Critical Survey: Shopify (NASDAQ:SHOP) versus Moatable (NYSE:MTBLY)

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Moatable and Shopify, as provided by MarketBeat.com.

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

Shopify has a consensus price target of $157.69, indicating a potential upside of 20.50%. Given Shopify’s stronger consensus rating and higher probable upside, analysts plainly believe Shopify is more favorable than Moatable.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Moatable	-1.97%	-2.47%	-1.69%
Shopify	10.77%	12.07%	10.37%

Earnings and Valuation

This table compares Moatable and Shopify”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Moatable	$52.07 million	0.15	-$8.99 million	($0.14)	-3.36
Shopify	$11.56 billion	14.70	$1.23 billion	$1.01	129.57

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

Risk and Volatility

Moatable has a beta of 9.57, meaning that its stock price is 857% more volatile than the S&P 500. Comparatively, Shopify has a beta of 2.58, meaning that its stock price is 158% more volatile than the S&P 500.

Institutional & Insider Ownership

14.5% of Moatable shares are held by institutional investors. Comparatively, 69.3% of Shopify shares are held by institutional investors. 42.4% of Moatable shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Shopify beats Moatable on 13 of the 15 factors compared between the two stocks.

About Moatable

Moatable, Inc. engages in the software as a service business in the United States and internationally. The company develops Chime, an all-in-one real estate sales acceleration and client lifecycle management platform that allows real estate professionals to obtain and nurture leads, close transactions, and retain their clients; and Trucker Path, a driver-centric online transportation management platform to make freight transportation fast, reliable, and efficient. It also provides online and mobile services for the trucking industry in North America. In addition, the company offers bookkeeping and operations management solutions to property managers and landlords. The company was formerly known as Renren Inc. and changed its name to Moatable, Inc. in June 2023. Moatable, Inc. was founded in 2002 and is headquartered in Phoenix, Arizona.

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.