WallStSmart

ADEIA CORP (ADEA)vsShopify Inc (SHOP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Shopify Inc generates 2585% more annual revenue ($12.37B vs $460.49M). ADEA leads profitability with a 26.5% profit margin vs 10.8%. ADEA appears more attractively valued with a PEG of 1.51. ADEA earns a higher WallStSmart Score of 72/100 (B).

ADEA

Strong Buy

72

out of 100

Grade: B

Growth: 7.3Profit: 9.5Value: 6.7Quality: 8.5
Piotroski: 7/9Altman Z: 1.90

SHOP

Buy

50

out of 100

Grade: C-

Growth: 7.3Profit: 7.0Value: 4.7Quality: 8.5
Piotroski: 3/9Altman Z: 6.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADEAUndervalued (+46.9%)

Margin of Safety

+46.9%

Fair Value

$35.84

Current Price

$28.98

$6.86 discount

UndervaluedFair: $35.84Overvalued
SHOPUndervalued (+18.4%)

Margin of Safety

+18.4%

Fair Value

$143.39

Current Price

$109.54

$33.85 discount

UndervaluedFair: $143.39Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADEA6 strengths · Avg: 9.3/10
Operating MarginProfitability
39.0%10/10

Strong operational efficiency at 39.0%

EPS GrowthGrowth
100.0%10/10

Earnings expanding 100.0% YoY

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

Return on EquityProfitability
28.5%9/10

Every $100 of equity generates 29 in profit

Profit MarginProfitability
26.5%9/10

Keeps 27 of every $100 in revenue as profit

Revenue GrowthGrowth
19.5%8/10

19.5% revenue growth

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

Areas to Watch

ADEA2 concerns · Avg: 4.0/10
PEG RatioValuation
1.514/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.904/10

Grey zone — moderate risk

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

Comparative Analysis Report

WallStSmart Research

Bull Case : ADEA

The strongest argument for ADEA centers on Operating Margin, EPS Growth, Debt/Equity. Profitability is solid with margins at 26.5% and operating margin at 39.0%. Revenue growth of 19.5% demonstrates continued momentum.

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.

Bear Case : ADEA

The primary concerns for ADEA are PEG Ratio, Altman Z-Score.

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.

Key Dynamics to Monitor

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.

Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ADEA scores higher overall (72/100 vs 50/100), backed by strong 26.5% margins and 19.5% revenue growth. SHOP offers better value entry with a 18.4% 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.

ADEIA CORP

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Adeia Inc., is a global consumer and entertainment products/solutions licensing company. The company is headquartered in San Jose, California.

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.

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