Shopify Inc (SHOP)vsSpotify Technology SA (SPOT)
SHOP
Shopify Inc
$118.42
+1.95%
TECHNOLOGY · Cap: $151.59B
SPOT
Spotify Technology SA
$473.21
-2.40%
COMMUNICATION SERVICES · Cap: $99.82B
Smart Verdict
WallStSmart Research — data-driven comparison
Spotify Technology SA generates 49% more annual revenue ($17.19B vs $11.56B). SPOT leads profitability with a 12.9% profit margin vs 10.6%. SPOT appears more attractively valued with a PEG of 1.99. SPOT earns a higher WallStSmart Score of 62/100 (C+).
SHOP
Hold48
out of 100
Grade: D+
SPOT
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1729.9%
Fair Value
$6.39
Current Price
$118.42
$112.03 premium
Margin of Safety
+13.1%
Fair Value
$560.66
Current Price
$473.21
$87.45 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 30.6% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 20.3%
Every $100 of equity generates 32 in profit
Large-cap with strong market position
Conservative balance sheet, low leverage
Areas to Watch
Trading at 11.5x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Expensive relative to growth rate
Trading at 10.1x book value
2.1% earnings growth
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : SHOP
The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 30.6% demonstrates continued momentum.
Bull Case : SPOT
The strongest argument for SPOT centers on Return on Equity, Market Cap, Debt/Equity.
Bear Case : SHOP
The primary concerns for SHOP are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 123.6x leaves little room for execution misses.
Bear Case : SPOT
The primary concerns for SPOT are PEG Ratio, Price/Book, EPS Growth. A P/E of 40.5x leaves little room for execution misses.
Key Dynamics to Monitor
SHOP profiles as a growth stock while SPOT is a value play — different risk/reward profiles.
SHOP carries more volatility with a beta of 2.90 — expect wider price swings.
SHOP is growing revenue faster at 30.6% — sustainability is the question.
SPOT generates stronger free cash flow (834M), providing more financial flexibility.
Bottom Line
SPOT scores higher overall (62/100 vs 48/100). 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.
Spotify Technology SA
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Spotify Technology SA, provides audio streaming services worldwide. The company is headquartered in Luxembourg, Luxembourg.
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