Atea ASA (OTCMKTS:ATAZF) and Shopify (NASDAQ:SHOP) Financial Survey

Shopify (NASDAQ:SHOP) and Atea ASA (OTCMKTS:ATAZF) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Shopify and Atea ASA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shopify	0	10	34	1	2.80
Atea ASA	0	0	0	0	0.00

Shopify currently has a consensus target price of $170.72, suggesting a potential upside of 10.63%. Given Shopify’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Shopify is more favorable than Atea ASA.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shopify	$11.56 billion	17.18	$1.23 billion	$1.48	104.27
Atea ASA	N/A	N/A	N/A	C$3.96	4.49

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shopify	14.53%	12.58%	10.94%
Atea ASA	N/A	N/A	N/A

Insider and Institutional Ownership

69.3% of Shopify shares are owned by institutional investors. Comparatively, 45.0% of Atea ASA shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Shopify beats Atea ASA on 10 of the 11 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 Atea ASA

Atea ASA provides IT infrastructure and related solutions for businesses and public sector organizations in the Nordic countries and Baltic regions. The company offers data center and networking solutions comprising of cloudtrack, continuity planning, backup service, managed data center, cloud intelligence service, and disaster recovery services. It is also involved in software licensing and cloud solutions. In addition, the company provides business intelligence, Internet of Things, artificial intelligence, and machine learning services. Further, it offers IT security lifecycle management, and digital workplace solutions. Atea ASA was founded in 1968 and is headquartered in Oslo, Norway.