Head to Head Analysis: Shopify (NASDAQ:SHOP) & Astea International (OTCMKTS:ATEA)

Astea International (OTCMKTS:ATEA) 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 valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astea International	$27.47 million	1.69	$360,000.00	N/A	N/A
Shopify	$8.88 billion	24.61	$2.02 billion	$1.35	124.36

Shopify has higher revenue and earnings than Astea International.

Risk and Volatility

Astea International has a beta of -0.3, meaning that its stock price is 130% less volatile than the S&P 500. Comparatively, Shopify has a beta of 2.82, meaning that its stock price is 182% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Astea International and Shopify, as reported by MarketBeat.com.

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

Shopify has a consensus price target of $168.69, suggesting a potential upside of 0.49%. Given Shopify’s stronger consensus rating and higher probable upside, analysts clearly believe Shopify is more favorable than Astea International.

Profitability

This table compares Astea International and Shopify’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Astea International	-7.77%	-6.85%	-12.99%
Shopify	16.65%	11.72%	9.73%

Institutional and Insider Ownership

69.3% of Shopify shares are owned by institutional investors. 57.5% of Astea International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Shopify beats Astea International on 11 of the 12 factors compared between the two stocks.

About Astea International

Astea International Inc. develops, markets, and supports service management software solutions worldwide. It offers Astea Alliance, a service management software that addresses the service lifecycle applications, including lead generation, project quotation, service and billing, and asset retirement; and integrates and optimizes business processes for campaigns, call center, depot repair, field service, logistics, projects, and sales and order processing applications. The company also provides FieldCentrix Enterprise suite, a service management solution that runs on various mobile devices; and integrates with customer relationship management and enterprise resource planning applications. In addition, it supports deployments in on-premise, as well as cloud environments by leveraging a multi-tenant architecture; and provides infrastructure tools and services, as well as consulting, implementation, training, and maintenance services. The company's products are used in information technology, medical devices and diagnostic systems, industrial controls and instrumentation, retail/point-of-sale equipment, office automation equipment, imaging systems, fire and security, gaming/leisure equipment, facilities management, and telecommunications, and other related industries with equipment sales and service requirements. Astea International Inc. markets its products through a network of direct and indirect sales and services offices; and distributors consisting of value-added resellers, system integrators, and sales agents, as well as original equipment manufacturing partners. The company was formerly known as Applied System Technologies, Inc. and changed its name to Astea International Inc. in 1992. Astea International Inc. was founded in 1979 and is headquartered in Horsham, Pennsylvania.

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.