Shopify (NASDAQ: CSOD) and Cornerstone OnDemand (NASDAQ:CSOD) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Valuation & Earnings

This table compares Shopify and Cornerstone OnDemand’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Shopify $673.30 million 25.52 -$39.99 million ($0.42) -384.57
Cornerstone OnDemand $481.98 million 6.88 -$61.33 million ($0.70) -80.61

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

Profitability

This table compares Shopify and Cornerstone OnDemand’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Shopify -6.12% -3.77% -3.44%
Cornerstone OnDemand -10.03% -79.03% -3.02%

Analyst Ratings

This is a breakdown of current ratings and target prices for Shopify and Cornerstone OnDemand, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shopify 0 7 10 0 2.59
Cornerstone OnDemand 1 4 6 1 2.58

Shopify currently has a consensus price target of $163.44, suggesting a potential upside of 1.19%. Cornerstone OnDemand has a consensus price target of $56.10, suggesting a potential downside of 0.58%. Given Shopify’s stronger consensus rating and higher possible upside, equities analysts plainly believe Shopify is more favorable than Cornerstone OnDemand.

Risk and Volatility

Shopify has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Cornerstone OnDemand has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Insider and Institutional Ownership

60.7% of Shopify shares are held by institutional investors. Comparatively, 91.7% of Cornerstone OnDemand shares are held by institutional investors. 11.7% of Cornerstone OnDemand shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Shopify beats Cornerstone OnDemand on 10 of the 14 factors compared between the two stocks.

Shopify Company Profile

Shopify Inc. provides a cloud-based multi-channel commerce platform for small and medium-sized businesses in Canada, the United States, the United Kingdom, Australia, and internationally. Its platform provides merchants with a single view of business and customers in various sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces; and enables to manage products and inventory, process orders and payments, ship orders, build customer relationships, leverage analytics and reporting, and access financing. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was founded in 2004 and is headquartered in Ottawa, Canada.

Cornerstone OnDemand Company Profile

Cornerstone OnDemand, Inc., together with its subsidiaries, provides learning and human capital management software through software-as-a-service model worldwide. Its enterprise human capital management platform comprises four product suites, such as Recruiting Suite that helps organizations to source and attract candidates, assess and select applicants, onboard new hires, and manage the entire recruiting process; Learning Suite, which enables clients to manage training and development programs, knowledge sharing and collaboration among employees, track compliance requirements, and support career development for employees; Performance Suite that provides tools to manage goal setting, performance reviews, competency assessments, development plans, continuous feedback, compensation management, and succession planning; and HR Administration Suite, which supports employee records administration, organizational management, employee and manager self-service, workforce planning, and compliance reporting. The company also offers PiiQ, a cloud-based talent management solution for organizations with 500 or fewer employees; and Cornerstone Edge solutions that allow clients and partners to integrate with marketplace of service providers. In addition, it provides professional services, including application configuration, system integration, business process re-engineering, change management, and training. The company serves automotive, business services, education and publishing, financial services, food and restaurants, healthcare, insurance, media and communications, non-profits, pharmaceuticals, public sector, retail, technology, and travel industries. Cornerstone OnDemand, Inc. was founded in 1999 and is headquartered in Santa Monica, California.

Receive News & Ratings for Shopify Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Shopify and related companies with MarketBeat.com's FREE daily email newsletter.