Head to Head Contrast: Xunlei (NASDAQ:XNET) & Shopify (NASDAQ:SHOP)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Xunlei -33.31% -16.81% -12.65%
Shopify -5.98% -3.85% -3.46%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Xunlei $230.60 million 0.79 -$39.28 million N/A N/A
Shopify $1.07 billion 33.78 -$64.55 million ($0.61) -532.79

Xunlei has higher earnings, but lower revenue than Shopify.

Insider and Institutional Ownership

10.9% of Xunlei shares are held by institutional investors. Comparatively, 59.7% of Shopify shares are held by institutional investors. 21.7% of Xunlei shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Xunlei and Shopify, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xunlei 0 0 0 0 N/A
Shopify 2 10 14 0 2.46

Shopify has a consensus target price of $334.16, indicating a potential upside of 2.82%. Given Shopify’s higher probable upside, analysts clearly believe Shopify is more favorable than Xunlei.

Risk and Volatility

Xunlei has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500. Comparatively, Shopify has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

Summary

Shopify beats Xunlei on 8 of the 11 factors compared between the two stocks.

Xunlei Company Profile

Xunlei Limited, a cloud-based acceleration technology company, operates an Internet platform for digital media content in the People's Republic of China. The company's platform is based on cloud computing that enables users to access, manage, and consume digital media content. It offers Xunlei Accelerator, which enables users to accelerate digital transmission over the Internet; and cloud acceleration subscription services that offer users premium services through various products, such as Green Channel and Offline Accelerator. The company also provides Mobile Xunlei, a mobile application that allows users to search, download, and consume digital media content on their mobile devices; Xunlei Media Player, which supports online and offline play of digital media content, as well as simultaneous play of digital media content while it is being transmitted by Xunlei Accelerator; online games online game Website and purchase licenses; live video and online advertising services; and other Internet value-added services. As of December 2017, its platform had approximately 145 million monthly unique visitors. Xunlei Limited has strategic partnerships with People Capital to promote blockchain innovation; and China Mobile IoT Company Limited to develop IoT industry solutions. The company was formerly known as Giganology Limited and changed its name to Xunlei Limited in January 2011. Xunlei Limited was founded in 2003 and is based in Shenzhen, the People's Republic of China.

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.

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