Victory Square Technologies (OTCMKTS:VSQTF) & Shopify (NASDAQ:SHOP) Financial Analysis

Victory Square Technologies (OTCMKTS:VSQTF) and Shopify (NASDAQ:SHOP) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Risk & Volatility

Victory Square Technologies has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500. Comparatively, Shopify has a beta of 2.58, meaning that its stock price is 158% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Victory Square Technologies	7.05%	15.76%	10.29%
Shopify	14.53%	12.58%	10.94%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Victory Square Technologies and Shopify, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Victory Square Technologies	0	0	0	0	0.00
Shopify	0	10	35	1	2.80

Shopify has a consensus target price of $170.84, indicating a potential upside of 11.02%. Given Shopify’s stronger consensus rating and higher probable upside, analysts clearly believe Shopify is more favorable than Victory Square Technologies.

Valuation and Earnings

This table compares Victory Square Technologies and Shopify”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Victory Square Technologies	$25.32 million	1.91	$1.46 million	$0.04	11.57
Shopify	$11.56 billion	17.13	$1.23 billion	$1.48	103.97

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

Institutional & Insider Ownership

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

Summary

Shopify beats Victory Square Technologies on 13 of the 14 factors compared between the two stocks.

About Victory Square Technologies

Victory Square Technologies Inc. is a private equity and venture capital firm specializing in incubation, acquisition and invests in startups, Early stage and provides the senior leadership and resources needed to growth. Through its portfolio companies it focuses on technologies in blockchain, digital health, web3, creator economy, metaverse, machine learning, climate tech, youth, mental health, healthcare, special needs, technology, First Nation, artificial intelligence, and virtual reality/augmented reality, health, mobile gaming, film, esports, cannabis, and education. The company formerly known as Fantasy 6 Sports Inc. and changed its name to Victory Square Technologies Inc. in June 2017. It prefers to take minority investment in the companies. Victory Square Technologies Inc. was incorporated in 2015 and is headquartered in Vancouver, Canada with an additional office in Lewes, Delaware.

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.