WallStSmart

Clearwater Analytics Holdings Inc (CWAN)vsShopify Inc (SHOP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Shopify Inc generates 1398% more annual revenue ($12.37B vs $825.73M). SHOP leads profitability with a 10.8% profit margin vs -5.8%. CWAN appears more attractively valued with a PEG of 1.78. SHOP earns a higher WallStSmart Score of 50/100 (C-).

CWAN

Hold

47

out of 100

Grade: D+

Growth: 10.0Profit: 2.5Value: 3.7Quality: 6.0
Piotroski: 1/9Altman Z: 1.63

SHOP

Buy

50

out of 100

Grade: C-

Growth: 7.3Profit: 7.0Value: 4.0Quality: 8.5
Piotroski: 3/9Altman Z: 6.61
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CWANSignificantly Overvalued (-17.6%)

Margin of Safety

-17.6%

Fair Value

$20.06

Current Price

$24.56

$4.50 premium

UndervaluedFair: $20.06Overvalued
SHOPUndervalued (+17.7%)

Margin of Safety

+17.7%

Fair Value

$142.03

Current Price

$122.40

$19.63 discount

UndervaluedFair: $142.03Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CWAN2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
74.4%10/10

Revenue surging 74.4% year-over-year

EPS GrowthGrowth
202.8%10/10

Earnings expanding 202.8% YoY

SHOP4 strengths · Avg: 9.8/10
Revenue GrowthGrowth
34.3%10/10

Revenue surging 34.3% year-over-year

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
6.6110/10

Safe zone — low bankruptcy risk

Market CapQuality
$160.34B9/10

Large-cap with strong market position

Areas to Watch

CWAN4 concerns · Avg: 3.5/10
PEG RatioValuation
1.784/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.634/10

Distress zone — elevated risk

Operating MarginProfitability
4.1%3/10

Operating margin of 4.1%

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

SHOP4 concerns · Avg: 2.8/10
Price/BookValuation
12.7x4/10

Trading at 12.7x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.572/10

Expensive relative to growth rate

P/E RatioValuation
120.0x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : CWAN

The strongest argument for CWAN centers on Revenue Growth, EPS Growth. Revenue growth of 74.4% demonstrates continued momentum.

Bull Case : SHOP

The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 34.3% demonstrates continued momentum.

Bear Case : CWAN

The primary concerns for CWAN are PEG Ratio, Altman Z-Score, Operating Margin.

Bear Case : SHOP

The primary concerns for SHOP are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 120.0x leaves little room for execution misses.

Key Dynamics to Monitor

CWAN profiles as a hypergrowth stock while SHOP is a growth play — different risk/reward profiles.

SHOP carries more volatility with a beta of 2.58 — expect wider price swings.

CWAN is growing revenue faster at 74.4% — sustainability is the question.

SHOP generates stronger free cash flow (476M), providing more financial flexibility.

Bottom Line

SHOP scores higher overall (50/100 vs 47/100) and 34.3% 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.

Clearwater Analytics Holdings Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Clearwater Analytics Holdings Inc. (CWAN) is a premier provider of cutting-edge cloud-based investment accounting and analytics solutions tailored for investment firms, insurance companies, and global corporations. The company's sophisticated platform bolsters portfolio management and reporting, allowing clients to make strategic investment decisions while ensuring operational efficiency and adherence to regulatory requirements. With its strategic positioning in the dynamic financial technology sector, Clearwater is adept at harnessing the increasing need for integrated investment solutions, thereby fostering continued growth and innovation within the financial services landscape.

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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