WallStSmart

CSG Systems International Inc (CSGS)vsShopify Inc (SHOP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Shopify Inc generates 899% more annual revenue ($12.37B vs $1.24B). SHOP leads profitability with a 10.8% profit margin vs 5.1%. CSGS appears more attractively valued with a PEG of 1.56. CSGS earns a higher WallStSmart Score of 60/100 (C+).

CSGS

Buy

60

out of 100

Grade: C+

Growth: 6.0Profit: 6.0Value: 4.0Quality: 4.5
Piotroski: 2/9Altman Z: 2.35

SHOP

Buy

50

out of 100

Grade: C-

Growth: 7.3Profit: 7.0Value: 4.7Quality: 8.5
Piotroski: 3/9Altman Z: 4.73
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CSGSFair Value (-1.5%)

Margin of Safety

-1.5%

Fair Value

$78.38

Current Price

$80.35

$1.97 premium

UndervaluedFair: $78.38Overvalued
SHOPUndervalued (+25.9%)

Margin of Safety

+25.9%

Fair Value

$157.85

Current Price

$102.54

$55.31 discount

UndervaluedFair: $157.85Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CSGS2 strengths · Avg: 8.5/10
Return on EquityProfitability
22.1%9/10

Every $100 of equity generates 22 in profit

EPS GrowthGrowth
45.6%8/10

Earnings expanding 45.6% YoY

SHOP4 strengths · Avg: 9.8/10
Revenue GrowthGrowth
34.3%10/10

Revenue surging 34.3% 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
$143.40B9/10

Large-cap with strong market position

Areas to Watch

CSGS4 concerns · Avg: 3.8/10
PEG RatioValuation
1.564/10

Expensive relative to growth rate

P/E RatioValuation
35.9x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Profit MarginProfitability
5.1%3/10

5.1% margin — thin

SHOP4 concerns · Avg: 3.3/10
PEG RatioValuation
2.414/10

Expensive relative to growth rate

Price/BookValuation
9.9x4/10

Trading at 9.9x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
108.3x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : CSGS

The strongest argument for CSGS centers on Return on Equity, EPS Growth.

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 : CSGS

The primary concerns for CSGS are PEG Ratio, P/E Ratio, Revenue Growth. Debt-to-equity of 2.07 is elevated, increasing financial risk.

Bear Case : SHOP

The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 108.3x leaves little room for execution misses.

Key Dynamics to Monitor

CSGS profiles as a value stock while SHOP is a growth 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.

SHOP generates stronger free cash flow (469M), providing more financial flexibility.

Bottom Line

CSGS scores higher overall (60/100 vs 50/100). SHOP offers better value entry with a 25.9% 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.

CSG Systems International Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

CSG Systems International, Inc. provides revenue management, customer experience, and payment solutions primarily to the communications industry in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Greenwood Village, Colorado.

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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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