Reviewing Shopify (NASDAQ:SHOP) and REX IncomeMax Option Strategy ETF (NASDAQ:ULTI)

Shopify (NASDAQ:SHOP) and REX IncomeMax Option Strategy ETF (NASDAQ:ULTI) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Analyst Ratings

This is a summary of recent ratings and price targets for Shopify and REX IncomeMax Option Strategy ETF, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shopify	0	10	31	3	2.84
REX IncomeMax Option Strategy ETF	0	8	1	0	2.48

Shopify presently has a consensus target price of $162.70, suggesting a potential upside of 29.30%. REX IncomeMax Option Strategy ETF has a consensus target price of $13.68, suggesting a potential upside of 0.00%. Given Shopify’s stronger consensus rating and higher probable upside, research analysts clearly believe Shopify is more favorable than REX IncomeMax Option Strategy ETF.

Institutional & Insider Ownership

69.3% of Shopify shares are held by institutional investors. Comparatively, 91.2% of REX IncomeMax Option Strategy ETF shares are held by institutional investors. 3.0% of REX IncomeMax Option Strategy ETF shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Shopify and REX IncomeMax Option Strategy ETF’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shopify	10.65%	11.52%	9.74%
REX IncomeMax Option Strategy ETF	4.78%	8.84%	3.38%

Volatility and Risk

Shopify has a beta of 2.82, indicating that its stock price is 182% more volatile than the S&P 500. Comparatively, REX IncomeMax Option Strategy ETF has a beta of 3.05, indicating that its stock price is 205% more volatile than the S&P 500.

Earnings & Valuation

This table compares Shopify and REX IncomeMax Option Strategy ETF”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shopify	$11.56 billion	14.20	$1.23 billion	$0.93	135.30
REX IncomeMax Option Strategy ETF	$1.14 billion	0.02	$65.14 million	$2.07	6.61

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

Summary

Shopify beats REX IncomeMax Option Strategy ETF on 11 of the 15 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 REX IncomeMax Option Strategy ETF

The Ultimate Software Group, Inc. provides cloud-based human capital management solutions to enterprise companies, mid-market companies, and companies in the strategic market in the United States, Canada, Europe, the Asia Pacific, and internationally. Its UltiPro software solution delivers the functionality businesses need to manage the employee life cycle from recruitment to retirement. The company's UltiPro solution includes feature sets for talent acquisition and onboarding, human resources (HR) service delivery and management, benefits management and online enrollment, payroll, performance management, employee engagement surveying, compensation management with salary planning, budgeting, incentive award planning, succession management, learning management, reporting and analytical decision-making and predictive tools and time capture, scheduling, attendance tracking, and absence accruals; and has role-based features for HR professionals, executives, managers, administrators, and employees. Its UltiPro software solution is delivered through software-as-a-service. The company also provides professional services, and customer support and product maintenance services. It markets its products and services to manufacturing, food services, sports, technology, finance, insurance, retail, real estate, transportation, communications, healthcare, and other services industries primarily through direct sales force. The company was founded in 1990 and is headquartered in Weston, Florida.