Critical Review: Victory Square Technologies (OTCMKTS:VSQTF) vs. Shopify (NASDAQ:SHOP)

Shopify (NASDAQ:SHOP) and Victory Square Technologies (OTCMKTS:VSQTF) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

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

Valuation & Earnings

This table compares Shopify and Victory Square Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shopify	$11.56 billion	17.02	$1.23 billion	$1.48	103.31
Victory Square Technologies	$25.32 million	1.96	$1.46 million	$0.04	11.90

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

Risk and Volatility

Shopify has a beta of 2.58, meaning that its stock price is 158% more volatile than the S&P 500. Comparatively, Victory Square Technologies has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500.

Profitability

This table compares Shopify and Victory Square Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shopify	14.53%	12.58%	10.94%
Victory Square Technologies	7.05%	15.76%	10.29%

Analyst Ratings

This is a summary of recent ratings and target prices for Shopify and Victory Square Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shopify	0	10	35	1	2.80
Victory Square Technologies	0	0	0	0	0.00

Shopify currently has a consensus price target of $170.84, indicating a potential upside of 11.73%. Given Shopify’s stronger consensus rating and higher possible upside, equities analysts plainly believe Shopify is more favorable than Victory Square Technologies.

Summary

Shopify beats Victory Square Technologies on 13 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 Victory Square Technologies

Victory Square Technologies Inc. is a private equity and venture capital firm specializing in incubation, acquisition and invests in startups, Early stage and provides the senior leadership and resources needed to growth. Through its portfolio companies it focuses on technologies in blockchain, digital health, web3, creator economy, metaverse, machine learning, climate tech, youth, mental health, healthcare, special needs, technology, First Nation, artificial intelligence, and virtual reality/augmented reality, health, mobile gaming, film, esports, cannabis, and education. The company formerly known as Fantasy 6 Sports Inc. and changed its name to Victory Square Technologies Inc. in June 2017. It prefers to take minority investment in the companies. Victory Square Technologies Inc. was incorporated in 2015 and is headquartered in Vancouver, Canada with an additional office in Lewes, Delaware.