Comparing Zapata Computing (NASDAQ:ZPTA) & Shopify (NASDAQ:SHOP)

Zapata Computing (NASDAQ:ZPTA) and Shopify (NASDAQ:SHOP) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zapata Computing	N/A	N/A	-60.05%
Shopify	23.42%	12.30%	10.17%

Institutional and Insider Ownership

51.2% of Zapata Computing shares are owned by institutional investors. Comparatively, 69.3% of Shopify shares are owned by institutional investors. 1.0% of Zapata Computing shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Zapata Computing has a beta of 24.64, indicating that its share price is 2,364% more volatile than the S&P 500. Comparatively, Shopify has a beta of 2.72, indicating that its share price is 172% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Zapata Computing and Shopify, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zapata Computing	0	0	0	0	0.00
Shopify	1	23	22	0	2.46

Shopify has a consensus target price of $151.95, indicating a potential upside of 0.61%. Given Shopify’s stronger consensus rating and higher probable upside, analysts plainly believe Shopify is more favorable than Zapata Computing.

Valuation & Earnings

This table compares Zapata Computing and Shopify”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zapata Computing	$5.68 million	0.62	-$860,000.00	N/A	N/A
Shopify	$10.01 billion	19.60	$2.02 billion	$1.79	84.37

Shopify has higher revenue and earnings than Zapata Computing.

Summary

Shopify beats Zapata Computing on 10 of the 12 factors compared between the two stocks.

About Zapata Computing

Zapata Computing Holdings Inc. operates as an industrial generative artificial intelligence (AI) software company in the United States. The company offers subscription-based solutions that combine software and services to develop generative AI applications, as well as accompanying services to solve complex industrial problems. It also provides Zapata AI Sense, a suite of algorithms and complex mathematical models to enhance analytics and other data-driven applications; Zapata AI Prose, a set of generative AI solutions based on large language models for generic chatbot applications; and Orquestra, an industrial generative AI application development platform, which provides sense and prose. It serves enterprise organizations. Zapata Computing Holdings Inc. was founded in 2017 and is based in Boston, Massachusetts.

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.