WallStSmart

Shopify Inc (SHOP)vsSoundHound AI Inc (SOUN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Shopify Inc generates 6741% more annual revenue ($11.56B vs $168.92M). SHOP leads profitability with a 10.6% profit margin vs -8.3%. SHOP earns a higher WallStSmart Score of 50/100 (C-).

SHOP

Buy

50

out of 100

Grade: C-

Growth: 7.3Profit: 7.0Value: 4.7Quality: 8.5
Piotroski: 3/9Altman Z: 4.73

SOUN

Avoid

27

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 5.3Quality: 6.5
Piotroski: 2/9Altman Z: -1.43
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SHOPUndervalued (+20.9%)

Margin of Safety

+20.9%

Fair Value

$147.83

Current Price

$127.67

$20.16 discount

UndervaluedFair: $147.83Overvalued
SOUNUndervalued (+13.5%)

Margin of Safety

+13.5%

Fair Value

$9.20

Current Price

$9.56

$0.36 discount

UndervaluedFair: $9.20Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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
$157.59B9/10

Large-cap with strong market position

Operating MarginProfitability
20.3%8/10

Strong operational efficiency at 20.3%

SOUN2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
59.4%10/10

Revenue surging 59.4% year-over-year

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Areas to Watch

SHOP4 concerns · Avg: 3.3/10
PEG RatioValuation
2.414/10

Expensive relative to growth rate

Price/BookValuation
12.4x4/10

Trading at 12.4x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
128.9x2/10

Premium valuation, high expectations priced in

SOUN4 concerns · Avg: 3.3/10
Price/BookValuation
8.7x4/10

Trading at 8.7x book value

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-4.3%2/10

ROE of -4.3% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : SOUN

The strongest argument for SOUN centers on Revenue Growth, Debt/Equity. Revenue growth of 59.4% demonstrates continued momentum.

Bear Case : SHOP

The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 128.9x leaves little room for execution misses.

Bear Case : SOUN

The primary concerns for SOUN are Price/Book, EPS Growth, Piotroski F-Score.

Key Dynamics to Monitor

SHOP profiles as a growth stock while SOUN is a hypergrowth play — different risk/reward profiles.

SOUN carries more volatility with a beta of 2.97 — expect wider price swings.

SOUN is growing revenue faster at 59.4% — sustainability is the question.

SHOP generates stronger free cash flow (715M), providing more financial flexibility.

Bottom Line

SHOP scores higher overall (50/100 vs 27/100) and 30.6% revenue growth. Both earn "Buy" and "Avoid" 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.

SoundHound AI Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

SoundHound AI, Inc. develops an independent voice artificial intelligence (AI) platform that enables businesses in all industries to deliver high-quality conversational experiences to their customers. The company is headquartered in Santa Clara, California.

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