Snowflake (NYSE:SNOW) and Shopify (NYSE:SHOP) are both large-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.
Analyst Ratings
This is a summary of current ratings and price targets for Snowflake and Shopify, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Snowflake | 2 | 14 | 8 | 0 | 2.25 |
Shopify | 1 | 14 | 14 | 0 | 2.45 |
Snowflake presently has a consensus target price of $284.9167, suggesting a potential upside of 18.85%. Shopify has a consensus target price of $1,287.6207, suggesting a potential upside of 13.85%. Given Snowflake's higher possible upside, equities analysts plainly believe Snowflake is more favorable than Shopify.
Insider & Institutional Ownership
23.2% of Snowflake shares are owned by institutional investors. Comparatively, 56.9% of Shopify shares are owned by institutional investors. 0.2% of Snowflake shares are owned by company 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.
Profitability
This table compares Snowflake and Shopify's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Snowflake | N/A | N/A | N/A |
Shopify | 7.99% | 2.35% | 2.03% |
Valuation & Earnings
This table compares Snowflake and Shopify's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Snowflake | N/A | N/A | N/A | N/A | N/A |
Shopify | $1.58 billion | 87.37 | $-124,840,000.00 | ($0.94) | -1,203.20 |
Snowflake has higher earnings, but lower revenue than Shopify.
Summary
Shopify beats Snowflake on 7 of the 9 factors compared between the two stocks.