Critical Analysis: Zenvia (NASDAQ:ZENV) and Shopify (NASDAQ:SHOP)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shopify	$14.17 billion	13.32	$1.23 billion	$1.64	89.40
Zenvia	$1.10 billion	0.02	-$28.67 million	($0.40)	-1.17

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

Institutional and Insider Ownership

69.3% of Shopify shares are held by institutional investors. Comparatively, 49.2% of Zenvia shares are held by institutional investors. 78.4% of Zenvia shares are held by company 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 and Risk

Shopify has a beta of 2.65, suggesting that its stock price is 165% more volatile than the S&P 500. Comparatively, Zenvia has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shopify	15.01%	14.03%	12.34%
Zenvia	-10.62%	-14.36%	-6.52%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Shopify and Zenvia, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shopify	0	10	38	1	2.82
Zenvia	1	0	0	0	1.00

Shopify currently has a consensus price target of $178.82, indicating a potential upside of 21.97%. Given Shopify’s stronger consensus rating and higher possible upside, analysts clearly believe Shopify is more favorable than Zenvia.

Summary

Shopify beats Zenvia on 14 of the 15 factors compared between the two stocks.

About Shopify

Shopify is a commerce technology company that provides tools for businesses to create and operate online stores. Its platform supports activities such as product management, order processing, payments, shipping, marketing and customer engagement. Shopify also offers point-of-sale tools for merchants selling in person, connecting retail operations with online sales. Its services are used by businesses of varying sizes and are available to merchants in countries around the world. Founded in 2006, Shopify is headquartered in Ottawa, Canada.

About Zenvia

Zenvia Inc. is a Brazilian technology company that provides customer experience and communications solutions for businesses. Its platform is designed to help companies manage interactions with customers across multiple digital channels, supporting activities such as marketing, sales, customer service and engagement. The company’s products and services include application programming interfaces (APIs) and communications-platform-as-a-service tools for SMS, WhatsApp, voice and other messaging channels.