eBay (EBAY) & Shopify (SHOP) Head to Head Analysis
eBay (NASDAQ: EBAY) and Shopify (NYSE:SHOP) are both mid-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.
This is a summary of current ratings and target prices for eBay and Shopify, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Insider & Institutional Ownership
86.1% of eBay shares are owned by institutional investors. Comparatively, 55.3% of Shopify shares are owned by institutional investors. 6.8% of eBay shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares eBay and Shopify’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
eBay has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Shopify has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.
Earnings & Valuation
This table compares eBay and Shopify’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|eBay||$8.98 billion||4.37||$7.27 billion||$6.74||5.58|
|Shopify||$389.33 million||22.86||-$35.35 million||($0.49)||-210.67|
eBay has higher revenue and earnings than Shopify. Shopify is trading at a lower price-to-earnings ratio than eBay, indicating that it is currently the more affordable of the two stocks.
eBay beats Shopify on 10 of the 13 factors compared between the two stocks.
eBay Inc. (eBay) is a commerce company, which operates through its Marketplace, StubHub and Classifieds platforms. The Company connects buyers and sellers around the world. Its platforms enable sellers around the world to organize and offer their inventory for sale, and buyers to find and purchase it. Its platforms are accessible through an online experience (desktop and laptop computers), from mobile devices (smartphones and tablets) and by application programming interface (API) (platform access for third-party software developers). The Company’s Marketplace platforms include its online marketplace located at www.ebay.com, localized counterparts and the eBay mobile applications. The Company’s StubHub platforms include its online ticket platform located at www.stubhub.com, the StubHub mobile applications and Ticketbis. The Company’s Classifieds platforms include a collection of brands, such as Mobile.de, Kijiji, Gumtree, Marktplaats, eBay Kleinanzeigen and others.
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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