Critical Review: Shopify (NASDAQ:SHOP) and Data443 Risk Mitigation (OTCMKTS:ATDSD)

Shopify (NASDAQ:SHOP) and Data443 Risk Mitigation (OTCMKTS:ATDSD) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.

Insider & Institutional Ownership

69.3% of Shopify shares are owned by institutional investors. 12.3% of Data443 Risk Mitigation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Shopify and Data443 Risk Mitigation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shopify	10.65%	11.91%	9.88%
Data443 Risk Mitigation	-186.45%	N/A	-259.30%

Valuation & Earnings

This table compares Shopify and Data443 Risk Mitigation”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shopify	$11.56 billion	12.70	$2.02 billion	$1.35	83.48
Data443 Risk Mitigation	$2.63 million	0.00	-$9.71 million	($26.88)	0.00

Shopify has higher revenue and earnings than Data443 Risk Mitigation. Data443 Risk Mitigation is trading at a lower price-to-earnings ratio than Shopify, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Shopify has a beta of 2.83, suggesting that its share price is 183% more volatile than the S&P 500. Comparatively, Data443 Risk Mitigation has a beta of -4.77, suggesting that its share price is 577% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Shopify and Data443 Risk Mitigation, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shopify	0	13	31	0	2.70
Data443 Risk Mitigation	0	0	0	0	0.00

Shopify currently has a consensus price target of $161.97, suggesting a potential upside of 43.72%. Given Shopify’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Shopify is more favorable than Data443 Risk Mitigation.

Summary

Shopify beats Data443 Risk Mitigation on 13 of the 14 factors compared between the two stocks.

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.

About Data443 Risk Mitigation

Data443 Risk Mitigation, Inc. provides data security and privacy management solutions in the United States. The company offers Ransomware Recovery Manager to recover a workstation upon infection to the last known business-operable state; Data Identification Manager, a data classification and governance technology that performs enhanced data discovery and content search of structured and unstructured data; Data Archive Manager, which provides enterprise data retention management and archiving solution; and Sensitive Content Manager, a cloud-based platform for the managing, protecting, and distributing digital content to the desktop and mobile devices. It also provides Data Placement Manager, a data transport, transformation, and delivery product; Access Control Manager that enables access controls across various platforms at scale for internal client systems and commercial public cloud platforms; Blockchain Protection Manager, which protects blockchain transactions from inadvertent disclosure and data leaks; and Global Privacy Manager, a privacy compliance and consumer loss mitigation platform. In addition, the company offers IntellyWP, a product for enhancing the user experience for content management platform; Chat History Scanner, which scans chat messages for compliance, security, personally identifiable information, personal information, payment card industry information, and custom keywords; and GDPR Framework, CCPA Framework, and LGPD Framework WordPress Plugins that enables organizations comply with European, California, and Brazilian privacy rules and regulations. It serves financial services, healthcare, manufacturing, retail, technology, and telecommunications industries. The company was formerly known as LandStar, Inc. and changed its name to Data443 Risk Mitigation, Inc. in October 2017. Data443 Risk Mitigation, Inc. was incorporated in 1998 and is headquartered in Research Triangle Park, North Carolina.