Financial Comparison: Apex Technology Acquisition (NASDAQ:APXT) and Shopify (NASDAQ:SHOP)

Apex Technology Acquisition (NASDAQ:APXT) and Shopify (NASDAQ:SHOP) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.

Institutional & Insider Ownership

6.0% of Apex Technology Acquisition shares are owned by institutional investors. Comparatively, 69.3% of Shopify shares are owned by institutional investors. 21.1% of Apex Technology Acquisition shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Apex Technology Acquisition has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Shopify has a beta of 2.64, suggesting that its stock price is 164% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Apex Technology Acquisition and Shopify, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apex Technology Acquisition	1	0	0	0	1.00
Shopify	0	10	31	2	2.81

Shopify has a consensus target price of $157.17, indicating a potential upside of 26.62%. Given Shopify’s stronger consensus rating and higher probable upside, analysts plainly believe Shopify is more favorable than Apex Technology Acquisition.

Earnings & Valuation

This table compares Apex Technology Acquisition and Shopify”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apex Technology Acquisition	N/A	N/A	-$60.72 million	N/A	N/A
Shopify	$12.37 billion	13.02	$1.23 billion	$1.01	122.89

Shopify has higher revenue and earnings than Apex Technology Acquisition.

Profitability

This table compares Apex Technology Acquisition and Shopify’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Apex Technology Acquisition	N/A	-750.42%	-10.63%
Shopify	10.77%	12.07%	10.37%

Summary

Shopify beats Apex Technology Acquisition on 11 of the 12 factors compared between the two stocks.

About Apex Technology Acquisition

Apex Technology Acquisition Corporation does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses in the software and internet technology industries. The company was incorporated in 2019 and is based in Burlingame, California. Apex Technology Acquisition Corporation is a subsidiary of Apex Technology Sponsor LLC.

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.