Shopify (NASDAQ:SHOP) & Datatec (OTCMKTS:DTTLY) Head-To-Head Contrast

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Datatec	$3.67 billion	0.29	$91.77 million	N/A	N/A
Shopify	$11.56 billion	13.85	$1.23 billion	$1.01	122.08

Shopify has higher revenue and earnings than Datatec.

Analyst Ratings

This is a breakdown of current ratings and price targets for Datatec and Shopify, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Datatec	0	0	0	0	0.00
Shopify	0	9	33	3	2.87

Shopify has a consensus target price of $157.69, indicating a potential upside of 27.89%. Given Shopify’s stronger consensus rating and higher probable upside, analysts plainly believe Shopify is more favorable than Datatec.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Datatec	N/A	N/A	N/A
Shopify	10.77%	12.07%	10.37%

Insider & Institutional Ownership

69.3% of Shopify shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Datatec has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500. Comparatively, Shopify has a beta of 2.58, suggesting that its share price is 158% more volatile than the S&P 500.

Summary

Shopify beats Datatec on 12 of the 12 factors compared between the two stocks.

About Datatec

Datatec Limited, together with its subsidiaries, provides information and communication technology (ICT) solutions and services worldwide. It operates in four segments: Westcon International, Logicalis International, Logicalis Latin America, and Corporate and Management Consulting. The company distributes cyber security, network infrastructure, unified collaboration products, data centre solutions, and channel services; and offers financing/leasing solutions for ICT customers. It offers solutions through a network of service providers, systems integrators, and specialty resellers under the Westcon and Comstor brands. The company also provides digital services; and strategic, trusted advisory, modeling, and market intelligence services to the telecoms, media, and technology industries. Datatec Limited was founded in 1986 and is headquartered in Sandown, South Africa.

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.