Reviewing REX IncomeMax Option Strategy ETF (NASDAQ:ULTI) and Shopify (NASDAQ:SHOP)

REX IncomeMax Option Strategy ETF (NASDAQ:ULTI) and Shopify (NASDAQ:SHOP) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for REX IncomeMax Option Strategy ETF and Shopify, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
REX IncomeMax Option Strategy ETF	0	8	1	0	2.48
Shopify	0	10	31	3	2.84

REX IncomeMax Option Strategy ETF currently has a consensus price target of $13.65, indicating a potential upside of 0.00%. Shopify has a consensus price target of $162.70, indicating a potential upside of 29.95%. Given Shopify’s stronger consensus rating and higher possible upside, analysts clearly believe Shopify is more favorable than REX IncomeMax Option Strategy ETF.

Insider & Institutional Ownership

91.2% of REX IncomeMax Option Strategy ETF shares are owned by institutional investors. Comparatively, 69.3% of Shopify shares are owned by institutional investors. 3.0% of REX IncomeMax Option Strategy ETF shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

REX IncomeMax Option Strategy ETF has a beta of 3.05, indicating that its stock price is 205% more volatile than the S&P 500. Comparatively, Shopify has a beta of 2.82, indicating that its stock price is 182% more volatile than the S&P 500.

Earnings and Valuation

This table compares REX IncomeMax Option Strategy ETF and Shopify”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
REX IncomeMax Option Strategy ETF	$1.14 billion	0.02	$65.14 million	$2.07	6.59
Shopify	$11.56 billion	14.13	$1.23 billion	$0.93	134.62

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

Profitability

This table compares REX IncomeMax Option Strategy ETF and Shopify’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
REX IncomeMax Option Strategy ETF	4.78%	8.84%	3.38%
Shopify	10.65%	11.52%	9.74%

Summary

Shopify beats REX IncomeMax Option Strategy ETF on 11 of the 15 factors compared between the two stocks.

About REX IncomeMax Option Strategy ETF

The Ultimate Software Group, Inc. provides cloud-based human capital management solutions to enterprise companies, mid-market companies, and companies in the strategic market in the United States, Canada, Europe, the Asia Pacific, and internationally. Its UltiPro software solution delivers the functionality businesses need to manage the employee life cycle from recruitment to retirement. The company's UltiPro solution includes feature sets for talent acquisition and onboarding, human resources (HR) service delivery and management, benefits management and online enrollment, payroll, performance management, employee engagement surveying, compensation management with salary planning, budgeting, incentive award planning, succession management, learning management, reporting and analytical decision-making and predictive tools and time capture, scheduling, attendance tracking, and absence accruals; and has role-based features for HR professionals, executives, managers, administrators, and employees. Its UltiPro software solution is delivered through software-as-a-service. The company also provides professional services, and customer support and product maintenance services. It markets its products and services to manufacturing, food services, sports, technology, finance, insurance, retail, real estate, transportation, communications, healthcare, and other services industries primarily through direct sales force. The company was founded in 1990 and is headquartered in Weston, Florida.

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.