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.
Shopify (TSE:SHOP) and Constellation Software (TSE:CSU) are both large-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their risk, media sentiment, valuation, institutional ownership, earnings, community ranking, dividends, profitability and analyst recommendations.
Shopify has a beta of 2.2, meaning that its share price is 120% more volatile than the S&P 500. Comparatively, Constellation Software has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.
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.
Shopify presently has a consensus target price of C$89.25, suggesting a potential upside of 11.44%. Constellation Software has a consensus target price of C$4,008.33, suggesting a potential upside of 7.79%. Given Shopify's higher possible upside, research analysts clearly believe Shopify is more favorable than Constellation Software.
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.
68.7% of Shopify shares are held by institutional investors. Comparatively, 41.2% 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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Constellation Software has a net margin of 6.52% compared to Shopify's net margin of -2.82%. Constellation Software's return on equity of 9.53% beat Shopify's return on equity.
In the previous week, Shopify had 5 more articles in the media than Constellation Software. MarketBeat recorded 6 mentions for Shopify and 1 mentions for Constellation Software. Constellation Software's average media sentiment score of 0.57 beat Shopify's score of 0.36 indicating that Constellation Software is being referred to more favorably in the news media.
Summary
Constellation Software 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 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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