WallStSmart

Estee Lauder Companies Inc (EL)vsShopify Inc (SHOP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Estee Lauder Companies Inc generates 20% more annual revenue ($14.83B vs $12.37B). SHOP leads profitability with a 10.8% profit margin vs -1.7%. EL appears more attractively valued with a PEG of 1.43. SHOP earns a higher WallStSmart Score of 50/100 (C-).

EL

Hold

38

out of 100

Grade: F

Growth: 2.7Profit: 4.0Value: 7.0Quality: 4.0
Piotroski: 3/9Altman Z: 1.68

SHOP

Buy

50

out of 100

Grade: C-

Growth: 7.3Profit: 7.0Value: 4.7Quality: 8.5
Piotroski: 3/9Altman Z: 4.73
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ELUndervalued (+35.7%)

Margin of Safety

+35.7%

Fair Value

$163.80

Current Price

$86.20

$77.60 discount

UndervaluedFair: $163.80Overvalued
SHOPUndervalued (+26.1%)

Margin of Safety

+26.1%

Fair Value

$158.22

Current Price

$110.41

$47.81 discount

UndervaluedFair: $158.22Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EL0 strengths · Avg: 0/10

No standout strengths identified

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

Revenue surging 34.3% 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
$136.82B9/10

Large-cap with strong market position

Areas to Watch

EL4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Altman Z-ScoreHealth
1.684/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-6.0%2/10

ROE of -6.0% — below average capital efficiency

SHOP4 concerns · Avg: 3.3/10
PEG RatioValuation
2.414/10

Expensive relative to growth rate

Price/BookValuation
10.7x4/10

Trading at 10.7x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
103.4x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : EL

PEG of 1.43 suggests the stock is reasonably priced for its growth.

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 : EL

The primary concerns for EL are Revenue Growth, Altman Z-Score, Piotroski F-Score. Debt-to-equity of 2.74 is elevated, increasing financial risk.

Bear Case : SHOP

The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 103.4x leaves little room for execution misses.

Key Dynamics to Monitor

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

SHOP carries more volatility with a beta of 2.64 — expect wider price swings.

SHOP is growing revenue faster at 34.3% — sustainability is the question.

SHOP generates stronger free cash flow (469M), providing more financial flexibility.

Bottom Line

SHOP scores higher overall (50/100 vs 38/100) and 34.3% revenue growth. EL offers better value entry with a 35.7% 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.

Estee Lauder Companies Inc

CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA

The Estee Lauder Companies Inc. is an American multinational manufacturer and marketer of prestige skincare, makeup, fragrance and hair care products, based in Midtown Manhattan, New York City. The company owns a diverse portfolio of brands, distributed internationally through both digital commerce and retail channels.

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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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