Shopify Inc (SHOP)vsZoom Video Communications Inc (ZM)
SHOP
Shopify Inc
$118.42
+1.95%
TECHNOLOGY · Cap: $151.59B
ZM
Zoom Video Communications Inc
$78.11
+2.80%
TECHNOLOGY · Cap: $22.50B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 137% more annual revenue ($11.56B vs $4.87B). ZM leads profitability with a 39.0% profit margin vs 10.6%. ZM appears more attractively valued with a PEG of 4.21. ZM earns a higher WallStSmart Score of 70/100 (B-).
SHOP
Hold48
out of 100
Grade: D+
ZM
Strong Buy70
out of 100
Grade: B-
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
+68.1%
Fair Value
$289.22
Current Price
$78.11
$211.11 discount
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%
Keeps 39 of every $100 in revenue as profit
Earnings expanding 91.5% YoY
Safe zone — low bankruptcy risk
Every $100 of equity generates 20 in profit
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Trading at 11.5x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Expensive relative to growth rate
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 : ZM
The strongest argument for ZM centers on Profit Margin, EPS Growth, Altman Z-Score. Profitability is solid with margins at 39.0% and operating margin at 21.5%.
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 : ZM
The primary concerns for ZM are PEG Ratio.
Key Dynamics to Monitor
SHOP profiles as a growth stock while ZM 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
ZM scores higher overall (70/100 vs 48/100), backed by strong 39.0% margins. Both earn "Strong 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.
Zoom Video Communications Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Zoom Video Communications, Inc. provides a premier video communications platform in the Americas, Asia Pacific, Europe, the Middle East, and Africa. The company is headquartered in San Jose, California.
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