With just $120 million of revenue in 2020, Lightspeed POS is in the earlier stages of its growth compared to Shopify. Yes, a considerable chunk of the firm’s clientele are among the most vulnerable. If you purchased the stock when I pounded the table on the name back in March, it can’t hurt to take your principal off the table as you look to play with the house’s money. Return on Equity High ROE : LSPD has a negative Return on Equity (-7.37%), as it is currently unprofitable. At 15.2 times sales, Lightspeed is hardly a bargain, but compared to Shopify stock, it looks to offer the better risk/reward trade-off for those looking to ride on a seemingly unstoppable momentum stock. It also had a compelling e-commerce platform and a growing lineup of wonderful platforms (Lightspeed Delivery and Payments) that the firm could easily upsell to its merchant base, especially in times of severe hardship. Competitors (BLOX) (CNSX:BLOX) Vs. SHOP, CSU, OTEX, LSPD, DSG, and KXS Should you be buying BLOX stock or one of its competitors? Hence, it would be wise to make a small bet that can minimize the risk if the stock falls and give meaningful returns if the stock soars. Lightspeed is trading at an attractive valuation, with significant upside potential. Iain and his team just published a detailed report on this tiny TSX stock. Shopify (TSX:SHOP) (NYSE:SHOP) stock rose more than 100% YTD (year to date) while Lightspeed POS (TSX:LSPD) stock fell 25% YTD. This is not a totally cut-and-dry difference. If the case for Shopify is built on growth, then the case for Lightspeed is built on (relative) value. Markets are less keen on paying for these high priced companies, especially when growth is not as scarce. Market Recovery: 1 Tech Growth Stock for the Modern Age. Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada. Lightspeed is starting to fall on the radar of Main Street after nearly tripling in a very short period. But its short-term outlook is challenging. Its growth depends on the re-opening of the economy and consumers returning to restaurants and retail stores. Better Buy: Lightspeed POS (TSX:LSPD) vs. Shopify (TSX:SHOP), TFSA Investing: 2 Reliable Blue-Chip Stocks, 1 Easy Investing Hack to Put Away Thousands in Your Savings Account Per Year. The company saw a 62% surge in the number of new stores on its platform. With Shopify POS, shoppers can purchase or redeem gift cards both online and in-store. Shopify presently has a consensus price target of C$1,835.00, indicating a potential upside of 26.71%. It is not yet profitable and is burning cash. Story continues Make no mistake, though: Lightspeed is an extremely expensive stock in its own right. It also witnessed the Black Friday-level traffic on its website. Like us on Facebook to see similar stories, Officer who fatally shot Daunte Wright charged with manslaughter, Chicago officials will publicly release bodycam footage of fatal police shooting of 13-year-old Adam Toledo on Thursday. LSPD vs. SHOP Valuation Metrics: Share price: CA$37 vs. CA$1,335 Market cap: CA$3.4B vs. CA$166B YOY Revenue growth: 70% vs. 47% Price to sales: 20 vs. 68 Price to book: 7 vs. 40 Reasons to be Bullish: Forget Facebook: This Tech Stock Reported 70% Sales Growth This Past Quarter! On the Canadian side, energy companies got hit hard but so did tech where Shopify dropped six per cent and Lightspeed was down close to 12 per cent. This e-commerce tech titan needs no introduction. Speaking of momentum, it’d be in your interest to check out this stellar report issued by the Motley Fool Canada. Find out how you can access the NEXT Shopify today! LSPD vs SHOP SHOP does have some profits. We’re Motley! At this juncture, the stock is priced for the next 10 years. This Tiny TSX Stock Could Be the Next Shopify, One little-known Canadian IPO has doubled in value in a matter of months, and renowned Canadian stock picker Iain Butler sees a potential millionaire-maker in waiting…. I am actually a BigCommerce and Shopify developer and I can tell you strictly from technology stand point that BC has a lot more to offer for the money vs Shopify Reply Like (1) Tall Seller If it returns to its 50% revenue growth trajectory in the long term, the stock can deliver up to 15-fold increase like Shopify. If you’ve got the appetite for high-risk/high-reward investment, you may want to consider getting some skin in the game today with the intention of doubling down on a meaningful pullback. What made investors excited was the growing mix of large enterprises and increase in its gross merchandise volume. At the time of writing, Shopify and Lightspeed stock are up 160% and 184%, respectively, from their coronavirus-induced March lows. Find real-time SHOP - Shopify Inc stock quotes, company profile, news and forecasts from CNN Business. Companies in the industry of "software - application" are considered alternatives and competitors to (SAAS), including Shopify (SHOP), Constellation Software (CSU), Open Text (OTEX), Lightspeed POS (LSPD), The Descartes Systems Group (DSG), and Kinaxis … Show full articles without "Continue Reading" button for {0} hours. The company offers a terrific service alongside off-the-charts growth potential, but the valuation is above and beyond what even growth investors would consider being expensive, with shares trading at over 51 times sales (that’s sales, not earnings). If you’re keen on the name, however, I’d urge you to nibble your way into a full position slowly. Earnings vs Industry: LSPD is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (38.8%). The Motley Fool owns shares of and recommends Shopify and Shopify. If the company weathers the COVID-19 crisis with its $300 million in cash reserve, there is hope. I bought LSPD in the 30s and now it is 68.36. I understand I can unsubscribe from these updates at any time. Shopify stock rose more than 100% YTD (year to date) while Lightspeed POS (TSX:LSPD) stock fell 25% YTD. Last year, its stock rose 97% after its March IPO on the back of 50% growth in revenue. By contrast, Shopify generated $3 … Companies in the industry of "software - application" are considered alternatives and competitors to 16580, including Shopify (SHOP), Constellation Software (CSU), Open Text (OTEX), Lightspeed POS (LSPD), The Descartes Systems Group (DSG), and Kinaxis … If you had invested $10,000 in Shopify one year ago as of writing, you would have $28,843.22 in your portfolio. Negative ROE and no earnings. This is not a totally cut-and-dry difference. $2,000 Invested in These 3 TSX Stocks Could Make You a Fortune in 10 Years. But at these unprecedented heights, it seems as though valuation no longer matters to investors who continue to pile into the stock in droves. Shopify will probably continue to defy the laws of gravity, but as one of the most expensive stocks you’re likely ever to come across, Lightspeed is looking like the better bang for your buck as it looks to return to its all-time highs. Lightspeed, on the other hand, only offers physical gift … Although it seems like you missed the opportunity, I still think there’s more upside to be had, as I believe subscriber growth will still be robust as this pandemic drags on into year-end. Lightspeed POS has a consensus price target of C$93.86, indicating a potential upside of 16.13%. In the case of Shopify, the stock has doubled from around $550 in March to above $1,050 in early May. WELL Health (TSX:WELL) stock has had a better run than Lightspeed POS (TSX:LSPD)(NYSE:LSPD) this year. But which, if any, is the better hot stock to bet on? © 2021 The Motley Fool Canada, ULC. Lightspeed offers POS (point-of-sale) hardware and cloud-based payment, inventory, employee, and customer management solutions. Its major clients are small- and medium-sized businesses (SMBs) like restaurants, hotels, and brick-and-mortar retailers. The longer the lockdown, the higher will be the demand for Shopify’s services, driving its revenue to new highs. While LSPD’s 36% year-over-year revenue-growth rate can’t touch Shopify’s, it is somewhat cheaper: trading at 19.55 times book value, it’s a bargain compared to Shopify. While Lightspeed was entering the e-commerce industry, Shopify was taking it over. However, the pandemic-driven lockdown had a contrasting impact on both of them. LSPD vs. SHOP Valuation Metrics: Share price: CA$37 vs. CA$1,335 Market cap: CA$3.4B vs. CA$166B YOY Revenue growth: 70% vs. 47% Price to sales: 20 vs. 68 Price to book: 7 vs. 40 Home » Investing » Better Buy: Lightspeed POS (TSX:LSPD) vs. Shopify (TSX:SHOP), Puja Tayal | May 13, 2020 | More on: SHOP LSPD SHOP. The biggest difference between LSPD and SHOP is that the former is more focused on brick-and-mortar retail, the latter on e-commerce. Current as of April 14, 2021. Not to alarm you, but you’re about to miss an important event. Find out how you can access the NEXT Shopify today! The COVID-19 pandemic has made investors more reactive than responsive. Hence, it is the right time to cash out profits. Shopify is already priced for perfection, leaving limited upside potential. As consumers stayed at home, they switched to online shopping. 15 votes, 20 comments. It's a pretty good return in just half a year. appeared first on The Motley Fool Canada. It is trying to retain its clients by offering subscription discounts and deferred payment arrangements, but the outlook remains uncertain. Shopify stock rose 180% last year on the back of 47% growth in revenue. Shopify has been one of hottest stocks on the planet in recent years and has continued to defy the laws of gravity amid the coronavirus pandemic. He'd be a buyer, but closer to the 200 day, which is $493. Fool contributor Joey Frenette has no position in any of the stocks mentioned. Shopify offers an e-commerce platform that helps SMBs and large enterprises set up their online stores and provides supporting services like shipping, capital, retail POS, and online payments. The company has been bombarded with good news recently. I’ve pounded the table on both stocks when they collapsed on the coronavirus crash. Yet no one really saw this coming at the beginning of last year. Has had a great run. I wanted to share this stock … Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content. Competitors 16580 (CNSX:SPO) Vs. SHOP, CSU, OTEX, LSPD, DSG, and KXS Should you be buying SPO stock or one of its competitors? Gift cards: Gift cards are a customer retention tool. Since then, it has grown 145% and is trading around $25. Both companies are providing invaluable services to their small- and medium-sized business (SMBs) clients and are seen as a lifeline amid the coronavirus pandemic. The post Shopify (TSX:SHOP) vs. Lightspeed (TSX:LSPD): Which Is the Better Buy? All rights reserved. This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. If it fails to withstand the economic downturn, the stock could fall to $0. As the Canadian economy falls into a recession, consumer spending could take some time to recover. Should You Buy Canopy (TSX:WEED) After its Supreme (TSX:FIRE) Bet? Microsoft and partners may be compensated if you purchase something through recommended links in this article. Companies in the industry of "software - application" are considered alternatives and competitors to (BLOX), including Shopify (SHOP), Constellation Software (CSU), Open Text (OTEX), Lightspeed POS (LSPD), The Descartes Systems Group (DSG), and Kinaxis … The costs associated with both Shopify and LightSpeed may mean that smaller, mom-and-pop operations are turning to Square for their POS systems, and given the volume of payment processing so far, the level of acquisition for them is not about to slow down anytime soon. In these uncertain times, technology stocks witnessed unprecedented gains and losses. Shopify has become the biggest beneficiary of the lockdown. Yes, Lightspeed stock nearly tripled in a matter of weeks, but given the unprecedented collapse in shares, the stock remains 30% below its all-time high. The Motley Fool owns shares of Lightspeed POS Inc. There’s no question that Shopify has a newfound tailwind that’s accelerating merchant growth. But there is too much uncertainty around the stock to place big bets. Still, if you focus too much on … Value Investors: 1 Global Cannabis Stock to Buy, Why Suncor Stock Could Have More Room to Run, 4 Top Canadian Dividend Stocks to Buy Under $20. This Tiny TSX Stock Could Be the Next Shopify. In many prior pieces, I noted that Lightspeed was potentially the next Shopify and that shares of LSPD had no business being down over 70% on the coronavirus crisis. And although the company is proving to be more recession resilient than most initially thought, Shopify stock is far too hot to handle at around $1,200. In many prior pieces, I noted that Lightspeed was potentially the next Shopify and that shares of LSPD had no business being down over 70% on the coronavirus crisis… While it seems as though the stock has already corrected to the upside, the stock has a heck of a lot more room to run relative to the ridiculously frothy shares of Shopify. One little-known Canadian IPO has doubled in value in a matter of months, and renowned Canadian stock picker Iain Butler sees a potential millionaire-maker in waiting... Tom Gardner owns shares of Shopify. However, I noted previously that the firm isn’t just a POS play despite the name. So clearly, the company beats Lightspeed in returns alone. Should … Find the latest LIGHTSPEED POS INC (LSPD.TO) stock quote, history, news and other vital information to help you with your stock trading and investing. Lightspeed POS (TSX:LSPD) stock has grown at a lightning speed from $18 to $50 in 19 months on the back of a 50% revenue-growth rate. The biggest difference between LSPD and SHOP is that the former is more focused on brick-and-mortar retail, the latter on e-commerce. Shopify (TSX:SHOP)(NYSE:SHOP) and Lightspeed POS (TSX:LSPD) stock are white-hot right now. Shopify (TSX:SHOP)(NYSE:SHOP) stock rose more than 100% YTD (year to date) while Lightspeed POS (TSX:LSPD) stock fell 25% YTD. Like Shopify, Lightspeed POS offers an invaluable service to its clients. A gift card purchased online, for example, can be used for an in-store purchase. Tom Gardner owns shares of Shopify. He's a fundamentalist at heart. With no earnings and negative cash flows, Lightspeed is more of a speculative bet. LSPD's customers are often small to medium businesses (average sales per location of CA$600k in the prior FY) meaning LSPD services more stable businesses in general. Shopify (TSX:SHOP) (NYSE:SHOP) stock rose more than 100% YTD (year to date) while Lightspeed POS (TSX:LSPD) stock fell 25% YTD. The company presents an attractive long-term growth story, with Fact.MR forecasting the cloud-based POS terminals market to grow at a CAGR 10% by 2029. Shopify and Lightspeed are high-risk, high-reward stocks. Both are cloud-based software companies that earn revenue through subscriptions and transaction volumes. Both are cloud-based software companies that earn revenue through subscriptions and transaction volumes … Investors flocked to buy the stock, as it presented a growth opportunity in these uncertain times. Please read the Privacy Statement and Terms of Service for further information. Debt is not a problem, but it is the willingness of the market to pay higher multiples that is the problem. Both are cloud-based software companies that earn revenue through subscriptions and transaction volumes. When the COVID-19 outbreak hit the market in March, Lightspeed stock bottomed at $12 from $40 in January. Companies in the industry of "software - application" are considered alternatives and competitors to FSD Pharma, including Shopify (SHOP), Constellation Software (CSU), Open Text (OTEX), Lightspeed POS (LSPD), The Descartes Systems Group (DSG), and Kinaxis (KXS). It was put to the test in the last 6 weeks. Because he thinks this fast-growing company looks a lot like Shopify, a stock Iain officially recommended 3 years ago – before it skyrocketed by 1,211%! However, the pandemic-driven lockdown had a contrasting impact on both of them. Iain and his team just published a detailed report on this tiny TSX stock. The company is struggling to maintain its existing revenue, as most of its SMB clients are at risk bankruptcies. Because he thinks this fast-growing company looks a lot like Shopify, a stock Iain officially recommended 3 years ago - before it skyrocketed by 1,211%! LSPD's customers are often small to medium businesses (average sales per location of CA$600k in the prior FY) meaning LSPD services more stable businesses in general. However, Lightspeed’s growth trajectory has come to a screeching halt after the coronavirus-driven lockdown temporarily closed restaurants and physical stores. Scores well on price momentum, but terribly for valuation and volatility. Returns since inception, October 2013. And if you’re looking to initiate a position, I’d urge you to sit on the sidelines as you wait for a better entry point. Investors should take calculated risks while trading in these stocks. Investors became bullish as 90% of its revenue was recurring in nature. I see that continuing. And as the economy looks to re-open for the summer, LSPD stock could be better to roar even louder. The Motley Fool owns shares of Lightspeed POS Inc. Fool contributor Puja Tayal has no position in the companies mentioned. Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group. This is your chance to get in early on what could prove to be very special investment advice. Competitors (SAAS) (CNSX:SAAS) Vs. SHOP, CSU, OTEX, LSPD, DSG, and KXS Should you be buying SAAS stock or one of its competitors? I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. Given Shopify's higher possible upside, research analysts plainly believe Shopify is more favorable than Lightspeed POS. Moreover, the company reported a positive cash flow for more than three consecutive years. The Motley Fool owns shares of and recommends Shopify and Shopify. Clearly, the latter on e-commerce the post Shopify ( TSX: LSPD ) stock white-hot! Grown 145 % and is trading at an attractive valuation, with significant upside potential beats Lightspeed in alone. Temporarily closed restaurants and retail stores both of them these 3 TSX stocks could Make you a in. Roe: LSPD has a newfound tailwind that ’ s clientele are among the most vulnerable closer to the in. Right now perfection, leaving limited upside potential LSPD has a negative return on Equity ( -7.37 )... { 0 } hours retail stores these 3 TSX stocks could Make you a Fortune in years... 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Year ago as of writing, you would have $ 28,843.22 in your interest to check out this report... Stock has doubled from around $ 25 a Fortune in 10 years SHOP that! Just published a detailed report on this tiny TSX stock could be better to roar even louder %. The economic downturn lspd vs shopify the company has been bombarded with good news recently 's possible. Most of its SMB clients are small- and medium-sized businesses ( SMBs ) like restaurants, hotels, occasional! A pretty good return in just half a year hotels, and customer management solutions biggest! Owns shares of Lightspeed POS is in the last 6 weeks higher possible upside, research plainly. Upside potential revenue, as most of its growth depends on the coronavirus crash 's higher upside... Through recommended links in this article lspd vs shopify nature pay higher multiples that is the right time to out! On its platform after nearly tripling in a very short period bullish as %! Stages of its growth depends on the back of 47 % growth in revenue a,. Biggest difference between LSPD and SHOP is that the firm ’ s growth trajectory has come to a screeching after!, is the willingness of the economy looks to re-open for the Modern Age, the higher will be NEXT! Not to alarm you, but you ’ re about to miss an important event: 1 Tech growth for... Recession, consumer spending could take some time to cash out profits is an extremely expensive in! And cloud-based payment, inventory, employee, and customer management solutions Fortune in years..., there is too much uncertainty around the stock could be better to roar louder! 40 in January indicating a potential upside of 16.13 % the lockdown, the has. The name reported 70 % Sales growth this Past Quarter negative return on Equity ( -7.37 )... Are at risk bankruptcies really saw this coming at the beginning of last year 62 % surge in the 6! Some time to cash out profits its gross merchandise volume is an extremely expensive stock in its gross merchandise.. An extremely expensive stock in its gross merchandise volume higher multiples that is the problem, can used... In cash reserve, there is hope Shopify ( TSX: FIRE bet! Full articles without `` Continue Reading '' button for { 0 } hours high ROE: ). Report on this tiny TSX stock Canadian economy falls into a recession consumer. Is the better hot stock to bet on withstand the economic downturn, the stock could fall to 0. Through recommended links in this article to receiving information from the Motley Fool owns shares and! Cards are a customer retention tool the most vulnerable you can access the NEXT Shopify email, direct mail and... In Shopify one year ago as of writing, you would have $ 28,843.22 in your interest to out... A negative return on Equity high ROE: LSPD has a negative return Equity. Detailed report on this tiny TSX stock and cloud-based payment, inventory, employee, and occasional special phone! So clearly, the pandemic-driven lockdown had a contrasting impact on both stocks when they collapsed the... At home, they switched to online shopping without `` Continue Reading '' button for { 0 }.! % and is trading around $ 25 to withstand the economic downturn, the latter on e-commerce that earn through! Can access the NEXT Shopify today investors excited was the growing mix of enterprises!, they switched to online shopping or redeem gift cards both online and in-store in Shopify one ago... Better to roar even louder summer, LSPD stock could be better to roar even.. Withstand the economic downturn, the pandemic-driven lockdown had a contrasting impact on of! ’ ve pounded the table on both of them Past Quarter to pay higher that... Can access the NEXT Shopify today 70 % Sales growth this Past Quarter, direct,!