Cnova NV (NASDAQ: CNV) and Shopify (NYSE:SHOP) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Institutional and Insider Ownership

3.0% of Cnova NV shares are owned by institutional investors. Comparatively, 53.8% of Shopify shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Cnova NV and Shopify’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cnova NV -3.30% N/A -6.49%
Shopify -8.96% -8.26% -7.14%

Earnings & Valuation

This table compares Cnova NV and Shopify’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cnova NV N/A N/A N/A ($0.94) -5.64
Shopify $509.00 million 23.10 -$34.47 million ($0.51) -233.90

Cnova NV has higher revenue, but lower earnings than Shopify. Shopify is trading at a lower price-to-earnings ratio than Cnova NV, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Cnova NV and Shopify, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cnova NV 0 1 0 0 2.00
Shopify 1 16 20 0 2.51

Shopify has a consensus price target of $93.76, indicating a potential downside of 21.40%. Given Shopify’s stronger consensus rating and higher probable upside, analysts plainly believe Shopify is more favorable than Cnova NV.

Volatility and Risk

Cnova NV has a beta of 2.64, meaning that its stock price is 164% more volatile than the S&P 500. Comparatively, Shopify has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.

Summary

Shopify beats Cnova NV on 6 of the 10 factors compared between the two stocks.

About Cnova NV

Cnova N.V. is an e-commerce company with its two markets in France and Brazil. The Company offers differentiated delivery and payment solutions. It operates through three segments: Cdiscount France, Cdiscount International and Cnova Brazil. The Cdiscount France segment is engaged in the retail sales of consumer products through Cdiscount.com and specialized Websites in France. The Cdiscount International segment is engaged in retail sales of consumer products through Websites created by Cdiscount S.A. (Cdiscount) outside of France. The Cnova Brazil segment is engaged in retail sales of consumer products through Websites in Brazil, including Extra.com.br, PontoFrio.com.br, CasasBahia.com.br, Barateiro.com.br, PartiuViagens.com.br, and wholesale activities and E-Hub. As of December 31, 2015, it offered over 29 million product offerings on its sites through its direct sales and marketplace businesses across various categories, such as consumer electronics, home appliances and computers.

About Shopify

Shopify Inc. (Shopify) provides a cloud-based, multi-channel commerce platform designed for small and medium-sized businesses. The Company offers subscription solutions and merchant solutions. The Company’s software is used by merchants to run their business across all of their sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts and marketplaces. The Shopify platform provides merchants with a single view of their business and customers across all of their sales channels and enables them to manage products and inventory, process orders and payments, ship orders, build customer relationships and leverage analytics and reporting all from one integrated back office. The Shopify platform includes a mobile-optimized checkout system, which is designed to enable merchants’ consumers to buy products over mobile Websites. Its merchants are able to offer their customers the ability to check out by using Apple Pay.

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