Paychex Inc (PAYX)vsShopify Inc (SHOP)
PAYX
Paychex Inc
$92.55
+0.92%
TECHNOLOGY · Cap: $33.22B
SHOP
Shopify Inc
$116.78
-4.57%
TECHNOLOGY · Cap: $152.41B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 92% more annual revenue ($11.56B vs $6.03B). PAYX leads profitability with a 26.5% profit margin vs 10.6%. PAYX appears more attractively valued with a PEG of 1.74. PAYX earns a higher WallStSmart Score of 64/100 (C+).
PAYX
Buy64
out of 100
Grade: C+
SHOP
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-212.7%
Fair Value
$30.33
Current Price
$92.55
$62.22 premium
Margin of Safety
-1750.2%
Fair Value
$6.32
Current Price
$116.78
$110.46 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 41 in profit
Strong operational efficiency at 41.7%
Keeps 27 of every $100 in revenue as profit
18.3% revenue growth
Revenue surging 30.6% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 20.3%
Areas to Watch
Expensive relative to growth rate
Trading at 8.6x book value
Elevated debt levels
Weak financial health signals
Trading at 11.3x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : PAYX
The strongest argument for PAYX centers on Return on Equity, Operating Margin, Profit Margin. Profitability is solid with margins at 26.5% and operating margin at 41.7%. Revenue growth of 18.3% demonstrates continued momentum.
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.
Bear Case : PAYX
The primary concerns for PAYX are PEG Ratio, Price/Book, Debt/Equity.
Bear Case : SHOP
The primary concerns for SHOP are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 125.6x leaves little room for execution misses.
Key Dynamics to Monitor
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.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PAYX scores higher overall (64/100 vs 48/100), backed by strong 26.5% margins and 18.3% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Paychex Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Paychex, Inc. is an American provider of human resource, payroll, and benefits outsourcing services for small- to medium-sized businesses.
Visit Website →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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