Shopify Inc (SHOP)vsSynchrony Financial (SYF)
SHOP
Shopify Inc
$110.41
-1.19%
TECHNOLOGY · Cap: $136.82B
SYF
Synchrony Financial
$73.14
-1.16%
FINANCIAL SERVICES · Cap: $25.48B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 25% more annual revenue ($12.37B vs $9.89B). SYF leads profitability with a 36.4% profit margin vs 10.8%. SYF appears more attractively valued with a PEG of 2.22. SYF earns a higher WallStSmart Score of 77/100 (B+).
SHOP
Buy50
out of 100
Grade: C-
SYF
Strong Buy77
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+26.1%
Fair Value
$158.22
Current Price
$110.41
$47.81 discount
Intrinsic value data unavailable for SYF.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 34.3% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Attractively priced relative to earnings
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 48.0%
Every $100 of equity generates 22 in profit
Reasonable price relative to book value
Earnings expanding 20.1% YoY
Areas to Watch
Expensive relative to growth rate
Trading at 10.7x book value
Weak financial health signals
Premium valuation, high expectations priced in
Expensive relative to growth rate
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull 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 : SYF
The strongest argument for SYF centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 36.4% and operating margin at 48.0%.
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 : SYF
The primary concerns for SYF are PEG Ratio, Altman Z-Score.
Key Dynamics to Monitor
SHOP profiles as a growth stock while SYF is a mature 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.
SYF generates stronger free cash flow (2.2B), providing more financial flexibility.
Bottom Line
SYF scores higher overall (77/100 vs 50/100), backed by strong 36.4% margins. SHOP offers better value entry with a 26.1% margin of safety. Both earn "Strong 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.
Synchrony Financial
FINANCIAL SERVICES · CREDIT SERVICES · USA
Synchrony Financial is a consumer financial services company headquartered in Stamford, Connecticut, United States. The company offers consumer financing products, including credit, promotional financing and loyalty programs, installment lending to industries, and FDIC-insured consumer savings products through Synchrony Bank, its wholly owned online bank subsidiary.
Visit Website →Compare with Other SOFTWARE - APPLICATION Stocks
Want to dig deeper into these stocks?