WallStSmart

Shopify Inc (SHOP)vsSoundHound AI Inc (SOUN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Shopify Inc generates 6430% more annual revenue ($13.27B vs $203.20M). SHOP leads profitability with a 14.5% profit margin vs -67.4%. SHOP earns a higher WallStSmart Score of 62/100 (C+).

SHOP

Buy

62

out of 100

Grade: C+

Growth: 10.0Profit: 7.5Value: 4.0Quality: 8.5
Piotroski: 3/9Altman Z: 6.61

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 (+22.8%)

Margin of Safety

+22.8%

Fair Value

$151.41

Current Price

$128.60

$22.81 discount

UndervaluedFair: $151.41Overvalued
SOUNUndervalued (+10.1%)

Margin of Safety

+10.1%

Fair Value

$8.85

Current Price

$6.00

$2.85 discount

UndervaluedFair: $8.85Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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
$188.28B9/10

Large-cap with strong market position

SOUN2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
45.0%10/10

Revenue surging 45.0% year-over-year

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Areas to Watch

SHOP4 concerns · Avg: 2.8/10
Price/BookValuation
13.1x4/10

Trading at 13.1x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.612/10

Expensive relative to growth rate

P/E RatioValuation
98.0x2/10

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
$-34.06M2/10

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, EPS Growth, Debt/Equity. Revenue growth of 33.7% demonstrates continued momentum.

Bull Case : SOUN

The strongest argument for SOUN centers on Revenue Growth, Debt/Equity. Revenue growth of 45.0% demonstrates continued momentum.

Bear Case : SHOP

The primary concerns for SHOP are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 98.0x 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 2.83 — expect wider price swings.

SOUN is growing revenue faster at 45.0% — sustainability is the question.

SHOP generates stronger free cash flow (654M), providing more financial flexibility.

Bottom Line

SHOP scores higher overall (62/100 vs 27/100) and 33.7% 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.

Visit Website →

Want to dig deeper into these stocks?