WallStSmart

HubSpot Inc (HUBS)vsShopify Inc (SHOP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Shopify Inc generates 275% more annual revenue ($12.37B vs $3.30B). SHOP leads profitability with a 10.8% profit margin vs 3.0%. HUBS appears more attractively valued with a PEG of 0.30. HUBS earns a higher WallStSmart Score of 59/100 (C).

HUBS

Buy

59

out of 100

Grade: C

Growth: 9.3Profit: 4.0Value: 7.3Quality: 6.0
Piotroski: 3/9Altman Z: 1.48

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

HUBSUndervalued (+59.7%)

Margin of Safety

+59.7%

Fair Value

$519.57

Current Price

$212.64

$306.93 discount

UndervaluedFair: $519.57Overvalued
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

HUBS4 strengths · Avg: 9.3/10
PEG RatioValuation
0.3010/10

Growing faster than its price suggests

EPS GrowthGrowth
968.0%10/10

Earnings expanding 968.0% YoY

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
23.4%8/10

Revenue surging 23.4% year-over-year

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

HUBS4 concerns · Avg: 3.0/10
Return on EquityProfitability
5.0%3/10

ROE of 5.0% — below average capital efficiency

Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Operating MarginProfitability
3.3%3/10

Operating margin of 3.3%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : HUBS

The strongest argument for HUBS centers on PEG Ratio, EPS Growth, Debt/Equity. Revenue growth of 23.4% demonstrates continued momentum. PEG of 0.30 suggests the stock is reasonably priced for its 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 : HUBS

The primary concerns for HUBS are Return on Equity, Profit Margin, Operating Margin. A P/E of 98.9x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.

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

HUBS scores higher overall (59/100 vs 50/100) and 23.4% revenue growth. SHOP offers better value entry with a 18.4% 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.

HubSpot Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

HubSpot, Inc. provides a cloud-based customer relationship management (CRM) platform for companies in the Americas, Europe, and Asia Pacific. The company is headquartered in Cambridge, Massachusetts.

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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