Shopify Inc (SHOP)vsSonos Inc (SONO)
SHOP
Shopify Inc
$148.91
+3.59%
TECHNOLOGY · Cap: $215.16B
SONO
Sonos Inc
$16.41
+0.49%
TECHNOLOGY · Cap: $2.07B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 790% more annual revenue ($13.27B vs $1.49B). SHOP leads profitability with a 14.5% profit margin vs 3.8%. SONO trades at a lower P/E of 38.8x. SHOP earns a higher WallStSmart Score of 63/100 (C+).
SHOP
Buy63
out of 100
Grade: C+
SONO
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+22.4%
Fair Value
$150.73
Current Price
$148.91
$1.82 discount
Margin of Safety
-32.2%
Fair Value
$12.48
Current Price
$16.41
$3.93 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Revenue surging 33.7% year-over-year
Earnings expanding 68.1% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Trading at 15.1x book value
Weak financial health signals
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
ROE of 6.2% — below average capital efficiency
3.8% margin — thin
Operating margin of 4.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : SHOP
The strongest argument for SHOP centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 33.7% demonstrates continued momentum.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth, Debt/Equity.
Bear Case : SHOP
The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 112.0x leaves little room for execution misses.
Bear Case : SONO
The primary concerns for SONO are P/E Ratio, Return on Equity, Profit Margin. Thin 3.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
SHOP profiles as a growth stock while SONO is a value play — different risk/reward profiles.
SHOP carries more volatility with a beta of 2.63 — 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 (63/100 vs 47/100) and 33.7% 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.
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.
Sonos Inc
TECHNOLOGY · CONSUMER ELECTRONICS · USA
Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.
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