Financial Comparison: Shopify (NYSE:SHOP) & Skillsoft (NYSE:SKIL)

Shopify (NYSE:SHOP) and Skillsoft (NYSE:SKIL) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shopify	16.40%	10.88%	8.71%
Skillsoft	-63.42%	-41.27%	-7.99%

Valuation and Earnings

This table compares Shopify and Skillsoft”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shopify	$7.76 billion	13.07	$132.00 million	($0.17)	-463.06
Skillsoft	$536.51 million	0.21	-$349.29 million	($41.25)	-0.34

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

Volatility & Risk

Shopify has a beta of 2.35, meaning that its stock price is 135% more volatile than the S&P 500. Comparatively, Skillsoft has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Shopify and Skillsoft, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shopify	1	15	24	1	2.61
Skillsoft	0	1	3	0	2.75

Shopify presently has a consensus price target of $77.92, suggesting a potential downside of 1.01%. Skillsoft has a consensus price target of $36.67, suggesting a potential upside of 165.12%. Given Skillsoft’s stronger consensus rating and higher probable upside, analysts plainly believe Skillsoft is more favorable than Shopify.

Institutional and Insider Ownership

69.3% of Shopify shares are owned by institutional investors. Comparatively, 87.0% of Skillsoft shares are owned by institutional investors. 13.5% of Skillsoft shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Shopify beats Skillsoft on 10 of the 15 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 Skillsoft

Skillsoft Corp. provides content and platform and instructor-led training services in the United States and internationally. The company's Content & Platform segment engages in the sale, marketing, and delivery of its content learning solutions in areas, such as leadership and business, technology and developer, and compliance comprising individualized coaching, as well as technical skill areas. This segment also offers Percipio, an AI-driven online learning platform that delivers a learning experience through SaaS solutions. Its Instructor-Led Training segment provides training solutions, including information technology and business skills for corporations and their employees by guiding its customers throughout their lifelong technology learning journey by offering relevant and up-to-date skills training through instructor-led and self-paced, vendor certified, and other proprietary offerings. The company markets and sells their offerings to businesses of many sizes, government agencies, educational institutions, and resellers. Skillsoft Corp. is headquartered in Greenwood Village, Colorado.