mCloud Technologies (OTCMKTS:MCLDF) & Shopify (NYSE:SHOP) Critical Review

mCloud Technologies (OTCMKTS:MCLDF) and Shopify (NYSE:SHOP) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Earnings and Valuation

This table compares mCloud Technologies and Shopify”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
mCloud Technologies	$20.42 million	0.00	-$35.37 million	N/A	N/A
Shopify	$7.76 billion	13.23	$132.00 million	$0.98	81.20

Shopify has higher revenue and earnings than mCloud Technologies.

Insider and Institutional Ownership

69.3% of Shopify shares are held by institutional investors. 3.6% of mCloud Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
mCloud Technologies	N/A	N/A	N/A
Shopify	16.40%	10.88%	8.71%

Analyst Recommendations

This is a summary of recent ratings and price targets for mCloud Technologies and Shopify, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
mCloud Technologies	0	0	0	0	N/A
Shopify	1	15	23	1	2.60

Shopify has a consensus price target of $81.03, indicating a potential upside of 1.82%.

Risk & Volatility

mCloud Technologies has a beta of 87.64, indicating that its share price is 8,664% more volatile than the S&P 500. Comparatively, Shopify has a beta of 2.36, indicating that its share price is 136% more volatile than the S&P 500.

Summary

Shopify beats mCloud Technologies on 8 of the 10 factors compared between the two stocks.

About mCloud Technologies

mCloud Technologies Corp. provides asset management platform solutions combining IoT, artificial intelligence (AI), and cloud in North America, the Asia-Pacific, Europe, the Middle East, Africa, Australia, and China. Its AI-powered AssetCare platform offers asset management solutions, such as Connected Buildings, an AI and analytics solution to automate and remotely manage commercial buildings; Connected Workers, a cloud software to assist workers in the field to stay connected to experts remotely, facilitate repairs, and provide workers with an AI-powered digital assistant; Connected Energy for the inspection of wind turbine blades using AI-powered computer vision and the deployment of analytics to maximize wind farm energy production yield and availability; Connected Industry, to process assets and control endpoint monitoring, equipment health, and asset inventory management, as well as for the management of change across distributed teams; and Connected Health, which includes remote health monitoring and connectivity to caregivers using mobile apps and wireless sensors. The company was formerly known as Universal mCloud Corp. and changed its name to mCloud Technologies Corp. in October 2019. mCloud Technologies Corp. was founded in 2017 and is based in Vancouver, Canada.

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.