Shopify Inc (SHOP)vsWestern Digital Corporation (WDC)
SHOP
Shopify Inc
$116.78
-4.57%
TECHNOLOGY · Cap: $152.41B
WDC
Western Digital Corporation
$293.10
-7.52%
TECHNOLOGY · Cap: $100.21B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 8% more annual revenue ($11.56B vs $10.73B). WDC leads profitability with a 35.6% profit margin vs 10.6%. WDC appears more attractively valued with a PEG of 0.69. WDC earns a higher WallStSmart Score of 55/100 (C).
SHOP
Hold48
out of 100
Grade: D+
WDC
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1750.2%
Fair Value
$6.32
Current Price
$116.78
$110.46 premium
Margin of Safety
-311.2%
Fair Value
$66.57
Current Price
$293.10
$226.53 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%
Every $100 of equity generates 41 in profit
Keeps 36 of every $100 in revenue as profit
Large-cap with strong market position
Growing faster than its price suggests
Areas to Watch
Trading at 11.3x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Moderate valuation
Trading at 14.0x book value
Revenue declined 41.0%
Earnings declined 95.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : SHOP
The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 30.6% demonstrates continued momentum.
Bull Case : WDC
The strongest argument for WDC centers on Return on Equity, Profit Margin, Market Cap. Profitability is solid with margins at 35.6% and operating margin at 15.4%. PEG of 0.69 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 125.6x leaves little room for execution misses.
Bear Case : WDC
The primary concerns for WDC are P/E Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
SHOP profiles as a growth stock while WDC is a declining 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
WDC scores higher overall (55/100 vs 48/100), backed by strong 35.6% 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.
Western Digital Corporation
TECHNOLOGY · COMPUTER HARDWARE · USA
Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.
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