SHOP vs. CSU, DSG, OTEX, KXS, LSPD, DCBO, ENGH, DND, CMG, and TCS
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), Docebo (DCBO), Enghouse Systems (ENGH), Dye & Durham (DND), Computer Modelling Group (CMG), and Tecsys (TCS). 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 superior stock? We will compare the two companies based on the strength of their earnings, community ranking, institutional ownership, media sentiment, risk, valuation, dividends, profitability and analyst recommendations.
Shopify currently has a consensus price target of C$89.25, suggesting a potential upside of 4.52%. Constellation Software has a consensus price target of C$3,966.67, suggesting a potential upside of 3.65%. Given Shopify's higher probable upside, equities research analysts clearly believe Shopify is more favorable than Constellation Software.
Constellation Software has higher revenue and earnings than Shopify. 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.
Constellation Software has a net margin of 6.72% compared to Shopify's net margin of 1.87%. Constellation Software's return on equity of 3.18% beat Shopify's return on equity.
Shopify has a beta of 2.2, suggesting that its stock price is 120% more volatile than the S&P 500. Comparatively, Constellation Software has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.
In the previous week, Shopify had 15 more articles in the media than Constellation Software. MarketBeat recorded 18 mentions for Shopify and 3 mentions for Constellation Software. Constellation Software's average media sentiment score of 0.41 beat Shopify's score of 0.29 indicating that Constellation Software is being referred to more favorably in the news media.
69.6% of Shopify shares are held by institutional investors. Comparatively, 40.5% of Constellation Software shares are held by institutional investors. 0.2% of Shopify shares are held by company insiders. Comparatively, 5.7% of Constellation Software shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Constellation Software received 422 more outperform votes than Shopify when rated by MarketBeat users. However, 65.16% of users gave Shopify an outperform vote while only 63.65% of users gave Constellation Software an outperform vote.
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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