Q: Which would you pick today for a growth oriented investor Shop or VNP in today’s turbulent market. Which is best equipped to handle this type of environment going forward? Would you have another suggestion to add?
Thank you
Dan
Thank you
Dan
5i Research Answer:
SHOP and VNP are of course very different. We like VNP but its success is only quite recent. The stock was a dog for more than a decade. It is also massively smaller. Its business is in the right 'zone' right now, and momentum is positive. It is not tied to consumer sentiment. Its small size gives it leverage on good news. Still, we would side with SHOP in a straight up contest: safer, global market share, massive cash position, long term execution record. VNP will probably outperform in the short term, but we think SHOP is better overall.