WallStSmart

Cerence Inc (CRNC)vsShopify Inc (SHOP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Shopify Inc generates 4187% more annual revenue ($13.27B vs $309.49M). SHOP leads profitability with a 14.5% profit margin vs -5.0%. SHOP earns a higher WallStSmart Score of 62/100 (C+).

CRNC

Hold

36

out of 100

Grade: F

Growth: 3.3Profit: 3.5Value: 6.7Quality: 4.5
Piotroski: 3/9Altman Z: -1.33

SHOP

Buy

62

out of 100

Grade: C+

Growth: 10.0Profit: 7.5Value: 4.0Quality: 8.5
Piotroski: 3/9Altman Z: 6.61
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CRNCUndervalued (+53.2%)

Margin of Safety

+53.2%

Fair Value

$17.30

Current Price

$8.51

$8.79 discount

UndervaluedFair: $17.30Overvalued
SHOPUndervalued (+22.9%)

Margin of Safety

+22.9%

Fair Value

$151.66

Current Price

$128.79

$22.87 discount

UndervaluedFair: $151.66Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRNC1 strengths · Avg: 8.0/10
Price/BookValuation
2.3x8/10

Reasonable price relative to book value

SHOP5 strengths · Avg: 9.8/10
Revenue GrowthGrowth
33.7%10/10

Revenue surging 33.7% year-over-year

EPS GrowthGrowth
68.1%10/10

Earnings expanding 68.1% YoY

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
6.6110/10

Safe zone — low bankruptcy risk

Market CapQuality
$188.28B9/10

Large-cap with strong market position

Areas to Watch

CRNC4 concerns · Avg: 3.0/10
Market CapQuality
$384.91M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

Debt/EquityHealth
1.123/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

SHOP4 concerns · Avg: 2.8/10
Price/BookValuation
13.1x4/10

Trading at 13.1x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.612/10

Expensive relative to growth rate

P/E RatioValuation
98.0x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : CRNC

The strongest argument for CRNC centers on Price/Book. Revenue growth of 11.8% demonstrates continued momentum.

Bull Case : SHOP

The strongest argument for SHOP centers on Revenue Growth, EPS Growth, Debt/Equity. Revenue growth of 33.7% demonstrates continued momentum.

Bear Case : CRNC

The primary concerns for CRNC are Market Cap, Operating Margin, Debt/Equity.

Bear Case : SHOP

The primary concerns for SHOP are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 98.0x leaves little room for execution misses.

Key Dynamics to Monitor

CRNC profiles as a turnaround stock while SHOP is a growth play — different risk/reward profiles.

CRNC carries more volatility with a beta of 3.01 — expect wider price swings.

SHOP is growing revenue faster at 33.7% — sustainability is the question.

SHOP generates stronger free cash flow (654M), providing more financial flexibility.

Bottom Line

SHOP scores higher overall (62/100 vs 36/100) and 33.7% revenue growth. CRNC offers better value entry with a 53.2% margin of safety. 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.

Cerence Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Cerence Inc. provides assistants and innovations with artificial intelligence technology for connected and autonomous vehicles. Offers state-of-the-art software components; components connected to the cloud; tool kits; Applications; and virtual assistant for coexistence and professional services. The company is headquartered in Burlington, Massachusetts.

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.

Want to dig deeper into these stocks?