In the ever-evolving landscape of technology, Wix.com Ltd. and Shopify Inc. stand out as key players in the software sector, each offering unique platforms aimed at empowering businesses. While Wix specializes in website development through its intuitive drag-and-drop interface, Shopify focuses on providing a comprehensive e-commerce solution for merchants worldwide. This comparison will explore their innovation strategies and market positioning, helping you, as an investor, determine which company presents the more compelling opportunity for your portfolio.
Table of contents
Company Overview
Wix.com Ltd. Overview
Wix.com Ltd., founded in 2006 and headquartered in Tel Aviv, Israel, offers a cloud-based platform designed to empower users to create websites and web applications without requiring extensive technical skills. The company provides a suite of tools, including the Wix Editor, Wix ADI for tailored website creation, and various applications for business management. With approximately 222M registered users and 6M premium subscriptions, Wix caters to a diverse clientele across multiple regions, including North America and Europe. As a leader in the Software – Infrastructure sector, Wix emphasizes user accessibility and flexibility, allowing businesses to automate operations and enhance customer engagement.
Shopify Inc. Overview
Shopify Inc., established in 2004 and based in Ottawa, Canada, specializes in e-commerce solutions that enable merchants to manage and sell products through various channels, including online storefronts and physical retail locations. The platform offers functionalities such as inventory management, order processing, and payment solutions, catering to a global market that spans North America, Europe, and beyond. With a robust market capitalization of $206.8B and a workforce of 8,100 employees, Shopify positions itself as a key player in the Software – Application industry, focusing on empowering entrepreneurs and businesses of all sizes to thrive in the digital economy.
Key similarities and differences
Both Wix and Shopify provide user-friendly platforms aimed at enhancing online presence and business operations. However, while Wix focuses more on website creation and design flexibility, Shopify emphasizes comprehensive e-commerce capabilities, including sales management and payment processing. This distinction highlights their unique approaches to serving different aspects of online business needs.
Income Statement Comparison
In this section, I provide a comparative overview of the most recent income statements for Wix.com Ltd. and Shopify Inc., focusing on key financial metrics.
| Metric | Wix.com Ltd. (WIX) | Shopify Inc. (SHOP) |
|---|---|---|
| Market Cap | 5.33B | 206.81B |
| Revenue | 1.76B | 8.88B |
| EBITDA | 186M | 1.34B |
| EBIT | 155M | 1.30B |
| Net Income | 138M | 2.02B |
| EPS | 2.49 | 1.56 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
The income statements reveal contrasting trajectories for Wix and Shopify. Wix experienced a significant revenue increase to 1.76B, while its net income rose to 138M, suggesting improved operational efficiency. Conversely, Shopify’s revenue surged to 8.88B with a robust net income of 2.02B, indicating strong market demand and effective cost management, despite high operating expenses. Both companies show positive trends, but Shopify’s larger scale and profitability highlight its competitive advantage in the technology sector.
Financial Ratios Comparison
In this section, I present a comparative table of key financial ratios for Wix.com Ltd. (WIX) and Shopify Inc. (SHOP). This comparison will help you assess the financial health and performance of both companies.
| Metric | WIX | SHOP |
|---|---|---|
| ROE | -1.76% | 17.47% |
| ROIC | 9.13% | 7.55% |
| P/E | 86.21 | 68.18 |
| P/B | -151.35 | 11.91 |
| Current Ratio | 0.84 | 3.71 |
| Quick Ratio | 0.84 | 3.70 |
| D/E | -12.31 | 0.10 |
| Debt-to-Assets | 50.70% | 8.09% |
| Interest Coverage | 25.92 | N/A |
| Asset Turnover | 0.92 | 0.64 |
| Fixed Asset Turnover | 3.33 | 63.43 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
Wix’s negative ROE and high P/B ratio raise concerns about its profitability and market valuation, reflecting potential financial distress. On the other hand, Shopify demonstrates strong profitability, highlighted by a solid ROE and a healthy current ratio, indicating good liquidity. However, its high P/E ratio suggests that investors may be paying a premium for its growth potential, which carries inherent risks. Thus, while Shopify appears to be a more stable option, Wix’s financial metrics warrant caution.
Dividend and Shareholder Returns
Wix.com Ltd. (WIX) does not pay dividends, reflecting a reinvestment strategy aimed at fostering growth during its ongoing high-growth phase. The focus remains on enhancing its platform and expanding market share, aligning with long-term shareholder value creation. Despite the absence of dividends, WIX engages in share buybacks to return value to shareholders.
Conversely, Shopify Inc. (SHOP) also does not distribute dividends, prioritizing capital for research, development, and expansion efforts. This strategy underscores its commitment to sustainable growth, although it too implements share buybacks. Both companies’ approaches, while lacking immediate cash returns, support potential long-term value creation.
Strategic Positioning
In the competitive landscape of online services, Shopify Inc. (SHOP) holds a dominant market share with a valuation of approximately $206.8B, far surpassing Wix.com Ltd. (WIX), which stands at about $5.3B. Shopify’s comprehensive commerce platform attracts a diverse clientele, while Wix focuses on web development solutions. Both companies face competitive pressure from emerging technologies and new entrants, leading to potential disruptions. As an investor, I remain cautious, considering these dynamics as I assess future growth strategies.
Stock Comparison
In reviewing the stock price dynamics of Wix.com Ltd. (WIX) and Shopify Inc. (SHOP) over the past year, I observe significant price movements that reflect contrasting trading environments for these companies.
Trend Analysis
Over the past year, Wix.com Ltd. (WIX) has experienced a price change of -18.96%, indicating a bearish trend. The stock has shown notable deceleration, with a highest price of 240.89 and a lowest of 95.51. The standard deviation is 31.52, suggesting some volatility in its price movements. More recently, from September 14, 2025, to November 30, 2025, WIX’s price decreased by 44.23% with a trend slope of -7.04, further confirming the bearish trajectory.
In contrast, Shopify Inc. (SHOP) has recorded an impressive price change of +112.91% over the past year, establishing a bullish trend. The stock’s acceleration is currently decelerating, with a highest price of 173.86 and a lowest of 54.43. The standard deviation stands at 30.04, indicating moderate volatility. In the recent period from September 14, 2025, to November 30, 2025, SHOP’s price saw a positive change of 10.64% with a trend slope of 0.7, supporting its bullish outlook.
In summary, while WIX is trending downward with significant losses, SHOP exhibits robust growth, making it a more favorable option for investors currently.
Analyst Opinions
Recent analyst recommendations for Wix.com Ltd. (WIX) have been cautious, with a rating of C indicating a hold position. Analysts suggest concerns over its return on equity and debt-to-equity ratios, signaling potential risks. In contrast, Shopify Inc. (SHOP) has received a more favorable rating of B, with analysts highlighting strong return on assets and equity, suggesting a buy position. Overall, the consensus for SHOP leans toward a buy, while WIX remains a hold as I weigh these factors in my investment decisions.
Stock Grades
In this section, I present the latest stock ratings for Wix.com Ltd. and Shopify Inc., based on reliable data from recognized grading companies.
Wix.com Ltd. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Cantor Fitzgerald | maintain | Overweight | 2025-11-20 |
| Needham | maintain | Buy | 2025-11-20 |
| RBC Capital | maintain | Outperform | 2025-11-20 |
| Morgan Stanley | maintain | Overweight | 2025-11-20 |
| Scotiabank | maintain | Sector Outperform | 2025-11-20 |
| Oppenheimer | maintain | Outperform | 2025-11-20 |
| Wells Fargo | maintain | Overweight | 2025-11-20 |
| Evercore ISI Group | maintain | Outperform | 2025-11-20 |
| Citigroup | maintain | Buy | 2025-11-20 |
| Barclays | maintain | Overweight | 2025-11-20 |
Shopify Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | maintain | Neutral | 2025-11-05 |
| JP Morgan | maintain | Overweight | 2025-11-05 |
| Cantor Fitzgerald | maintain | Neutral | 2025-11-05 |
| Truist Securities | maintain | Hold | 2025-11-05 |
| Barclays | maintain | Equal Weight | 2025-11-05 |
| DA Davidson | maintain | Buy | 2025-11-05 |
| CIBC | maintain | Outperform | 2025-11-05 |
| Scotiabank | maintain | Sector Perform | 2025-11-05 |
| BMO Capital | maintain | Outperform | 2025-11-05 |
| Needham | maintain | Buy | 2025-11-05 |
Overall, Wix.com Ltd. retains strong grades across multiple firms, indicating sustained confidence in its performance. Conversely, Shopify Inc. displays a mix of neutral and positive ratings, suggesting a cautious but potential upward trajectory in investor sentiment.
Target Prices
The current target consensus for Wix.com Ltd. (WIX) and Shopify Inc. (SHOP) indicates optimistic growth potential.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Wix.com Ltd. | 210 | 135 | 184.3 |
| Shopify Inc. | 200 | 140 | 181.2 |
Analysts expect Wix to reach a consensus target of 184.3, significantly above its current price of 95.71, while Shopify’s consensus of 181.2 also suggests potential upside from its current price of 158.86.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Wix.com Ltd. (WIX) and Shopify Inc. (SHOP) based on the most recent financial data.
| Criterion | Wix.com Ltd. (WIX) | Shopify Inc. (SHOP) |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | Low (Net margin: 7.86%) | High (Net margin: 22.74%) |
| Innovation | High | High |
| Global presence | Strong | Strong |
| Market Share | Moderate | High |
| Debt level | Moderate (Debt/Equity: -12.31) | Low (Debt/Equity: 0.10) |
Key takeaways: Shopify exhibits higher profitability and lower debt levels compared to Wix, making it a more stable investment. Wix, while innovative, faces challenges in profitability and market share.
Risk Analysis
The table below summarizes the key risks associated with Wix.com Ltd. and Shopify Inc. as of the most recent year.
| Metric | Wix.com Ltd. | Shopify Inc. |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | High |
| Operational Risk | High | Moderate |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | Moderate |
In this analysis, the most significant risk for Wix.com is operational risk, stemming from its reliance on technological infrastructure, while Shopify faces regulatory challenges as it expands globally. Both companies must manage market volatility effectively.
Which one to choose?
When comparing Wix.com Ltd. (WIX) and Shopify Inc. (SHOP), the fundamentals indicate a clear distinction in performance and stability. Shopify, with a market cap of 138B, demonstrates a strong bullish trend, reflecting a 112.91% price change over the past year, while Wix shows a bearish trend with a -18.96% price change. Financially, Shopify boasts a net profit margin of 22.7% and a robust return on equity of 17.5%, contrasted with Wix’s lower margins and negative returns on equity.
Analyst ratings support this view, with Shopify receiving a grade of B, indicative of better growth prospects compared to Wix’s C rating. While Wix has a higher gross profit margin of 67.9% compared to Shopify’s 50.4%, its overall performance metrics suggest underlying vulnerabilities.
Recommendation: Investors focused on growth and potential returns may prefer Shopify, whereas those prioritizing stability should consider Wix, noting its higher gross margins but also the risks posed by a volatile market.
Specific risks include competition and market dependence, particularly for Shopify, which may impact its future growth trajectory.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Wix.com Ltd. and Shopify Inc. to enhance your investment decisions:
