WallStSmart

Freshworks Inc (FRSH)vsShopify Inc (SHOP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Shopify Inc generates 1368% more annual revenue ($13.27B vs $903.87M). FRSH leads profitability with a 20.5% profit margin vs 14.5%. FRSH appears more attractively valued with a PEG of 0.49. SHOP earns a higher WallStSmart Score of 64/100 (C+).

FRSH

Buy

62

out of 100

Grade: C+

Growth: 6.7Profit: 6.5Value: 8.7Quality: 6.0
Piotroski: 5/9Altman Z: -0.93

SHOP

Buy

64

out of 100

Grade: C+

Growth: 10.0Profit: 7.5Value: 4.7Quality: 8.5
Piotroski: 3/9Altman Z: 6.61
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FRSHUndervalued (+62.3%)

Margin of Safety

+62.3%

Fair Value

$19.36

Current Price

$12.45

$6.91 discount

UndervaluedFair: $19.36Overvalued
SHOPUndervalued (+23.5%)

Margin of Safety

+23.5%

Fair Value

$152.79

Current Price

$147.74

$5.05 discount

UndervaluedFair: $152.79Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FRSH4 strengths · Avg: 9.3/10
PEG RatioValuation
0.4910/10

Growing faster than its price suggests

Debt/EquityHealth
0.0310/10

Conservative balance sheet, low leverage

Profit MarginProfitability
20.5%9/10

Keeps 21 of every $100 in revenue as profit

Revenue GrowthGrowth
16.0%8/10

16.0% revenue growth

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
$165.33B9/10

Large-cap with strong market position

Areas to Watch

FRSH2 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Altman Z-ScoreHealth
-0.932/10

Distress zone — elevated risk

SHOP4 concerns · Avg: 3.3/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

Price/BookValuation
15.0x4/10

Trading at 15.0x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
86.8x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : FRSH

The strongest argument for FRSH centers on PEG Ratio, Debt/Equity, Profit Margin. Profitability is solid with margins at 20.5% and operating margin at 5.5%. Revenue growth of 16.0% 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 : FRSH

The primary concerns for FRSH are EPS Growth, Altman Z-Score.

Bear Case : SHOP

The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 86.8x leaves little room for execution misses.

Key Dynamics to Monitor

SHOP carries more volatility with a beta of 2.62 — 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.

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

Bottom Line

SHOP scores higher overall (64/100 vs 62/100) and 33.7% revenue growth. FRSH offers better value entry with a 62.3% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Freshworks Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Papa Murphy's Holdings, Inc. owns, operates and franchises Take? The company is headquartered in Vancouver, Washington.

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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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