Shopify (NYSE:SHOP) and Coupa Software (NASDAQ:COUP) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.
Volatility and Risk
Shopify has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, Coupa Software has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500.
Institutional & Insider Ownership
57.3% of Shopify shares are owned by institutional investors. 5.3% of Coupa Software shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Shopify and Coupa Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Shopify | -8.97% | -3.36% | -3.00% |
| Coupa Software | -23.60% | -12.24% | -4.21% |
Valuation and Earnings
This table compares Shopify and Coupa Software’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Shopify | $1.07 billion | 43.85 | -$64.55 million | ($0.61) | -668.85 |
| Coupa Software | $260.37 million | 36.98 | -$55.52 million | ($0.67) | -225.24 |
Coupa Software has lower revenue, but higher earnings than Shopify. Shopify is trading at a lower price-to-earnings ratio than Coupa Software, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Shopify and Coupa Software, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shopify | 2 | 10 | 14 | 0 | 2.46 |
| Coupa Software | 0 | 7 | 15 | 0 | 2.68 |
Shopify presently has a consensus price target of $334.16, suggesting a potential downside of 18.10%. Coupa Software has a consensus price target of $160.09, suggesting a potential upside of 6.08%. Given Coupa Software’s stronger consensus rating and higher possible upside, analysts plainly believe Coupa Software is more favorable than Shopify.
Summary
Shopify beats Coupa Software on 7 of the 13 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 the United States, the United Kingdom, Canada, 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.
Coupa Software Company Profile
Coupa Software, Inc. engages in providing business spend management (BSM) solutions. It offers cloud-based BSM platform that delivers a broad range of capabilities that would typically require the purchase and use of multiple disparate point applications. Its platform consists of procurement, invoicing, expense management and payments modules that form the transactional engine for managing a company’s business spend. The company was founded by Noah Eisner and Dave Stephens in 2006 and is headquartered in San Mateo, CA.
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