Paychex Inc (PAYX)vsShopify Inc (SHOP)
PAYX
Paychex Inc
$108.21
-0.96%
TECHNOLOGY · Cap: $39.74B
SHOP
Shopify Inc
$168.22
+1.45%
TECHNOLOGY · Cap: $215.16B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 101% more annual revenue ($13.27B vs $6.60B). PAYX leads profitability with a 27.4% profit margin vs 14.5%. PAYX appears more attractively valued with a PEG of 1.85. PAYX earns a higher WallStSmart Score of 68/100 (B-).
PAYX
Strong Buy68
out of 100
Grade: B-
SHOP
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+10.9%
Fair Value
$106.40
Current Price
$108.21
$1.81 discount
Margin of Safety
+22.4%
Fair Value
$150.73
Current Price
$168.22
$17.49 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 49 in profit
Strong operational efficiency at 38.5%
Keeps 27 of every $100 in revenue as profit
Mega-cap, among the largest globally
Revenue surging 33.7% year-over-year
Earnings expanding 68.1% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Areas to Watch
Expensive relative to growth rate
Trading at 10.4x book value
Elevated debt levels
Distress zone — elevated risk
Expensive relative to growth rate
Trading at 17.1x book value
Weak financial health signals
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 27.4% and operating margin at 38.5%.
Bull Case : SHOP
The strongest argument for SHOP centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 33.7% 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 PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 112.0x leaves little room for execution misses.
Key Dynamics to Monitor
PAYX profiles as a mature stock while SHOP is a growth play — different risk/reward profiles.
SHOP carries more volatility with a beta of 2.63 — 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.
Bottom Line
PAYX scores higher overall (68/100 vs 63/100), backed by strong 27.4% margins. SHOP offers better value entry with a 22.4% 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.
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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