Shopify Inc (SHOP)vsWaters Corporation (WAT)
SHOP
Shopify Inc
$118.42
+1.95%
TECHNOLOGY · Cap: $151.59B
WAT
Waters Corporation
$302.32
+0.13%
HEALTHCARE · Cap: $29.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 265% more annual revenue ($11.56B vs $3.17B). WAT leads profitability with a 20.3% profit margin vs 10.6%. WAT appears more attractively valued with a PEG of 1.25. WAT earns a higher WallStSmart Score of 60/100 (C).
SHOP
Hold48
out of 100
Grade: D+
WAT
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1729.9%
Fair Value
$6.39
Current Price
$118.42
$112.03 premium
Margin of Safety
-349.9%
Fair Value
$73.17
Current Price
$302.32
$229.15 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 30.6% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 20.3%
Strong operational efficiency at 33.8%
Safe zone — low bankruptcy risk
Every $100 of equity generates 29 in profit
Keeps 20 of every $100 in revenue as profit
Areas to Watch
Trading at 11.5x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Moderate valuation
Earnings declined 3.1%
Comparative Analysis Report
WallStSmart ResearchBull 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 : WAT
The strongest argument for WAT centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 20.3% and operating margin at 33.8%. PEG of 1.25 suggests the stock is reasonably priced for its growth.
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.
Bear Case : WAT
The primary concerns for WAT are P/E Ratio, EPS Growth.
Key Dynamics to Monitor
SHOP profiles as a growth stock while WAT is a mature play — different risk/reward profiles.
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.
Bottom Line
WAT scores higher overall (60/100 vs 48/100), backed by strong 20.3% margins. 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.
Waters Corporation
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.
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