SHOP vs. CRM, ADBE, INTU, NOW, SNPS, CRWD, CDNS, NTES, SNOW, and PLTR
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), CrowdStrike (CRWD), Cadence Design Systems (CDNS), NetEase (NTES), Snowflake (SNOW), and Palantir Technologies (PLTR). These companies are all part of the "prepackaged software" industry.
Salesforce (NYSE:CRM) and Shopify (NYSE:SHOP) are both large-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, media sentiment, profitability, dividends, analyst recommendations, risk, valuation, community ranking and institutional ownership.
In the previous week, Salesforce had 23 more articles in the media than Shopify. MarketBeat recorded 51 mentions for Salesforce and 28 mentions for Shopify. Salesforce's average media sentiment score of 0.58 beat Shopify's score of 0.48 indicating that Shopify is being referred to more favorably in the news media.
Salesforce has a net margin of 11.87% compared to Salesforce's net margin of -2.82%. Shopify's return on equity of 10.42% beat Salesforce's return on equity.
Salesforce currently has a consensus price target of $310.94, indicating a potential upside of 15.23%. Shopify has a consensus price target of $77.06, indicating a potential upside of 32.40%. Given Salesforce's higher possible upside, analysts clearly believe Shopify is more favorable than Salesforce.
80.4% of Salesforce shares are owned by institutional investors. Comparatively, 69.3% of Shopify shares are owned by institutional investors. 3.2% of Salesforce shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Salesforce received 1794 more outperform votes than Shopify when rated by MarketBeat users. Likewise, 82.76% of users gave Salesforce an outperform vote while only 66.76% of users gave Shopify an outperform vote.
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.
Salesforce has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Shopify has a beta of 2.2, meaning that its share price is 120% 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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