Datatec (OTCMKTS:DTTLY) and Shopify (NASDAQ:SHOP) Financial Contrast

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

Volatility and Risk

Shopify has a beta of 2.58, indicating that its share price is 158% more volatile than the S&P 500. Comparatively, Datatec has a beta of 0.31, indicating that its share price is 69% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shopify	10.77%	12.07%	10.37%
Datatec	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations for Shopify and Datatec, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shopify	0	9	33	3	2.87
Datatec	0	0	0	0	0.00

Shopify currently has a consensus price target of $157.69, suggesting a potential upside of 27.89%. Given Shopify’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Shopify is more favorable than Datatec.

Earnings & Valuation

This table compares Shopify and Datatec”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shopify	$11.56 billion	13.85	$1.23 billion	$1.01	122.08
Datatec	$3.67 billion	0.29	$91.77 million	N/A	N/A

Shopify has higher revenue and earnings than Datatec.

Institutional & Insider Ownership

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

Summary

Shopify beats Datatec on 12 of the 12 factors compared between the two stocks.

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.

About Datatec

Datatec Limited, together with its subsidiaries, provides information and communication technology (ICT) solutions and services worldwide. It operates in four segments: Westcon International, Logicalis International, Logicalis Latin America, and Corporate and Management Consulting. The company distributes cyber security, network infrastructure, unified collaboration products, data centre solutions, and channel services; and offers financing/leasing solutions for ICT customers. It offers solutions through a network of service providers, systems integrators, and specialty resellers under the Westcon and Comstor brands. The company also provides digital services; and strategic, trusted advisory, modeling, and market intelligence services to the telecoms, media, and technology industries. Datatec Limited was founded in 1986 and is headquartered in Sandown, South Africa.