WallStSmart

Shopify Inc (SHOP)vsSoundHound AI Inc (SOUN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Shopify Inc generates 6621% more annual revenue ($12.37B vs $183.99M). SHOP leads profitability with a 10.8% profit margin vs -91.8%. SHOP earns a higher WallStSmart Score of 50/100 (C-).

SHOP

Buy

50

out of 100

Grade: C-

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

SOUN

Avoid

27

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 5.3Quality: 7.0
Piotroski: 4/9Altman Z: -0.05
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SHOPUndervalued (+18.4%)

Margin of Safety

+18.4%

Fair Value

$143.39

Current Price

$109.54

$33.85 discount

UndervaluedFair: $143.39Overvalued
SOUNUndervalued (+7.4%)

Margin of Safety

+7.4%

Fair Value

$8.60

Current Price

$7.39

$1.21 discount

UndervaluedFair: $8.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

SOUN2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
51.7%10/10

Revenue surging 51.7% year-over-year

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Areas to Watch

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

SOUN4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
-36.7%2/10

ROE of -36.7% — below average capital efficiency

Free Cash FlowQuality
$-26.73M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.052/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : SOUN

The strongest argument for SOUN centers on Revenue Growth, Debt/Equity. Revenue growth of 51.7% demonstrates continued momentum.

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.

Bear Case : SOUN

The primary concerns for SOUN are EPS Growth, Return on Equity, Free Cash Flow.

Key Dynamics to Monitor

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

SOUN carries more volatility with a beta of 2.73 — expect wider price swings.

SOUN is growing revenue faster at 51.7% — sustainability is the question.

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

Bottom Line

SHOP scores higher overall (50/100 vs 27/100) and 34.3% revenue growth. 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.

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.

SoundHound AI Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

SoundHound AI, Inc. develops an independent voice artificial intelligence (AI) platform that enables businesses in all industries to deliver high-quality conversational experiences to their customers. The company is headquartered in Santa Clara, California.

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