Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD) and Dye & Durham (TSX:DND) have both seen shares rise 70% during the last month. After a market correction of 10.8% by mid-May, shares started rising. But whereas other tech stocks continue to suffer, Lightspeed stock and Dye & Durham stock have been climbing.
Today, let’s look at both of these growth stocks and see which is a better buy on the TSX today.
Lightspeed stock
Shares of Lightspeed stock have fallen ever since last September, when a short-seller report accused the company of hiding metrics behind “smoke and mirrors.” This led to several moves by the company and another fall thanks to the drop in tech stocks.
Today, it’s a different story. Lightspeed stock has several things going for it these days. First, it has a new chief executive officer, allowing shareholders to feel serious change is on the way. More than that, all the acquisitions it’s made are being integrated and bringing in earnings. Finally, it’s one of the few e-commerce companies doing well in the post-pandemic environment.
Lightspeed stock doesn’t just rely on e-commerce revenue but also retail and restaurants. With more in-store sales, this has proven beneficial for the company. Now, the company declares it should see profit by 2024.
Shares of Lightspeed stock fell 60% between January and mid-May and are now up 70% as of writing.
Dye & Durham stock
Similar to Lightspeed stock, Dye & Durham stock has also had a big fall followed by a great rebound. In the case of DND, it saw shares soar back in October but started to fall thanks to two avenues. With inflation rising, the company had to boost its software prices by leaps and bounds. This caused both consumers and investors to get pretty ticked off.
Then the fall of growth stocks in the tech sector led Dye & Durham stock to all but collapse. As Lightspeed stock fell, DND fell right along with it but by an even more dramatic margin in the last few months. The company has fallen 71% between January and mid-May from $43 to $13.
But again, there have been a few changes for the company. We’ve seen more acquisitions come online, more major long-term partnerships with stable companies like the Big Six banks, and it seems the product price boost is at least somewhat behind it.
Shares of Dye & Durham stock have since climbed 66%, down from the 70% it achieved a few days ago.
Bottom line
Analysts believe both Dye & Durham stock and Lightspeed stock should double within the next year. The companies were severely oversold, and now there should be quite the rebound. But the question is about long-term revenue.
In this case, I actually think Dye & Durham stock has a better change of long-term success. The company creates partnerships with government agencies, financial institutions, law firms, and other stable businesses. It’s also taken the growth-through-acquisition approach on as well, which has been a proven path to revenue by many other growth stocks.
While I wouldn’t stay away from Lightspeed stock at these values, if you’re looking for a long-term buy on the TSX today, I’d consider Dye & Durham stock first.
