Comparing Mogo (NASDAQ:MOGO) and Shopify (NASDAQ:SHOP)

Shopify (NASDAQ:SHOP) and Mogo (NASDAQ:MOGO) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shopify	14.53%	12.58%	10.94%
Mogo	11.41%	7.78%	3.34%

Insider and Institutional Ownership

69.3% of Shopify shares are owned by institutional investors. Comparatively, 14.8% of Mogo shares are owned by institutional investors. 12.3% of Mogo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Shopify has a beta of 2.62, indicating that its stock price is 162% more volatile than the S&P 500. Comparatively, Mogo has a beta of 2.71, indicating that its stock price is 171% more volatile than the S&P 500.

Earnings & Valuation

This table compares Shopify and Mogo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shopify	$13.27 billion	15.96	$1.23 billion	$1.48	111.19
Mogo	$69.27 million	0.35	-$9.98 million	$0.23	4.43

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

Analyst Ratings

This is a summary of current ratings and target prices for Shopify and Mogo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shopify	0	10	35	2	2.83
Mogo	1	0	0	0	1.00

Shopify currently has a consensus price target of $172.39, indicating a potential upside of 4.76%. Given Shopify’s stronger consensus rating and higher possible upside, research analysts plainly believe Shopify is more favorable than Mogo.

Summary

Shopify beats Mogo on 13 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 Mogo

Mogo Inc. operates as a digital finance company in Canada, Europe, and internationally. The company's digital solutions help build wealth and achieve financial freedom. It provides MogoTrade, a stock trading app; Moka; and MogoMoney that provides online personal loans. The company also offers digital loans and mortgages; and operates a digital payments platform that powers next-generation card programs for both global corporations and fintech companies in Europe and Canada. Mogo Inc. is headquartered in Vancouver, Canada.