Shopify Vs. Wix: Whose Common Shares Should You Check Out?
Summary
- Shopify and Wix are currently battling for eCommerce market share as more retail sales are conducted online. Shopify occupies a dominant position.
- Profitability for both businesses is mixed. Wix has higher gross profit margins but Shopify's levered FCF margin is slightly ahead.
- Shopify notched fiscal 2022 fourth-quarter growth that was nearly 2,000 basis points higher than Wix.
- This has rendered the more content-oriented Wix to trade on a price-to-sales multiple of 3.6x versus Shopify's 10.76x multiple.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of SHOP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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