SHOP vs. CRM, ADBE, INTU, NOW, SNPS, CRWD, CDNS, NTES, SNOW, and PLTR
Should you be buying Shopify stock or one of its competitors? The main competitors of Shopify include Salesforce (CRM), Adobe (ADBE), Intuit (INTU), ServiceNow (NOW), Synopsys (SNPS), CrowdStrike (CRWD), Cadence Design Systems (CDNS), NetEase (NTES), Snowflake (SNOW), and Palantir Technologies (PLTR). These companies are all part of the "prepackaged software" industry.
Salesforce (NYSE:CRM) and Shopify (NYSE:SHOP) are both large-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, community ranking, institutional ownership, analyst recommendations and media sentiment.
Salesforce has higher revenue and earnings than Shopify. Shopify is trading at a lower price-to-earnings ratio than Salesforce, indicating that it is currently the more affordable of the two stocks.
Salesforce has a net margin of 15.30% compared to Salesforce's net margin of -2.82%. Shopify's return on equity of 11.57% beat Salesforce's return on equity.
Salesforce received 1811 more outperform votes than Shopify when rated by MarketBeat users. Likewise, 82.68% of users gave Salesforce an outperform vote while only 66.76% of users gave Shopify an outperform vote.
80.4% of Salesforce shares are owned by institutional investors. Comparatively, 69.3% of Shopify shares are owned by institutional investors. 3.2% of Salesforce shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
In the previous week, Salesforce had 129 more articles in the media than Shopify. MarketBeat recorded 157 mentions for Salesforce and 28 mentions for Shopify. Salesforce's average media sentiment score of 0.53 beat Shopify's score of 0.01 indicating that Shopify is being referred to more favorably in the news media.
Salesforce presently has a consensus target price of $292.79, suggesting a potential upside of 24.89%. Shopify has a consensus target price of $77.06, suggesting a potential upside of 30.27%. Given Salesforce's higher possible upside, analysts clearly believe Shopify is more favorable than Salesforce.
Salesforce has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Shopify has a beta of 2.2, indicating that its share price is 120% more volatile than the S&P 500.
Summary
Salesforce beats Shopify on 15 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding SHOP and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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