Nebius Group (NASDAQ:NBIS – Get Free Report) and Shopify (NASDAQ:SHOP – Get Free Report) are both large-cap technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.
Profitability
This table compares Nebius Group and Shopify’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nebius Group | 4.55% | -6.03% | -2.24% |
| Shopify | 14.53% | 12.58% | 10.94% |
Insider & Institutional Ownership
21.9% of Nebius Group shares are held by institutional investors. Comparatively, 69.3% of Shopify shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Nebius Group has a beta of 4.18, meaning that its share price is 318% more volatile than the S&P 500. Comparatively, Shopify has a beta of 2.62, meaning that its share price is 162% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and target prices for Nebius Group and Shopify, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nebius Group | 2 | 4 | 12 | 4 | 2.82 |
| Shopify | 0 | 10 | 36 | 3 | 2.86 |
Nebius Group currently has a consensus target price of $243.25, suggesting a potential upside of 60.10%. Shopify has a consensus target price of $177.79, suggesting a potential upside of 15.00%. Given Nebius Group’s higher possible upside, analysts plainly believe Nebius Group is more favorable than Shopify.
Earnings & Valuation
This table compares Nebius Group and Shopify”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nebius Group | $529.80 million | 72.56 | $82.50 million | ($0.03) | -5,064.70 |
| Shopify | $13.27 billion | 14.99 | $1.23 billion | $1.48 | 104.46 |
Shopify has higher revenue and earnings than Nebius Group. Nebius Group 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 Nebius Group on 10 of the 14 factors compared between the two stocks.
About Nebius Group
Nebius Group N.V., a technology company, builds intelligent products and services powered by machine learning and other technologies to help consumers and businesses navigate the online and offline world. The company’s services include Nebius AI, an AI-centric cloud platform that offers infrastructure and computing capability for AI deployment and machine-learning oriented solutions; and Toloka AI that offers generative AI (GenAI) solutions at every stage of the GenAI lifecycle, such as data annotation and generation, model training and fine-tuning, and quality assessment of large language model for accuracy and reliability. It also offers Avride, an autonomous driving solution which targets ride-hailing, logistics, e-commerce, and food/grocery delivery as application domains, as well as focuses on autonomous vehicles and delivery robots; and TripleTen, an EdTech service that prepares specialists for STEM roles, and equipping them with essential technology skills. The company was formerly known as Yandex N.V. and changed its name to Nebius Group N.V. in August 2024. Nebius Group N.V. was founded in 1989 and is based in Schiphol, the Netherlands.
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.
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