WallStSmart

Fastly, Inc. Class A Common Stock (FSLY)vsShopify Inc (SHOP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Shopify Inc generates 1795% more annual revenue ($12.37B vs $652.57M). SHOP leads profitability with a 10.8% profit margin vs -15.8%. SHOP earns a higher WallStSmart Score of 50/100 (C-).

FSLY

Avoid

33

out of 100

Grade: F

Growth: 6.7Profit: 2.0Value: 6.7Quality: 6.5
Piotroski: 5/9Altman Z: 0.37

SHOP

Buy

50

out of 100

Grade: C-

Growth: 7.3Profit: 7.0Value: 4.7Quality: 8.5
Piotroski: 3/9Altman Z: 6.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FSLYUndervalued (+74.5%)

Margin of Safety

+74.5%

Fair Value

$36.45

Current Price

$18.07

$18.38 discount

UndervaluedFair: $36.45Overvalued
SHOPUndervalued (+18.4%)

Margin of Safety

+18.4%

Fair Value

$143.39

Current Price

$109.54

$33.85 discount

UndervaluedFair: $143.39Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FSLY3 strengths · Avg: 8.7/10
Debt/EquityHealth
0.0810/10

Conservative balance sheet, low leverage

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
19.8%8/10

19.8% revenue growth

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
6.6010/10

Safe zone — low bankruptcy risk

Market CapQuality
$139.50B9/10

Large-cap with strong market position

Areas to Watch

FSLY4 concerns · Avg: 2.3/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
-10.7%2/10

ROE of -10.7% — below average capital efficiency

Altman Z-ScoreHealth
0.372/10

Distress zone — elevated risk

Profit MarginProfitability
-15.8%1/10

Currently unprofitable

SHOP4 concerns · Avg: 3.3/10
PEG RatioValuation
2.104/10

Expensive relative to growth rate

Price/BookValuation
11.4x4/10

Trading at 11.4x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
105.4x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : FSLY

The strongest argument for FSLY centers on Debt/Equity, Price/Book, Revenue Growth. Revenue growth of 19.8% 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 : FSLY

The primary concerns for FSLY are EPS Growth, Return on Equity, Altman Z-Score.

Bear Case : SHOP

The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 105.4x leaves little room for execution misses.

Key Dynamics to Monitor

SHOP carries more volatility with a beta of 2.59 — expect wider price swings.

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

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

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

Bottom Line

SHOP scores higher overall (50/100 vs 33/100) and 34.3% revenue growth. FSLY offers better value entry with a 74.5% margin of safety. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Fastly, Inc. Class A Common Stock

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Fastly, Inc. operates an edge cloud platform to process, serve, and protect its customers' applications in the United States, Asia Pacific, Europe, and internationally. The company is headquartered in San Francisco, California.

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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