WallStSmart

Appfolio Inc (APPF)vsShopify Inc (SHOP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Shopify Inc generates 1175% more annual revenue ($13.27B vs $1.04B). APPF leads profitability with a 15.1% profit margin vs 14.5%. SHOP appears more attractively valued with a PEG of 2.61. SHOP earns a higher WallStSmart Score of 62/100 (C+).

APPF

Buy

58

out of 100

Grade: C

Growth: 8.7Profit: 9.0Value: 5.3Quality: 8.5
Piotroski: 3/9Altman Z: 5.09

SHOP

Buy

62

out of 100

Grade: C+

Growth: 10.0Profit: 7.5Value: 4.0Quality: 8.5
Piotroski: 3/9Altman Z: 6.61
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

APPFUndervalued (+32.6%)

Margin of Safety

+32.6%

Fair Value

$265.35

Current Price

$208.48

$56.87 discount

UndervaluedFair: $265.35Overvalued
SHOPUndervalued (+22.9%)

Margin of Safety

+22.9%

Fair Value

$151.66

Current Price

$128.79

$22.87 discount

UndervaluedFair: $151.66Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

APPF4 strengths · Avg: 9.5/10
Return on EquityProfitability
32.3%10/10

Every $100 of equity generates 32 in profit

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
5.0910/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
19.3%8/10

19.3% revenue growth

SHOP5 strengths · Avg: 9.8/10
Revenue GrowthGrowth
33.7%10/10

Revenue surging 33.7% year-over-year

EPS GrowthGrowth
68.1%10/10

Earnings expanding 68.1% YoY

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
6.6110/10

Safe zone — low bankruptcy risk

Market CapQuality
$188.28B9/10

Large-cap with strong market position

Areas to Watch

APPF4 concerns · Avg: 2.8/10
Price/BookValuation
14.0x4/10

Trading at 14.0x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
7.452/10

Expensive relative to growth rate

P/E RatioValuation
46.9x2/10

Premium valuation, high expectations priced in

SHOP4 concerns · Avg: 2.8/10
Price/BookValuation
13.1x4/10

Trading at 13.1x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.612/10

Expensive relative to growth rate

P/E RatioValuation
98.0x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : APPF

The strongest argument for APPF centers on Return on Equity, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 15.1% and operating margin at 18.9%. Revenue growth of 19.3% demonstrates continued momentum.

Bull Case : SHOP

The strongest argument for SHOP centers on Revenue Growth, EPS Growth, Debt/Equity. Revenue growth of 33.7% demonstrates continued momentum.

Bear Case : APPF

The primary concerns for APPF are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 46.9x leaves little room for execution misses.

Bear Case : SHOP

The primary concerns for SHOP are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 98.0x leaves little room for execution misses.

Key Dynamics to Monitor

SHOP carries more volatility with a beta of 2.62 — expect wider price swings.

SHOP is growing revenue faster at 33.7% — sustainability is the question.

SHOP generates stronger free cash flow (654M), providing more financial flexibility.

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

Bottom Line

SHOP scores higher overall (62/100 vs 58/100) and 33.7% revenue growth. APPF offers better value entry with a 32.6% 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.

Appfolio Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

AppFolio, Inc. provides industry-specific cloud-based enterprise software data analytics, services and solutions for the real estate industry. The company is headquartered in Santa Barbara, California.

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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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