Best Stock to Buy: Apple vs. Shopify

Motley Fool2023-12-11

Electronics giant Apple and e-commerce platform Shopify have been big winners over the past five years. They've returned 355% and 387%, respectively, easily outperforming the stock market by a ratio ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2389868182?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2023-12-11 16:15","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2389868182","market":"us","top_or_hot":-1,"title":"Best Stock to Buy: Apple vs. Shopify","media":"Motley Fool","content":"<div>\n<p>Electronics giant Apple and e-commerce platform Shopify have been big winners over the past five years. They've returned 355% and 387%, respectively, easily outperforming the stock market by a ratio ...</p>\n\n<a href=\"https://www.fool.com/investing/2023/12/08/best-stock-to-buy-apple-vs-shopify/\">Source Link</a>\n\n</div>\n","source":"fool_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Best Stock to Buy: Apple vs. Shopify</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBest Stock to Buy: Apple vs. Shopify\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-12-11 16:15 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2023/12/08/best-stock-to-buy-apple-vs-shopify/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Electronics giant Apple and e-commerce platform Shopify have been big winners over the past five years. They've returned 355% and 387%, respectively, easily outperforming the stock market by a ratio ...</p>\n\n<a href=\"https://www.fool.com/investing/2023/12/08/best-stock-to-buy-apple-vs-shopify/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0109391861.USD","symbol_name":"富兰克林美国机遇基金A Acc","start_time":0,"source_url":"https://www.fool.com/investing/2023/12/08/best-stock-to-buy-apple-vs-shopify/","article_id":"2389868182","we_media_id":null,"thumbnails":[],"rights":{"source":"fool_stock","url":"https://www.fool.com/investing/2023/12/08/best-stock-to-buy-apple-vs-shopify/","rn_cache_url":null,"customStyle":"","selectors":".main-contain, #article-page","filters":"#sticky-wrapper, .navigation, .article-page-end, .foot, .author-tagline, .author-inline, .footer, .soc-share, .wysiwyg, .related-content","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2389868182","pubTimestamp":1702282532,"columns":[],"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"Both stocks have outperformed the market for years, but one could be getting too hot.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0109391861.USD":"富兰克林美国机遇基金A Acc","LU0289961442.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"AX\" (SGD) ACC","IE00B3S45H60.SGD":"Neuberger Berman US Multicap Opportunities A Acc SGD-H","LU1861559042.SGD":"日兴方舟颠覆性创新基金B SGD","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","BK4551":"寇图资本持仓","LU0149725797.USD":"汇丰美国股市经济规模基金","LU0011850046.USD":"贝莱德全球长线股票 A2 USD","BK4554":"元宇宙及AR概念","IE00BJTD4N35.SGD":"Neuberger Berman US Long Short Equity A1  Acc SGD-H","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","LU0390134368.USD":"FRANKLIN GLOBAL GROWTH \"A\" (USD) ACC","BK4532":"文艺复兴科技持仓","IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD","LU0289739343.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (SGD) ACC","BK4512":"苹果概念","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","BK4553":"喜马拉雅资本持仓","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","LU0097036916.USD":"贝莱德美国增长A2 USD","AAPL":"苹果","BK4116":"互联网服务与基础架构","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","LU0353189763.USD":"ALLSPRING  US ALL CAP GROWTH FUND \"I\" (USD) ACC","IE00BBT3K403.USD":"LEGG MASON CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A(USD) ACC","BK4534":"瑞士信贷持仓","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","LU0109392836.USD":"富兰克林科技股A","IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","BK4533":"AQR资本管理(全球第二大对冲基金)","SHOP":"Shopify Inc","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","LU1861558580.USD":"日兴方舟颠覆性创新基金B","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","BK4566":"资本集团","IE00BJTD4V19.USD":"NEUBERGER BERMAN US LONG SHORT EQUITY \"A1\" (USD) ACC","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","LU0082616367.USD":"摩根大通美国科技A（dist）","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","IE0009356076.USD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC","BK4515":"5G概念","BK4559":"巴菲特持仓","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","LU0353189680.USD":"富国美国全盘成长基金Cl A Acc","IE00BLSP4239.USD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis USD Plus","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","BK4550":"红杉资本持仓","BK4548":"巴美列捷福持仓"},"translate_title":"最佳买入股票：苹果与Shopify","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AAPL":1,"SHOP":1},"content_text":"Electronics giant Apple and e-commerce platform Shopify have been big winners over the past five years. They've returned 355% and 387%, respectively, easily outperforming the stock market by a ratio of roughly 4-to-1. That shouldn't be a surprise. Some 2 billion people use Apple's iOS devices, and Shopify's e-commerce platform has helped online shopping become a way of life in modern society.But that was then. You want to know about the future. Can both stocks keep their momentum up? And which is the better stock to own now? Let's take a closer look.How much are investors paying for cash profits?Apple and Shopify have little in common. One company makes and sells personal electronics; the other is a software company with a platform that helps merchants sell things online. However, free cash flow is the common trait that links all companies.AAPL Free Cash Flow Yield data by YChartsCash is the blood and oxygen circulating through a company, arguably the most important thing investors want to see. The critical question is: How can you invest your money to generate as much cash flow in return as possible? A company producing increasing cash flow will grow earnings, repurchase shares, pay dividends, or invest in growing the business -- all good things!Apple and Shopify generate cash flow although Apple's massive size stands out. It generates more free cash flow in a year than what Shopify's entire company is worth. But there's more to it. Investors should look at how much cash flow their money is buying.Apple stock is offering just over $0.03 of cash flow for every dollar of market cap at its current share price. That's a free-cash-flow yield of 3.3%. Shopify offers much less, a yield of just 0.5%. Off the jump, Apple stock is offering more bang for your buck.Adding some color to this pictureBut context is important because investors must also understand the dynamics around each company. Is there a reason investors aren't paying more for a piece of Apple's cash profits? A closer look reveals that Apple's become so big that it's struggling to grow.According to analyst estimates, Apple's annual revenue growth could average 3% to 7% for the next three years, and earnings could compound at 8% to 10%. Shopify has higher expectations; revenue could grow 20% annually, and earnings could compound at more than 30%.Long story short, people pay a premium for Shopify because the company is growing more rapidly. Apple may be arguably the most influential company on Earth, but it's also massive and might not produce the stellar investment results it once did.What's the verdict?If everything else were equal, investors would be wiser to take the faster-growing company in Shopify. The above discussion highlighted that. However, the price you pay for a stock matters.Shopify's 0.5% cash-flow yield is low enough to be problematic. Even if the company's cash flow doubles yearly, it would take several years to come close to what Apple offers today. In other words, the market could be overpaying for Shopify's growth.That huge value gap is why investors should consider Apple the better stock to buy until Shopify's valuation becomes more reasonable. Apple may have slower growth, but it's proven remarkably durable, and its nearly $100 billion in annual free cash flow is a war chest for creating shareholder value. That can enhance Apple's organic growth, a button Shopify can't currently press.Ultimately, both stocks are great investments at the right price, but Apple holds the edge today.","kind":"highlight","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.13","shortVersion":"4.35.13","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2389868182","isCrawlerRequest":true}