Shopify Inc (SHOP)vsSPS Commerce Inc (SPSC)
SHOP
Shopify Inc
$117.15
-4.29%
TECHNOLOGY · Cap: $158.83B
SPSC
SPS Commerce Inc
$73.39
+11.48%
TECHNOLOGY · Cap: $2.64B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 1501% more annual revenue ($12.37B vs $772.49M). SHOP leads profitability with a 10.8% profit margin vs 10.1%. SHOP appears more attractively valued with a PEG of 2.57. SHOP earns a higher WallStSmart Score of 50/100 (C-).
SHOP
Buy50
out of 100
Grade: C-
SPSC
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+17.7%
Fair Value
$142.03
Current Price
$117.15
$24.88 discount
Margin of Safety
+71.5%
Fair Value
$240.12
Current Price
$73.39
$166.73 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 34.3% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Areas to Watch
Trading at 12.2x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Earnings declined 63.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : SHOP
The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 34.3% demonstrates continued momentum.
Bull Case : SPSC
The strongest argument for SPSC centers on Debt/Equity, Altman Z-Score, Price/Book.
Bear Case : SHOP
The primary concerns for SHOP are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 120.0x leaves little room for execution misses.
Bear Case : SPSC
The primary concerns for SPSC are P/E Ratio, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
SHOP profiles as a growth stock while SPSC is a value play — different risk/reward profiles.
SHOP carries more volatility with a beta of 2.58 — expect wider price swings.
SHOP is growing revenue faster at 34.3% — sustainability is the question.
SHOP generates stronger free cash flow (476M), providing more financial flexibility.
Bottom Line
SHOP scores higher overall (50/100 vs 49/100) and 34.3% revenue growth. SPSC offers better value entry with a 71.5% margin of safety. 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.
SPS Commerce Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
SPS Commerce, Inc. provides cloud-based supply chain management solutions globally. The company is headquartered in Minneapolis, Minnesota.
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