Critical Analysis: Shopify (NASDAQ:SHOP) vs. Elys BMG Group (NASDAQ:ELYS)

Shopify (NASDAQ:SHOP) and Elys BMG Group (NASDAQ:ELYS) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Valuation and Earnings

This table compares Shopify and Elys BMG Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shopify	$8.88 billion	23.22	$2.02 billion	$1.35	117.34
Elys BMG Group	$43.86 million	0.00	-$18.26 million	($1.06)	0.00

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

Profitability

This table compares Shopify and Elys BMG Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shopify	16.65%	11.72%	9.73%
Elys BMG Group	N/A	N/A	N/A

Volatility & Risk

Shopify has a beta of 2.82, suggesting that its stock price is 182% more volatile than the S&P 500. Comparatively, Elys BMG Group has a beta of 10.68, suggesting that its stock price is 968% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Shopify and Elys BMG Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shopify	0	23	22	0	2.49
Elys BMG Group	0	0	0	0	0.00

Shopify presently has a consensus target price of $166.53, suggesting a potential upside of 5.12%. Given Shopify’s stronger consensus rating and higher probable upside, equities analysts clearly believe Shopify is more favorable than Elys BMG Group.

Institutional & Insider Ownership

69.3% of Shopify shares are held by institutional investors. 18.5% of Elys BMG Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Shopify beats Elys BMG Group on 12 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 Elys BMG Group

Elys BMG Group, Inc. engages in the provision of business-to-consumer gaming services in the United States and Europe. The company offers betting platform software services to leisure betting establishments; and operates web based and land-based leisure betting establishments. Its gaming product offerings include sports betting; and online casino, such as online slot and table games, poker, bingo, skilled and interactive games, virtual sports betting, and horse racing. It provides its products through physical, land-based retail locations; newgioco.it or commercial webskins linked to its website; and mobile devices. The company was formerly known as Elys Game Technology, Corp. and changed its name to Elys BMG Group, Inc. in January 2024. Elys BMG Group, Inc. was incorporated in 1998 and is based in Toronto, Canada.