Shopify Inc (SHOP)vsSPS Commerce Inc (SPSC)
SHOP
Shopify Inc
$157.49
-5.63%
TECHNOLOGY · Cap: $215.16B
SPSC
SPS Commerce Inc
$82.99
-3.25%
TECHNOLOGY · Cap: $3.08B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 1618% more annual revenue ($13.27B vs $772.49M). SHOP leads profitability with a 14.5% profit margin vs 10.1%. SHOP appears more attractively valued with a PEG of 2.36. SHOP earns a higher WallStSmart Score of 63/100 (C+).
SHOP
Buy63
out of 100
Grade: C+
SPSC
Hold46
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+22.4%
Fair Value
$150.73
Current Price
$157.49
$6.76 discount
Margin of Safety
+70.8%
Fair Value
$235.04
Current Price
$82.99
$152.05 discount
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
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Areas to Watch
Expensive relative to growth rate
Trading at 16.0x book value
Weak financial health signals
Premium valuation, high expectations priced in
Expensive relative to growth rate
Premium valuation, high expectations priced in
Earnings declined 63.9%
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 : SPSC
The strongest argument for SPSC centers on Debt/Equity, Altman Z-Score.
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 : SPSC
The primary concerns for SPSC are PEG Ratio, P/E Ratio, EPS Growth. A P/E of 41.8x leaves little room for execution misses.
Key Dynamics to Monitor
SHOP profiles as a growth stock while SPSC 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 46/100) and 33.7% revenue growth. SPSC offers better value entry with a 70.8% margin of safety. 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.
SPS Commerce Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
SPS Commerce, Inc. provides cloud-based supply chain management solutions globally. The company is headquartered in Minneapolis, Minnesota.
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