WallStSmart

Appfolio Inc (APPF)vsShopify Inc (SHOP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Shopify Inc generates 1115% more annual revenue ($11.56B vs $950.82M). APPF leads profitability with a 14.8% profit margin vs 10.6%. APPF appears more attractively valued with a PEG of 5.30. APPF earns a higher WallStSmart Score of 52/100 (C-).

APPF

Buy

52

out of 100

Grade: C-

Growth: 6.7Profit: 8.0Value: 4.7Quality: 8.5
Piotroski: 3/9Altman Z: 5.09

SHOP

Hold

48

out of 100

Grade: D+

Growth: 7.3Profit: 7.0Value: 2.0Quality: 8.5
Piotroski: 3/9Altman Z: 4.73
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

APPFSignificantly Overvalued (-577.6%)

Margin of Safety

-577.6%

Fair Value

$26.38

Current Price

$158.57

$132.19 premium

UndervaluedFair: $26.38Overvalued
SHOPSignificantly Overvalued (-1729.9%)

Margin of Safety

-1729.9%

Fair Value

$6.39

Current Price

$118.42

$112.03 premium

UndervaluedFair: $6.39Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

APPF4 strengths · Avg: 9.0/10
Altman Z-ScoreHealth
5.0910/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
26.5%9/10

Every $100 of equity generates 27 in profit

Debt/EquityHealth
0.139/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
21.9%8/10

Revenue surging 21.9% year-over-year

SHOP5 strengths · Avg: 9.4/10
Revenue GrowthGrowth
30.6%10/10

Revenue surging 30.6% year-over-year

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7310/10

Safe zone — low bankruptcy risk

Market CapQuality
$151.59B9/10

Large-cap with strong market position

Operating MarginProfitability
20.3%8/10

Strong operational efficiency at 20.3%

Areas to Watch

APPF4 concerns · Avg: 2.8/10
Price/BookValuation
10.5x4/10

Trading at 10.5x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
5.302/10

Expensive relative to growth rate

P/E RatioValuation
41.5x2/10

Premium valuation, high expectations priced in

SHOP4 concerns · Avg: 2.8/10
Price/BookValuation
11.5x4/10

Trading at 11.5x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
9.562/10

Expensive relative to growth rate

P/E RatioValuation
123.6x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : APPF

The strongest argument for APPF centers on Altman Z-Score, Return on Equity, Debt/Equity. Revenue growth of 21.9% demonstrates continued momentum.

Bull Case : SHOP

The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 30.6% demonstrates continued momentum.

Bear Case : APPF

The primary concerns for APPF are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 41.5x leaves little room for execution misses.

Bear Case : SHOP

The primary concerns for SHOP are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 123.6x leaves little room for execution misses.

Key Dynamics to Monitor

SHOP carries more volatility with a beta of 2.90 — expect wider price swings.

SHOP is growing revenue faster at 30.6% — sustainability is the question.

SHOP generates stronger free cash flow (715M), providing more financial flexibility.

Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

APPF scores higher overall (52/100 vs 48/100) and 21.9% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Appfolio Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

AppFolio, Inc. provides industry-specific cloud-based enterprise software data analytics, services and solutions for the real estate industry. The company is headquartered in Santa Barbara, California.

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Shopify Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.

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