WallStSmart

Red Violet Inc (RDVT)vsShopify Inc (SHOP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Shopify Inc generates 12704% more annual revenue ($11.56B vs $90.25M). RDVT leads profitability with a 14.6% profit margin vs 10.6%. RDVT trades at a lower P/E of 42.2x. SHOP earns a higher WallStSmart Score of 48/100 (D+).

RDVT

Hold

46

out of 100

Grade: D+

Growth: 6.7Profit: 6.5Value: 7.0Quality: 5.0

SHOP

Hold

48

out of 100

Grade: D+

Growth: 7.3Profit: 7.0Value: 2.0Quality: 8.5
Piotroski: 3/9Altman Z: 4.73
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RDVTUndervalued (+3.4%)

Margin of Safety

+3.4%

Fair Value

$42.59

Current Price

$37.05

$5.54 discount

UndervaluedFair: $42.59Overvalued
SHOPSignificantly Overvalued (-1729.9%)

Margin of Safety

-1729.9%

Fair Value

$6.39

Current Price

$118.42

$112.03 premium

UndervaluedFair: $6.39Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RDVT1 strengths · Avg: 8.0/10
Revenue GrowthGrowth
19.6%8/10

19.6% revenue growth

SHOP5 strengths · Avg: 9.4/10
Revenue GrowthGrowth
30.6%10/10

Revenue surging 30.6% 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
$151.59B9/10

Large-cap with strong market position

Operating MarginProfitability
20.3%8/10

Strong operational efficiency at 20.3%

Areas to Watch

RDVT3 concerns · Avg: 3.0/10
EPS GrowthGrowth
2.2%4/10

2.2% earnings growth

Market CapQuality
$541.68M3/10

Smaller company, higher risk/reward

P/E RatioValuation
42.2x2/10

Premium valuation, high expectations priced in

SHOP4 concerns · Avg: 2.8/10
Price/BookValuation
11.5x4/10

Trading at 11.5x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
9.562/10

Expensive relative to growth rate

P/E RatioValuation
123.6x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : RDVT

The strongest argument for RDVT centers on Revenue Growth. Revenue growth of 19.6% 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 : RDVT

The primary concerns for RDVT are EPS Growth, Market Cap, P/E Ratio. A P/E of 42.2x 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 123.6x 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

SHOP scores higher overall (48/100 vs 46/100) and 30.6% revenue growth. Both earn "Hold" 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.

Red Violet Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Red Violet, Inc., a software and services company, specializes in proprietary technologies and applies analytical capabilities to deliver identity intelligence in the United States. The company is headquartered in Boca Raton, Florida.

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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