Shopify (NASDAQ:SHOP) vs. Thinspace Technology (OTCMKTS:THNS) Critical Analysis

Thinspace Technology (OTCMKTS:THNS) and Shopify (NASDAQ:SHOP) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Risk and Volatility

Thinspace Technology has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Shopify has a beta of 2.69, suggesting that its stock price is 169% more volatile than the S&P 500.

Valuation & Earnings

This table compares Thinspace Technology 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
Thinspace Technology	N/A	N/A	N/A	N/A	N/A
Shopify	$8.88 billion	20.53	$2.02 billion	$1.79	78.35

Shopify has higher revenue and earnings than Thinspace Technology.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Thinspace Technology	N/A	N/A	N/A
Shopify	23.42%	12.30%	10.17%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Thinspace Technology and Shopify, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thinspace Technology	0	0	0	0	0.00
Shopify	1	20	23	0	2.50

Shopify has a consensus price target of $151.69, indicating a potential upside of 8.16%. Given Shopify’s stronger consensus rating and higher possible upside, analysts plainly believe Shopify is more favorable than Thinspace Technology.

Insider and Institutional Ownership

69.3% of Shopify shares are held by institutional investors. 13.4% of Thinspace Technology shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Shopify beats Thinspace Technology on 9 of the 10 factors compared between the two stocks.

About Thinspace Technology

Thinspace Technology, Inc., a cloud computing company, develops software productivity solutions worldwide. It principally develops and sells network software. The company offers skySpace, a desktop virtualization solution suite, which comprises skyDesk, a management software solution for Microsoft remote desktop users; skyGate, a software solution that allows secure remote access to applications and data from outside of the corporate network; skyView, which offers access to applications or Windows desktops from a browser on any device; skyDirect, a virtual desktop infrastructure software solution that allows secure fast access to hosted virtual desktops; and skyPoint, a hardware thin client endpoint solution for the enterprise and corporate market. The company sells its products directly to independent software vendors and application service providers; and through a chain of distributors and resellers to end users in public and private sectors. Thinspace Technology, Inc. was founded in 2001 and is headquartered in Carrollton, Texas.

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.