CafePress (NASDAQ: PRSS) and Shopify (NYSE:SHOP) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.
Institutional and Insider Ownership
13.9% of CafePress shares are held by institutional investors. Comparatively, 57.1% of Shopify shares are held by institutional investors. 28.8% of CafePress shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
CafePress has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Shopify has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.
This table compares CafePress and Shopify’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and price targets for CafePress and Shopify, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CafePress currently has a consensus target price of $3.50, indicating a potential upside of 71.57%. Shopify has a consensus target price of $87.22, indicating a potential downside of 6.71%. Given CafePress’ higher probable upside, equities research analysts clearly believe CafePress is more favorable than Shopify.
Earnings and Valuation
This table compares CafePress and Shopify’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CafePress||$99.53 million||0.34||-$1.14 million||($0.42)||-4.86|
|Shopify||$509.00 million||18.10||-$34.47 million||($0.51)||-183.33|
CafePress has higher revenue, but lower earnings than Shopify. Shopify is trading at a lower price-to-earnings ratio than CafePress, indicating that it is currently the more affordable of the two stocks.
Shopify beats CafePress on 8 of the 13 factors compared between the two stocks.
CafePress Inc. is an online retailer of personalized products offering various gifts and accessories, including t-shirts and apparel, mugs and drinkware, and home goods, such as custom shower curtains and bed coverings. The Company conducts its business on its primary United States-based domain, CafePress.com, and also operates CafePress branded Websites for the markets in the United Kingdom, Canada and Australia. It also sells CafePress branded products through other online retail partners. Its products are customized with designs contributed through various means, including crowd-sourced user generated content, stock art licenses and licensed content relationships with entertainment companies and brands. Its facility in Louisville, Kentucky has technology and manufacturing processes that enables it to provide customized products that are individually built to order. The Company’s processes enable it to produce a range of merchandise.
Shopify Inc. (Shopify) provides a cloud-based, multi-channel commerce platform designed for small and medium-sized businesses. The Company offers subscription solutions and merchant solutions. The Company’s software is used by merchants to run their business across all of their sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts and marketplaces. The Shopify platform provides merchants with a single view of their business and customers across all of their sales channels and enables them to manage products and inventory, process orders and payments, ship orders, build customer relationships and leverage analytics and reporting all from one integrated back office. The Shopify platform includes a mobile-optimized checkout system, which is designed to enable merchants’ consumers to buy products over mobile Websites. Its merchants are able to offer their customers the ability to check out by using Apple Pay.
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