WallStSmart

Shopify Inc (SHOP)vsConstellation Brands Inc Class A (STZ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Shopify Inc generates 35% more annual revenue ($12.37B vs $9.14B). STZ leads profitability with a 18.5% profit margin vs 10.8%. SHOP appears more attractively valued with a PEG of 2.41. STZ earns a higher WallStSmart Score of 56/100 (C).

SHOP

Buy

50

out of 100

Grade: C-

Growth: 7.3Profit: 7.0Value: 4.7Quality: 8.5
Piotroski: 3/9Altman Z: 4.73

STZ

Buy

56

out of 100

Grade: C

Growth: 2.0Profit: 8.5Value: 5.0Quality: 5.5
Piotroski: 6/9Altman Z: 1.95
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SHOPUndervalued (+26.1%)

Margin of Safety

+26.1%

Fair Value

$158.22

Current Price

$110.41

$47.81 discount

UndervaluedFair: $158.22Overvalued

Intrinsic value data unavailable for STZ.

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
0.0910/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7310/10

Safe zone — low bankruptcy risk

Market CapQuality
$136.82B9/10

Large-cap with strong market position

STZ3 strengths · Avg: 8.3/10
Return on EquityProfitability
22.6%9/10

Every $100 of equity generates 23 in profit

P/E RatioValuation
15.6x8/10

Attractively priced relative to earnings

Operating MarginProfitability
26.7%8/10

Strong operational efficiency at 26.7%

Areas to Watch

SHOP4 concerns · Avg: 3.3/10
PEG RatioValuation
2.414/10

Expensive relative to growth rate

Price/BookValuation
10.7x4/10

Trading at 10.7x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
103.4x2/10

Premium valuation, high expectations priced in

STZ4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.954/10

Grey zone — moderate risk

Debt/EquityHealth
1.383/10

Elevated debt levels

PEG RatioValuation
2.742/10

Expensive relative to growth rate

Revenue GrowthGrowth
-11.3%2/10

Revenue declined 11.3%

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 : STZ

The strongest argument for STZ centers on Return on Equity, P/E Ratio, Operating Margin. Profitability is solid with margins at 18.5% and operating margin at 26.7%.

Bear Case : SHOP

The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 103.4x leaves little room for execution misses.

Bear Case : STZ

The primary concerns for STZ are Altman Z-Score, Debt/Equity, PEG Ratio.

Key Dynamics to Monitor

SHOP profiles as a growth stock while STZ is a declining play — different risk/reward profiles.

SHOP carries more volatility with a beta of 2.64 — expect wider price swings.

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

SHOP generates stronger free cash flow (469M), providing more financial flexibility.

Bottom Line

STZ scores higher overall (56/100 vs 50/100), backed by strong 18.5% margins. SHOP offers better value entry with a 26.1% margin of safety. Both earn "Buy" and "Buy" 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.

Constellation Brands Inc Class A

CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA

Constellation Brands, Inc., headquartered in Victor, New York, is an American producer and marketer of beer, wine, and spirits.

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