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.
Shopify (NYSE:SHOP) and Cadence Design Systems (NASDAQ:CDNS) are both large-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, media sentiment, community ranking, earnings and profitability.
69.3% of Shopify shares are owned by institutional investors. Comparatively, 84.9% of Cadence Design Systems shares are owned by institutional investors. 0.6% of Cadence Design Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
In the previous week, Shopify had 1 more articles in the media than Cadence Design Systems. MarketBeat recorded 29 mentions for Shopify and 28 mentions for Cadence Design Systems. Cadence Design Systems' average media sentiment score of 0.54 beat Shopify's score of 0.52 indicating that Cadence Design Systems is being referred to more favorably in the news media.
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 Shopify's net margin of -2.82%. Cadence Design Systems' return on equity of 32.44% beat Shopify's return on equity.
Cadence Design Systems has lower revenue, but higher earnings 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.
Shopify has a beta of 2.2, meaning that its share price is 120% more volatile than the S&P 500. Comparatively, Cadence Design Systems has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.
Shopify currently has a consensus target price of $76.86, indicating a potential upside of 30.44%. Cadence Design Systems has a consensus target price of $326.11, indicating a potential upside of 11.50%. Given Shopify's higher probable upside, equities research analysts clearly believe Shopify is more favorable than Cadence Design Systems.
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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