Shopify Inc (SHOP)vsUnity Software Inc (U)
SHOP
Shopify Inc
$110.41
-1.19%
TECHNOLOGY · Cap: $136.82B
U
Unity Software Inc
$28.16
+5.35%
TECHNOLOGY · Cap: $11.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 569% more annual revenue ($12.37B vs $1.85B). SHOP leads profitability with a 10.8% profit margin vs -21.8%. SHOP earns a higher WallStSmart Score of 50/100 (C-).
SHOP
Buy50
out of 100
Grade: C-
U
Avoid32
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+26.1%
Fair Value
$158.22
Current Price
$110.41
$47.81 discount
Margin of Safety
+56.8%
Fair Value
$45.46
Current Price
$28.16
$17.30 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
No standout strengths identified
Areas to Watch
Expensive relative to growth rate
Trading at 10.7x book value
Weak financial health signals
Premium valuation, high expectations priced in
0.0% earnings growth
ROE of -11.6% — below average capital efficiency
Distress zone — elevated risk
Currently unprofitable
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 : U
Revenue growth of 10.1% demonstrates continued momentum.
Bear Case : SHOP
The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 103.4x leaves little room for execution misses.
Bear Case : U
The primary concerns for U are EPS Growth, Return on Equity, Altman Z-Score.
Key Dynamics to Monitor
SHOP profiles as a growth stock while U is a turnaround play — different risk/reward profiles.
SHOP carries more volatility with a beta of 2.64 — expect wider price swings.
SHOP is growing revenue faster at 34.3% — sustainability is the question.
SHOP generates stronger free cash flow (469M), providing more financial flexibility.
Bottom Line
SHOP scores higher overall (50/100 vs 32/100) and 34.3% revenue growth. U offers better value entry with a 56.8% margin of safety. 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.
Unity Software Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Unity Software Inc. operates a real-time 3D development platform. The company is headquartered in San Francisco, California.
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