Shopify Inc (SHOP)vsUnity Software Inc (U)
SHOP
Shopify Inc
$151.57
+2.80%
TECHNOLOGY · Cap: $158.83B
U
Unity Software Inc
$43.00
+5.37%
TECHNOLOGY · Cap: $13.84B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 543% more annual revenue ($12.37B vs $1.92B). SHOP leads profitability with a 10.8% profit margin vs -35.0%. SHOP earns a higher WallStSmart Score of 50/100 (C-).
SHOP
Buy50
out of 100
Grade: C-
U
Avoid32
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+17.7%
Fair Value
$142.03
Current Price
$151.57
$9.54 discount
Margin of Safety
+50.8%
Fair Value
$39.90
Current Price
$43.00
$3.10 discount
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
16.8% revenue growth
Areas to Watch
Trading at 15.8x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
0.0% earnings growth
ROE of -22.6% — below average capital efficiency
Distress zone — elevated risk
Currently unprofitable
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 : U
The strongest argument for U centers on Revenue Growth. Revenue growth of 16.8% demonstrates continued momentum.
Bear Case : SHOP
The primary concerns for SHOP are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 120.0x leaves little room for execution misses.
Bear Case : U
The primary concerns for U are EPS Growth, Return on Equity, Altman Z-Score.
Key Dynamics to Monitor
SHOP carries more volatility with a beta of 2.58 — 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.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SHOP scores higher overall (50/100 vs 32/100) and 34.3% revenue growth. U offers better value entry with a 50.8% margin of safety. Both earn "Buy" and "Avoid" 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.
Unity Software Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Unity Software Inc. operates a real-time 3D development platform. The company is headquartered in San Francisco, California.
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