SHOP vs. CDNS, CRWD, SNPS, NTES, SNOW, TEAM, ADSK, DDOG, VEEV, and HUBS
Should you be buying Shopify stock or one of its competitors? The main competitors of Shopify include Cadence Design Systems (CDNS), CrowdStrike (CRWD), Synopsys (SNPS), NetEase (NTES), Snowflake (SNOW), Atlassian (TEAM), Autodesk (ADSK), Datadog (DDOG), Veeva Systems (VEEV), and HubSpot (HUBS). These companies are all part of the "prepackaged software" industry.
Cadence Design Systems (NASDAQ:CDNS) and Shopify (NYSE:SHOP) are both large-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their community ranking, profitability, analyst recommendations, media sentiment, earnings, institutional ownership, dividends, valuation and risk.
Cadence Design Systems presently has a consensus price target of $326.11, suggesting a potential upside of 12.92%. Shopify has a consensus price target of $76.86, suggesting a potential upside of 31.33%. Given Cadence Design Systems' higher probable upside, analysts plainly believe Shopify is more favorable than Cadence Design Systems.
Cadence Design Systems has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Shopify has a beta of 2.2, suggesting that its share price is 120% more volatile than the S&P 500.
84.9% of Cadence Design Systems shares are owned by institutional investors. Comparatively, 69.3% of Shopify shares are owned by institutional investors. 2.0% of Cadence Design Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Shopify received 794 more outperform votes than Cadence Design Systems when rated by MarketBeat users. However, 71.18% of users gave Cadence Design Systems an outperform vote while only 66.73% of users gave Shopify an outperform vote.
Cadence Design Systems has a net margin of 25.68% compared to Cadence Design Systems' net margin of -2.82%. Shopify's return on equity of 32.44% beat Cadence Design Systems' return on equity.
In the previous week, Shopify had 15 more articles in the media than Cadence Design Systems. MarketBeat recorded 41 mentions for Shopify and 26 mentions for Cadence Design Systems. Shopify's average media sentiment score of 0.47 beat Cadence Design Systems' score of 0.43 indicating that Cadence Design Systems is being referred to more favorably in the media.
Cadence Design Systems has higher earnings, but lower revenue than Shopify. Shopify is trading at a lower price-to-earnings ratio than Cadence Design Systems, indicating that it is currently the more affordable of the two stocks.
Summary
Cadence Design Systems beats Shopify on 12 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 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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