Financial Comparison: Konami (OTCMKTS:KNMCY) and Shopify (NYSE:SHOP)

Konami (OTCMKTS:KNMCY) and Shopify (NYSE:SHOP) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Risk and Volatility

Konami has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Shopify has a beta of 2.63, suggesting that its stock price is 163% more volatile than the S&P 500.

Institutional & Insider Ownership

0.0% of Konami shares are owned by institutional investors. Comparatively, 69.3% of Shopify shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Konami	7.25%	6.91%	4.60%
Shopify	22.74%	12.00%	9.79%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Konami	0	0	0	0	0.00
Shopify	1	18	24	0	2.53

Shopify has a consensus target price of $148.5135, suggesting a potential downside of 1.05%. Given Shopify’s stronger consensus rating and higher possible upside, analysts clearly believe Shopify is more favorable than Konami.

Valuation and Earnings

This table compares Konami 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
Konami	$2.42 billion	3.56	$183.01 million	$1.33	47.83
Shopify	$10.01 billion	19.45	$2.02 billion	$1.79	83.85

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

Summary

Shopify beats Konami on 13 of the 13 factors compared between the two stocks.

About Konami

Konami Holdings Corporation, together with its subsidiaries, primarily engages in the digital entertainment business. It operates through four segments: Digital Entertainment, Health & Fitness, Gaming & Systems, and Pachislot & Pachinko Machines. The Digital Entertainment segment manufactures and sells digital content and related products, including mobile games, arcade games, card games, and computer and video games. The Health & Fitness segment operates health and fitness clubs, as well as designs, manufactures, and sells fitness machines and health products. The Gaming & Systems segment designs, manufactures, sells, and services gaming machines and casino management systems. The Pachislot & Pachinko Machines segment researches, designs, produces, and sells pachinko slot and pachinko machines. It operates in Japan and other Asia/Oceania countries, the United States, and Europe. The company was formerly known as Konami Corporation and changed its name to Konami Holdings Corporation in October 2015. Konami Holdings Corporation was founded in 1969 and is headquartered in Tokyo, Japan.

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.