Financial Analysis: Pathfinder Acquisition (NASDAQ:PFDR) and Shopify (NYSE:SHOP)

Pathfinder Acquisition (NASDAQ:PFDR) and Shopify (NYSE:SHOP) are both companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Earnings and Valuation

This table compares Pathfinder Acquisition and Shopify”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pathfinder Acquisition	N/A	N/A	$7.97 million	N/A	N/A
Shopify	$10.01 billion	18.84	$2.02 billion	$1.79	81.09

Shopify has higher revenue and earnings than Pathfinder Acquisition.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pathfinder Acquisition	0	0	0	0	0.00
Shopify	1	20	24	0	2.51

Shopify has a consensus target price of $150.27, suggesting a potential upside of 3.53%. Given Shopify’s stronger consensus rating and higher probable upside, analysts plainly believe Shopify is more favorable than Pathfinder Acquisition.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pathfinder Acquisition	N/A	-102.69%	4.33%
Shopify	22.74%	12.00%	9.79%

Insider & Institutional Ownership

77.8% of Pathfinder Acquisition shares are owned by institutional investors. Comparatively, 69.3% of Shopify shares are owned by institutional investors. 20.0% of Pathfinder Acquisition shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Pathfinder Acquisition has a beta of -0.02, suggesting that its share price is 102% less volatile than the S&P 500. Comparatively, Shopify has a beta of 2.69, suggesting that its share price is 169% more volatile than the S&P 500.

Summary

Shopify beats Pathfinder Acquisition on 9 of the 11 factors compared between the two stocks.

About Pathfinder Acquisition

Pathfinder Acquisition Corporation does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses in the technology or technology-enabled sectors. The company was incorporated in 2020 and is based in Palo Alto, California.

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.