SHOP vs. CSU, DSG, OTEX, KXS, LSPD, LWRK, ENGH, DCBO, CMG, and DND
Should you be buying Shopify stock or one of its competitors? The main competitors of Shopify include Constellation Software (CSU), The Descartes Systems Group (DSG), Open Text (OTEX), Kinaxis (KXS), Lightspeed Commerce (LSPD), LifeWorks (LWRK), Enghouse Systems (ENGH), Docebo (DCBO), Computer Modelling Group (CMG), and Dye & Durham (DND). These companies are all part of the "software - application" industry.
Constellation Software (TSE:CSU) and Shopify (TSE:SHOP) are both large-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk, media sentiment, earnings and community ranking.
Constellation Software received 423 more outperform votes than Shopify when rated by MarketBeat users. However, 65.16% of users gave Shopify an outperform vote while only 63.62% of users gave Constellation Software an outperform vote.
In the previous week, Shopify had 6 more articles in the media than Constellation Software. MarketBeat recorded 8 mentions for Shopify and 2 mentions for Constellation Software. Constellation Software's average media sentiment score of 0.35 beat Shopify's score of 0.00 indicating that Shopify is being referred to more favorably in the news media.
Constellation Software has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Shopify has a beta of 2.2, meaning that its stock price is 120% more volatile than the S&P 500.
Constellation Software presently has a consensus target price of C$4,008.33, indicating a potential upside of 5.73%. Shopify has a consensus target price of C$89.25, indicating a potential upside of 10.65%. Given Constellation Software's higher probable upside, analysts clearly believe Shopify is more favorable than Constellation Software.
Constellation Software has a net margin of 6.52% compared to Constellation Software's net margin of -2.82%. Shopify's return on equity of 9.53% beat Constellation Software's return on equity.
41.2% of Constellation Software shares are owned by institutional investors. Comparatively, 68.7% of Shopify shares are owned by institutional investors. 5.7% of Constellation Software shares are owned by company insiders. Comparatively, 0.2% of Shopify shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Constellation Software has higher revenue and earnings than Shopify. Shopify is trading at a lower price-to-earnings ratio than Constellation Software, indicating that it is currently the more affordable of the two stocks.
Summary
Constellation Software beats Shopify on 11 of the 18 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 TSE 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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