Shopify (NYSE:SHOP) versus Domo (NASDAQ:DOMO) Head-To-Head Analysis

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

Insider & Institutional Ownership

69.3% of Shopify shares are owned by institutional investors. Comparatively, 76.6% of Domo shares are owned by institutional investors. 14.0% of Domo 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.

Volatility & Risk

Shopify has a beta of 2.3, suggesting that its share price is 130% more volatile than the S&P 500. Comparatively, Domo has a beta of 2.45, suggesting that its share price is 145% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Shopify and Domo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shopify	1	14	23	0	2.58
Domo	0	4	1	0	2.20

Shopify currently has a consensus price target of $76.78, suggesting a potential upside of 20.22%. Domo has a consensus price target of $10.20, suggesting a potential upside of 37.65%. Given Domo’s higher possible upside, analysts clearly believe Domo is more favorable than Shopify.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shopify	$7.41 billion	11.10	$132.00 million	($0.17)	-375.71
Domo	$319.63 million	0.89	-$75.57 million	($2.10)	-3.53

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shopify	-2.82%	7.36%	5.83%
Domo	-24.14%	N/A	-36.22%

Summary

Shopify beats Domo on 9 of the 14 factors compared between the two stocks.

About Shopify

Shopify Inc., a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, Australia, China, and Latin America. The company's platform enables merchants to displays, manages, markets, and sells its products through various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, buy buttons, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, new buyers and build customer relationships, source products, leverage analytics and reporting, manage cash, payments and transactions, and access financing. It also sells custom themes and apps, and registration of domain names; and merchant solutions, which include accepting payments, shipping, and securing working capital. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was incorporated in 2004 and is headquartered in Ottawa, Canada.

About Domo

Domo, Inc., together with its subsidiaries, operates a cloud-based business intelligence platform in North America, Western Europe, Canada, Australia, and Japan. Its platform digitally connects from the chief executive officer to the frontline employee with the various people, data, and systems in an organization, as well as giving them access to real-time data and insights, and allowing them to manage business via various browsers and visualization engines accessible across laptops, TV screens, monitors, tablets, and smartphones. The company was formerly known as Domo Technologies, Inc. and changed its name to Domo, Inc. in December 2011. Domo, Inc. was incorporated in 2010 and is headquartered in American Fork, Utah.