Financial Analysis: Shopify (NASDAQ:SHOP) versus Intellinetics (OTCMKTS:INLXD)

Intellinetics (OTCMKTS:INLXD – Get Free Report) and Shopify (NASDAQ:SHOP – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Valuation & Earnings

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

Shopify has higher revenue and earnings than Intellinetics. Intellinetics 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 Intellinetics and Shopify’s net margins, return on equity and return on assets.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Intellinetics and Shopify, as provided by MarketBeat.com.

Shopify has a consensus target price of $171.61, indicating a potential upside of 4.63%. Given Shopify’s stronger consensus rating and higher probable upside, analysts plainly believe Shopify is more favorable than Intellinetics.

Insider and Institutional Ownership

69.3% of Shopify shares are held by institutional investors. 27.7% of Intellinetics 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.

Volatility and Risk

Intellinetics has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500. Comparatively, Shopify has a beta of 2.83, indicating that its stock price is 183% more volatile than the S&P 500.

Summary

Shopify beats Intellinetics on 13 of the 14 factors compared between the two stocks.

About Intellinetics

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Intellinetics, Inc. develops, markets, and sells document solutions software to the public and private sectors in the United States. The company's software platform allows its customers to capture and manage documents across operations, such as scanned hard-copy documents and digital documents, including Microsoft Office 365, digital images, audios, videos, and emails. It offers IntelliCloud software platform solutions that include image processing modules, records management, workflow, and extended components. The company also provides installation, integration, training, and consulting services, as well as ongoing software maintenance and customer support services; and pre-installation assessment, project scoping, and implementation consulting services. It sells its products to resellers and directly to customers, as well as provides access to its software solutions as a service through the Internet. The company was formerly known as GlobalWise Investments, Inc. and changed its name to Intellinetics, Inc. in September 2014. Intellinetics, Inc. was founded in 1996 and is headquartered in Columbus, Ohio.

About Shopify

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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.