E Commerce China Dangdang (NYSE: DANG) and Shopify (NYSE:SHOP) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.
Institutional & Insider Ownership
25.7% of E Commerce China Dangdang shares are held by institutional investors. Comparatively, 53.8% of Shopify shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares E Commerce China Dangdang and Shopify’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|E Commerce China Dangdang||N/A||N/A||N/A||($0.15)||-44.20|
|Shopify||$509.00 million||21.34||-$34.47 million||($0.51)||-216.12|
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
E Commerce China Dangdang has a beta of 3.34, meaning that its share price is 234% more volatile than the S&P 500. Comparatively, Shopify has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.
This table compares E Commerce China Dangdang and Shopify’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 breakdown of recent ratings and price targets for E Commerce China Dangdang and Shopify, as provided 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 has a consensus price target of $89.88, suggesting a potential downside of 18.45%. Given Shopify’s higher probable upside, analysts clearly believe Shopify is more favorable than E Commerce China Dangdang.
E Commerce China Dangdang beats Shopify on 5 of the 9 factors compared between the two stocks.
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.
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.
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