SHOP vs. CRM, ADBE, INTU, NOW, SNPS, CDNS, CRWD, NTES, PLTR, and SNOW
Should you be buying Shopify stock or one of its competitors? The main competitors of Shopify include Salesforce (CRM), Adobe (ADBE), Intuit (INTU), ServiceNow (NOW), Synopsys (SNPS), Cadence Design Systems (CDNS), CrowdStrike (CRWD), NetEase (NTES), Palantir Technologies (PLTR), and Snowflake (SNOW). These companies are all part of the "prepackaged software" industry.
Shopify (NYSE:SHOP) and Salesforce (NYSE:CRM) are both large-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation, risk, community ranking and media sentiment.
Salesforce has higher revenue and earnings than Shopify. Shopify is trading at a lower price-to-earnings ratio than Salesforce, indicating that it is currently the more affordable of the two stocks.
In the previous week, Salesforce had 53 more articles in the media than Shopify. MarketBeat recorded 78 mentions for Salesforce and 25 mentions for Shopify. Shopify's average media sentiment score of 0.71 beat Salesforce's score of 0.08 indicating that Shopify is being referred to more favorably in the media.
Salesforce received 1811 more outperform votes than Shopify when rated by MarketBeat users. Likewise, 82.68% of users gave Salesforce an outperform vote while only 66.73% of users gave Shopify an outperform vote.
Salesforce has a net margin of 15.30% compared to Shopify's net margin of -2.82%. Salesforce's return on equity of 11.57% beat Shopify's return on equity.
69.3% of Shopify shares are owned by institutional investors. Comparatively, 80.4% of Salesforce shares are owned by institutional investors. 3.2% of Salesforce shares are owned 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.
Shopify presently has a consensus target price of $76.74, indicating a potential upside of 24.34%. Salesforce has a consensus target price of $292.79, indicating a potential upside of 20.83%. Given Shopify's higher probable upside, research analysts plainly believe Shopify is more favorable than Salesforce.
Shopify has a beta of 2.27, meaning that its share price is 127% more volatile than the S&P 500. Comparatively, Salesforce has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.
Summary
Salesforce beats Shopify on 15 of the 19 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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