Head-To-Head Review: Apex Technology Acquisition (NASDAQ:APXT) & Shopify (NASDAQ:SHOP)

Apex Technology Acquisition (NASDAQ:APXT) and Shopify (NASDAQ:SHOP) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Apex Technology Acquisition and Shopify’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Apex Technology Acquisition	N/A	-750.42%	-10.63%
Shopify	10.77%	12.07%	10.37%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Apex Technology Acquisition and Shopify, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apex Technology Acquisition	0	0	0	0	0.00
Shopify	0	10	31	2	2.81

Shopify has a consensus target price of $158.42, indicating a potential upside of 51.02%. Given Shopify’s stronger consensus rating and higher possible upside, analysts clearly believe Shopify is more favorable than Apex Technology Acquisition.

Institutional and Insider Ownership

6.0% of Apex Technology Acquisition shares are owned by institutional investors. Comparatively, 69.3% of Shopify shares are owned by institutional investors. 21.1% of Apex Technology Acquisition shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Apex Technology Acquisition and Shopify”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apex Technology Acquisition	N/A	N/A	-$60.72 million	N/A	N/A
Shopify	$12.37 billion	11.01	$1.23 billion	$1.01	103.86

Shopify has higher revenue and earnings than Apex Technology Acquisition.

Risk & Volatility

Apex Technology Acquisition has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Shopify has a beta of 2.64, suggesting that its share price is 164% more volatile than the S&P 500.

Summary

Shopify beats Apex Technology Acquisition on 11 of the 12 factors compared between the two stocks.

About Apex Technology Acquisition

Apex Technology Acquisition Corporation does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses in the software and internet technology industries. The company was incorporated in 2019 and is based in Burlingame, California. Apex Technology Acquisition Corporation is a subsidiary of Apex Technology Sponsor LLC.

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.