Head to Head Review: Shopify (SHOP) and E Commerce China Dangdang (DANG)
Shopify (NYSE: SHOP) and E Commerce China Dangdang (NYSE:DANG) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.
This table compares Shopify and E Commerce China Dangdang’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|E Commerce China Dangdang||8.34%||107.58%||17.19%|
This is a summary of recent recommendations and price targets for Shopify and E Commerce China Dangdang, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|E Commerce China Dangdang||0||0||0||0||N/A|
Shopify presently has a consensus target price of $89.71, suggesting a potential downside of 13.53%. Given Shopify’s higher probable upside, research analysts plainly believe Shopify is more favorable than E Commerce China Dangdang.
Institutional and Insider Ownership
57.1% of Shopify shares are held by institutional investors. Comparatively, 25.7% of E Commerce China Dangdang shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Shopify and E Commerce China Dangdang’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Shopify||$509.00 million||20.09||-$34.47 million||($0.51)||-203.41|
|E Commerce China Dangdang||N/A||N/A||N/A||($0.15)||-44.20|
E Commerce China Dangdang has higher revenue, but lower earnings than Shopify. Shopify is trading at a lower price-to-earnings ratio than E Commerce China Dangdang, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Shopify has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, E Commerce China Dangdang has a beta of 3.34, suggesting that its share price is 234% more volatile than the S&P 500.
E Commerce China Dangdang beats Shopify on 5 of the 9 factors compared between the two stocks.
Shopify Inc. (Shopify) provides a cloud-based, multi-channel commerce platform designed for small and medium-sized businesses. The Company offers subscription solutions and merchant solutions. The Company’s software is used by merchants to run their business across all of their sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts and marketplaces. The Shopify platform provides merchants with a single view of their business and customers across all of their sales channels and enables them to manage products and inventory, process orders and payments, ship orders, build customer relationships and leverage analytics and reporting all from one integrated back office. The Shopify platform includes a mobile-optimized checkout system, which is designed to enable merchants’ consumers to buy products over mobile Websites. Its merchants are able to offer their customers the ability to check out by using Apple Pay.
About E Commerce China Dangdang
E-Commerce China Dangdang Inc. is a business to consumer e-commerce company. The Company is focused on selling books online. The Company operates and manages its business in the segment of the provision of a single class of global services for the delivery of content and applications over the Internet. It offers over 1,200,000 book titles, including approximately 1,100,000 Chinese language titles. It offers other media products and general merchandise categories on its Internet platform, including fashion and apparel beauty and personal care products, home and lifestyle products, and baby, children and maternity products. It also offers the dangdang.com marketplace program, which allows third-party merchants to sell their general merchandise products alongside its products. Its Internet platform consists of its dangdang.com Website and its Dangdang mobile shopping application. Its Dangdang Reader application allows customers to browse for, download, purchase and read e-books.
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