logo
welcome
TipRanks

TipRanks

Shopify vs. Block: Which E-Commerce and Fintech Stock Is the Better Buy?

TipRanks
Summary
Nutrition label

85% Informative

Shopify ( SHOP ) and Block ( SQ ) are two very different companies, yet both operate in the e-commerce and payments sectors.

Over the past five years , their trajectories have been quite similar both were major beneficiaries of pandemic tailwinds, only to face significant drawdowns as those effects faded.

This article provides a closer look at the recent developments of both companies, leading to a neutral outlook for Shopify and a bullish outlook for Block.

Block trades at a forward P/E ratio of 24.2x , nearly double the industry average.

The company is forecasting robust bottom-line growth, with an expected CAGR of 39.9% over the next three to five years .

Shopify trades at valuations that seem undervalued relative to its strong EPS growth forecast, making it a less risky investment in my view.

VR Score

87

Informative language

87

Neutral language

52

Article tone

formal

Language

English

Language complexity

56

Offensive language

not offensive

Hate speech

not hateful

Attention-grabbing headline

not detected

Known propaganda techniques

not detected

Time-value

medium-lived

Source diversity

1

Affiliate links

no affiliate links