Comparing Xperi (NASDAQ:XPER) & Shopify (NASDAQ:SHOP)

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

Risk and Volatility

Shopify has a beta of 2.82, meaning that its stock price is 182% more volatile than the S&P 500. Comparatively, Xperi has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shopify	16.65%	11.72%	9.73%
Xperi	-16.72%	-7.03%	-4.14%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shopify	$8.88 billion	24.86	$2.02 billion	$1.35	125.61
Xperi	$453.96 million	0.60	-$136.61 million	$0.16	36.59

Shopify has higher revenue and earnings than Xperi. Xperi 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 recent ratings for Shopify and Xperi, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shopify	0	23	22	0	2.49
Xperi	0	0	2	0	3.00

Shopify currently has a consensus target price of $168.69, suggesting a potential downside of 0.52%. Xperi has a consensus target price of $11.00, suggesting a potential upside of 87.91%. Given Xperi’s stronger consensus rating and higher possible upside, analysts plainly believe Xperi is more favorable than Shopify.

Insider and Institutional Ownership

69.3% of Shopify shares are owned by institutional investors. Comparatively, 94.3% of Xperi shares are owned by institutional investors. 2.1% of Xperi shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Shopify beats Xperi on 10 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 Xperi

Xperi Inc. operates as a consumer and entertainment technology company worldwide. It offers Pay-TV solutions, including UX solutions that allows service providers to customize elements of the interactive program guide for their customers and to upgrade the programming features and services; IPTV, a cloud-based solution that supports various services and applications, such as TV programming, broadband OTT video content, digital music, photos, and other media experiences; managed IPTV service; video metadata and services; managed IPTV Service, a customizable, cloud-enabled, and end-to-end streaming video solution that enables operators to quickly launch a branded, fully compliant, full-featured Pay-TV service; metadata libraries comprising television, sports, movies, digital-first, celebrities, books, and video games; personalized content discovery, natural language voice, and insights; and TiVo DVR subscriptions, as well as technical support service. It also provides consumer electronics solutions, such as home and mobile audio solutions, and silicon and software solutions for edge inference; connected car solutions, including HD Radio and DTS AutoStage; and Media Platform that provides Vewd middleware solutions, TiVo OS, TiVo Stream 4K, connected TVs, and connected cars that leverage the TiVo OS, as well as advertising solutions. The company was incorporated in 2019 and is headquartered in San Jose, California.