WallStSmart

Shopify Inc (SHOP)vsSPS Commerce Inc (SPSC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Shopify Inc generates 1523% more annual revenue ($12.37B vs $762.08M). SPSC leads profitability with a 11.9% profit margin vs 10.8%. SHOP appears more attractively valued with a PEG of 2.10. 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

SPSC

Hold

47

out of 100

Grade: D+

Growth: 5.3Profit: 6.0Value: 6.0Quality: 8.0
Piotroski: 3/9Altman Z: 4.60
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
SPSCUndervalued (+70.9%)

Margin of Safety

+70.9%

Fair Value

$235.52

Current Price

$55.47

$180.05 discount

UndervaluedFair: $235.52Overvalued

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

SPSC3 strengths · Avg: 9.3/10
Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.6010/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

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

SPSC3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.712/10

Expensive relative to growth rate

EPS GrowthGrowth
-9.0%2/10

Earnings declined 9.0%

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 : SPSC

The strongest argument for SPSC centers on Debt/Equity, Altman Z-Score, Price/Book.

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 : SPSC

The primary concerns for SPSC are Piotroski F-Score, PEG Ratio, EPS Growth.

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 2.59 — expect wider price swings.

SHOP is growing revenue faster at 34.3% — sustainability is the question.

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

Bottom Line

SHOP scores higher overall (50/100 vs 47/100) and 34.3% revenue growth. SPSC offers better value entry with a 70.9% 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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