth.

Wix.com or Squarespace?

When comparing Wix.com and Squarespace, 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 Squarespace.

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 Squarespace 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, Squarespace 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 Squarespace's P/E ratio at -1294.66. 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 Squarespace's P/B ratio is -26.47.

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 Squarespace's is 1.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Wix.com's ROE at -44.10% and Squarespace's ROE at 1.88%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $163.35 for Wix.com and $46.51 for Squarespace. Over the past year, Wix.com's prices ranged from $76.90 to $178.65, with a yearly change of 132.31%. Squarespace's prices fluctuated between $26.70 and $46.69, with a yearly change of 74.85%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.