Should You Compare Shopify and Wix? WIX (SHOP) 2023


In the struggle for the top spot in the eCommerce market, should you go with Shopify (NYSE: SHOP) or Wix (NASDAQ: WIX)?

Both businesses provide entrepreneurs with a platform on which they can construct an online store, process payments, manage email marketing and shipping, and so on.

Shopify and Wix are now engaged in a battle for market dominance in the eCommerce industry as an increasing number of retail purchases are being made online.

Shopify is currently in the preeminent position.

Both businesses have varying degrees of profitability. The gross profit margins for Wix are greater, but the levered free cash flow margin for Shopify is slightly higher.

Shopify’s growth for the fourth quarter of fiscal 2022 was over 2,000 basis points higher than Wix’s increase for the same period.

Because of this, the more content-oriented website builder Wix is now trading at a price-to-sales multiple of 3.6x, which is far lower than Shopify’s multiple of 10.76x.