WallStSmart

Shopify Inc (SHOP)vsSonos Inc (SONO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Shopify Inc generates 790% more annual revenue ($13.27B vs $1.49B). SHOP leads profitability with a 14.5% profit margin vs 3.8%. SONO trades at a lower P/E of 38.8x. SHOP earns a higher WallStSmart Score of 63/100 (C+).

SHOP

Buy

63

out of 100

Grade: C+

Growth: 10.0Profit: 7.5Value: 4.7Quality: 8.5
Piotroski: 3/9Altman Z: 6.69

SONO

Hold

47

out of 100

Grade: D+

Growth: 6.0Profit: 4.5Value: 3.7Quality: 7.0
Piotroski: 3/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SHOPUndervalued (+22.4%)

Margin of Safety

+22.4%

Fair Value

$150.73

Current Price

$148.91

$1.82 discount

UndervaluedFair: $150.73Overvalued
SONOSignificantly Overvalued (-32.2%)

Margin of Safety

-32.2%

Fair Value

$12.48

Current Price

$16.41

$3.93 premium

UndervaluedFair: $12.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SHOP5 strengths · Avg: 10.0/10
Market CapQuality
$215.16B10/10

Mega-cap, among the largest globally

Revenue GrowthGrowth
33.7%10/10

Revenue surging 33.7% year-over-year

EPS GrowthGrowth
68.1%10/10

Earnings expanding 68.1% YoY

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
6.6910/10

Safe zone — low bankruptcy risk

SONO2 strengths · Avg: 9.5/10
EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

Areas to Watch

SHOP4 concerns · Avg: 3.3/10
PEG RatioValuation
2.364/10

Expensive relative to growth rate

Price/BookValuation
15.1x4/10

Trading at 15.1x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
112.0x2/10

Premium valuation, high expectations priced in

SONO4 concerns · Avg: 3.3/10
P/E RatioValuation
38.8x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
6.2%3/10

ROE of 6.2% — below average capital efficiency

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Operating MarginProfitability
4.4%3/10

Operating margin of 4.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : SHOP

The strongest argument for SHOP centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 33.7% demonstrates continued momentum.

Bull Case : SONO

The strongest argument for SONO centers on EPS Growth, 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.

Bear Case : SONO

The primary concerns for SONO are P/E Ratio, Return on Equity, Profit Margin. Thin 3.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

SHOP profiles as a growth stock while SONO is a value 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

SHOP scores higher overall (63/100 vs 47/100) and 33.7% 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.

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.

Sonos Inc

TECHNOLOGY · CONSUMER ELECTRONICS · USA

Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.

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