Shopify (SHOP) Competitors

Shopify (TSE:SHOP) and Constellation Software (TSE:CSU) are both large-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, media sentiment, profitability, earnings, risk and community ranking.

Which has more volatility and risk, SHOP or CSU?

Shopify has a beta of 2.36, indicating that its share price is 136% more volatile than the S&P 500. Comparatively, Constellation Software has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500.

Do analysts prefer SHOP or CSU?

Shopify presently has a consensus target price of C$125.00, indicating a potential downside of 16.40%. Constellation Software has a consensus target price of C$4,875.00, indicating a potential upside of 11.77%. Given Constellation Software's stronger consensus rating and higher probable upside, analysts plainly believe Constellation Software is more favorable than Shopify.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shopify	0 Sell rating(s)	1 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.50
Constellation Software	0 Sell rating(s)	2 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	2.86

Do insiders and institutionals have more ownership in SHOP or CSU?

70.3% of Shopify shares are held by institutional investors. Comparatively, 42.0% of Constellation Software shares are held by institutional investors. 0.2% of Shopify shares are held by insiders. Comparatively, 5.7% of Constellation Software shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Does the media favor SHOP or CSU?

In the previous week, Shopify and Shopify both had 5 articles in the media. Constellation Software's average media sentiment score of 0.70 beat Shopify's score of 0.44 indicating that Constellation Software is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Shopify	1 Very Positive mention(s)	2 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
Constellation Software	2 Very Positive mention(s)	2 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is SHOP or CSU more profitable?

Shopify has a net margin of 16.40% compared to Constellation Software's net margin of 7.00%. Constellation Software's return on equity of 15.93% beat Shopify's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Shopify	16.40%	15.31%	5.63%
Constellation Software	7.00%	15.93%	7.87%

Which has higher earnings and valuation, SHOP or CSU?

Shopify has higher earnings, but lower revenue than Constellation Software. Constellation Software is trading at a lower price-to-earnings ratio than Shopify, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shopify	C$7.76B	23.31	C$1.27B	C$1.37	109.14
Constellation Software	C$9.27B	9.97	C$649M	C$42.33	103.04

Does the MarketBeat Community favor SHOP or CSU?

Constellation Software received 428 more outperform votes than Shopify when rated by MarketBeat users. However, 64.64% of users gave Shopify an outperform vote while only 63.49% of users gave Constellation Software an outperform vote.

Company	Underperform	Outperform
Shopify	Outperform Votes 245 64.64%	Underperform Votes 134 35.36%
Constellation Software	Outperform Votes 673 63.49%	Underperform Votes 387 36.51%

Summary

Constellation Software beats Shopify on 11 of the 18 factors compared between the two stocks.