Head-To-Head Comparison: Shopify (NYSE:SHOP) and Dayforce (NYSE:DAY)

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

Insider & Institutional Ownership

69.3% of Shopify shares are held by institutional investors. 4.9% of Dayforce shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dayforce	$1.76 billion	5.11	$18.10 million	$0.11	518.86
Shopify	$8.88 billion	14.83	$2.02 billion	$1.55	65.60

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

Analyst Ratings

This is a breakdown of current ratings for Dayforce and Shopify, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dayforce	0	7	8	0	2.53
Shopify	1	14	24	1	2.63

Dayforce currently has a consensus price target of $78.64, suggesting a potential upside of 37.79%. Shopify has a consensus price target of $126.31, suggesting a potential upside of 24.23%. Given Dayforce’s higher probable upside, equities analysts plainly believe Dayforce is more favorable than Shopify.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dayforce	1.03%	6.49%	1.75%
Shopify	22.74%	12.00%	9.79%

Volatility & Risk

Dayforce has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Shopify has a beta of 2.47, indicating that its share price is 147% more volatile than the S&P 500.

Summary

Shopify beats Dayforce on 12 of the 15 factors compared between the two stocks.

About Dayforce

Dayforce Inc., together with its subsidiaries, operates as a human capital management (HCM) software company in the United States, Canada, and internationally. It offers Dayforce, a cloud HCM platform that provides human resources, payroll and tax, workforce management, wallet, benefits, and talent intelligence functionalities; and Powerpay, a cloud HR and payroll solution for the small business market. The company also provides payroll and payroll-related services; and implementation and professional services. It sells its solutions through direct sales force and third-party channels. The company was formerly known as Ceridian HCM Holding Inc. and changed its name to Dayforce Inc. in February 2024. Dayforce Inc. was founded in 1992 and is headquartered in Minneapolis, Minnesota.

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.