WallStSmart

Shopify Inc (SHOP)vsVertex (VERX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Shopify Inc generates 1444% more annual revenue ($11.56B vs $748.44M). SHOP leads profitability with a 10.6% profit margin vs 1.0%. SHOP trades at a lower P/E of 123.6x. SHOP earns a higher WallStSmart Score of 48/100 (D+).

SHOP

Hold

48

out of 100

Grade: D+

Growth: 7.3Profit: 7.0Value: 2.0Quality: 8.5
Piotroski: 3/9Altman Z: 4.73

VERX

Avoid

29

out of 100

Grade: F

Growth: 5.3Profit: 4.0Value: 3.0Quality: 4.5
Piotroski: 3/9Altman Z: 0.70
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SHOPSignificantly Overvalued (-1729.9%)

Margin of Safety

-1729.9%

Fair Value

$6.39

Current Price

$118.42

$112.03 premium

UndervaluedFair: $6.39Overvalued
VERXSignificantly Overvalued (-4651.9%)

Margin of Safety

-4651.9%

Fair Value

$0.27

Current Price

$11.66

$11.39 premium

UndervaluedFair: $0.27Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SHOP5 strengths · Avg: 9.4/10
Revenue GrowthGrowth
30.6%10/10

Revenue surging 30.6% 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
$151.59B9/10

Large-cap with strong market position

Operating MarginProfitability
20.3%8/10

Strong operational efficiency at 20.3%

VERX0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

SHOP4 concerns · Avg: 2.8/10
Price/BookValuation
11.5x4/10

Trading at 11.5x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
9.562/10

Expensive relative to growth rate

P/E RatioValuation
123.6x2/10

Premium valuation, high expectations priced in

VERX4 concerns · Avg: 3.0/10
Market CapQuality
$1.92B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
3.3%3/10

ROE of 3.3% — below average capital efficiency

Profit MarginProfitability
1.0%3/10

1.0% margin — thin

Operating MarginProfitability
2.9%3/10

Operating margin of 2.9%

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 30.6% demonstrates continued momentum.

Bull Case : VERX

VERX has a balanced fundamental profile.

Bear Case : SHOP

The primary concerns for SHOP are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 123.6x leaves little room for execution misses.

Bear Case : VERX

The primary concerns for VERX are Market Cap, Return on Equity, Profit Margin. A P/E of 300.5x leaves little room for execution misses. Thin 1.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

SHOP profiles as a growth stock while VERX is a value play — different risk/reward profiles.

SHOP carries more volatility with a beta of 2.90 — expect wider price swings.

SHOP is growing revenue faster at 30.6% — sustainability is the question.

SHOP generates stronger free cash flow (715M), providing more financial flexibility.

Bottom Line

SHOP scores higher overall (48/100 vs 29/100) and 30.6% revenue growth. Both earn "Hold" 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.

Vertex

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Vertex, Inc. provides tax technology solutions for corporations in the retail, communications, leasing, and manufacturing industries in the United States and internationally. The company is headquartered in King of Prussia, Pennsylvania.

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