Head to Head Contrast: Shopify (NASDAQ:SHOP) & Intellinetics (OTCMKTS:INLXD)

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

Insider & Institutional Ownership

69.3% of Shopify shares are held by institutional investors. 27.7% of Intellinetics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Shopify and Intellinetics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shopify	0	23	22	0	2.49
Intellinetics	0	0	0	0	0.00

Shopify currently has a consensus target price of $168.69, indicating a potential downside of 0.45%. Given Shopify’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Shopify is more favorable than Intellinetics.

Profitability

This table compares Shopify and Intellinetics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shopify	16.65%	11.72%	9.73%
Intellinetics	-84.11%	N/A	-214.86%

Risk & Volatility

Shopify has a beta of 2.82, suggesting that its share price is 182% more volatile than the S&P 500. Comparatively, Intellinetics has a beta of 0.22, suggesting that its share price is 78% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shopify	$8.88 billion	24.84	$2.02 billion	$1.35	125.52
Intellinetics	$2.54 million	1.24	-$2.13 million	($6.00)	-1.36

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.

Summary

Shopify beats Intellinetics on 13 of the 14 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 Intellinetics

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.