SHOP vs WIX

For growth investors, Shopify Inc.

(SHOP) is the stronger pick with 30. 1% revenue growth year-over-year, versus 13. 2% for Wix. com Ltd. (WIX). Wix. com Ltd. (WIX) offers the better valuation at 85. 0x trailing P/E (12. 5x forward), making it the more compelling value choice. Analysts rate Shopify Inc. (SHOP) a "Buy" — based on 63 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Wix.

com Ltd. (WIX) is the cheapest at 85. 0x versus Shopify Inc. at 112. 2x. On forward P/E, Wix. com Ltd. is actually cheaper at 12. 5x.

Over the past 5 years, Shopify Inc.

(SHOP) delivered a total return of -3. 3%, compared to -73. 1% for Wix. com Ltd. (WIX). Over 10 years, the gap is even starker: SHOP returned +37. 0% versus WIX's +192. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Wix.

com Ltd. (WIX) is the lower-risk stock at 0. 94β versus Shopify Inc. 's 2. 64β — meaning SHOP is approximately 179% more volatile than WIX relative to the S&P 500.

By revenue growth (latest reported year), Shopify Inc.

(SHOP) is pulling ahead at 30. 1% versus 13. 2% for Wix. com Ltd. (WIX). On earnings-per-share growth, the picture is similar: Shopify Inc. grew EPS -39. 4% year-over-year, compared to -62. 7% for Wix. com Ltd.. Over a 3-year CAGR, SHOP leads at 27. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Shopify Inc.

(SHOP) is the more profitable company, earning 10. 7% net margin versus 2. 5% for Wix. com Ltd. — meaning it keeps 10. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SHOP leads at 12. 7% versus 0. 1% for WIX. At the gross margin level — before operating expenses — WIX leads at 68. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Wix.

com Ltd. (WIX) trades at 12. 5x forward P/E versus 57. 5x for Shopify Inc. — 45. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for WIX: 81. 7% to $135. 92.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Wix.

com Ltd. (WIX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 94), +192. 2% 10Y return). Shopify Inc. (SHOP) carries a higher beta of 2. 64 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (WIX: +192. 2%, SHOP: +37. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: SHOP is a mid-cap high-growth stock; WIX is a small-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.