Shopify (NASDAQ:SHOP – Get Free Report) and Zenvia (NASDAQ:ZENV – Get Free Report) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.
Risk & Volatility
Shopify has a beta of 2.65, indicating that its stock price is 165% more volatile than the S&P 500. Comparatively, Zenvia has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500.
Valuation and Earnings
This table compares Shopify and Zenvia”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Shopify | $14.17 billion | 13.32 | $1.23 billion | $1.64 | 89.40 |
| Zenvia | $1.10 billion | 0.02 | -$28.67 million | ($0.40) | -1.17 |
Shopify has higher revenue and earnings than Zenvia. Zenvia is trading at a lower price-to-earnings ratio than Shopify, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
69.3% of Shopify shares are owned by institutional investors. Comparatively, 49.2% of Zenvia shares are owned by institutional investors. 78.4% of Zenvia 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.
Analyst Recommendations
This is a summary of current recommendations and price targets for Shopify and Zenvia, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shopify | 0 | 10 | 38 | 1 | 2.82 |
| Zenvia | 1 | 0 | 0 | 0 | 1.00 |
Shopify currently has a consensus price target of $178.82, indicating a potential upside of 21.97%. Given Shopify’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Shopify is more favorable than Zenvia.
Profitability
This table compares Shopify and Zenvia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Shopify | 15.01% | 14.03% | 12.34% |
| Zenvia | -10.62% | -14.36% | -6.52% |
Summary
Shopify beats Zenvia on 14 of the 15 factors compared between the two stocks.
About Shopify
Shopify is a commerce technology company that provides tools for businesses to create and operate online stores. Its platform supports activities such as product management, order processing, payments, shipping, marketing and customer engagement. Shopify also offers point-of-sale tools for merchants selling in person, connecting retail operations with online sales. Its services are used by businesses of varying sizes and are available to merchants in countries around the world. Founded in 2006, Shopify is headquartered in Ottawa, Canada.
About Zenvia
Zenvia Inc. is a Brazilian technology company that provides customer experience and communications solutions for businesses. Its platform is designed to help companies manage interactions with customers across multiple digital channels, supporting activities such as marketing, sales, customer service and engagement. The company’s products and services include application programming interfaces (APIs) and communications-platform-as-a-service tools for SMS, WhatsApp, voice and other messaging channels.
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