Tyler Technologies (NYSE:TYL) and Shopify (NYSE:SHOP) Head to Head Contrast

Tyler Technologies (NYSE:TYL) and Shopify (NYSE:SHOP) are both large-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Volatility & Risk

Tyler Technologies has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, Shopify has a beta of 2.66, indicating that its stock price is 166% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tyler Technologies	$2.19 billion	11.03	$263.03 million	$6.64	84.35
Shopify	$8.88 billion	13.38	$2.02 billion	$1.55	59.21

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

Institutional and Insider Ownership

93.3% of Tyler Technologies shares are held by institutional investors. Comparatively, 69.3% of Shopify shares are held by institutional investors. 1.1% of Tyler Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Tyler Technologies and Shopify, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tyler Technologies	0	3	10	0	2.77
Shopify	1	14	26	2	2.67

Tyler Technologies presently has a consensus price target of $674.67, indicating a potential upside of 20.46%. Shopify has a consensus price target of $115.37, indicating a potential upside of 25.71%. Given Shopify’s higher possible upside, analysts clearly believe Shopify is more favorable than Tyler Technologies.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tyler Technologies	12.30%	10.15%	6.63%
Shopify	22.74%	12.00%	9.79%

Summary

Shopify beats Tyler Technologies on 10 of the 15 factors compared between the two stocks.

About Tyler Technologies

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. It operates in two segments, Enterprise Software and Platform Technologies. The company offers platform and transformative technology solutions, including cybersecurity for government agencies; data and insights solutions; digital solutions that helps workers and policymakers to share, communicate, and leverage data; payments solutions, such as billing, presentment, merchant onboarding, collections, reconciliation, and disbursements; platform technologies, an application development platform that enables government workers to build solutions and applications; and outdoor recreation solutions, including campsite reservations, activity registrations, licensing sales and renewals, and real-time data for conservation and park management. It also provides public administration solutions, such as civic services; financial applications with human resources, revenue management, tax billing, utilities, asset management, and payment processing; property and recording service that manages appraisal services, valuation, tax billing and collections, assessment administration, and land and official records; and permitting, licensing, and regulatory management solutions. In addition, the company offers courts and public safety solutions; school ERP and student transportation solutions for K-12 schools; and health and human services solutions. Further, the company offers software as a service arrangements and electronic document filing solutions for courts; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. Tyler Technologies, Inc. has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. The company was founded in 1966 and is headquartered in Plano, Texas.

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.