Compare Fair Isaac Corporation (FICO) vs Shopify Inc. (SHOP) Stock

Fair Isaac Corporation (FICO) offers the better valuation at 53.1x trailing P/E (33.9x forward), making it the more compelling value choice. Analysts rate Fair Isaac Corporation (FICO) a "Buy" — based on 18 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Fair Isaac Corporation (FICO) is the cheapest at 53.1x versus Shopify Inc. at 128.4x. On forward P/E, Fair Isaac Corporation is actually cheaper at 33.9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Fair Isaac Corporation wins at 1.24x versus Shopify Inc.'s 2.25x — a reasonable growth-adjusted valuation.

Over the past 5 years, Fair Isaac Corporation (FICO) delivered a total return of +198.6%, compared to -7.8% for Shopify Inc. (SHOP). A $10,000 investment in FICO five years ago would be worth approximately $30K today (assuming dividends reinvested). Over 10 years, the gap is even starker: SHOP returned +52.9% versus FICO's +1316%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Fair Isaac Corporation (FICO) is the lower-risk stock at 1.00β versus Shopify Inc.'s 2.23β — meaning SHOP is approximately 123% more volatile than FICO relative to the S&P 500.

Fair Isaac Corporation (FICO) is the more profitable company, earning 32.7% net margin versus 10.7% for Shopify Inc. — meaning it keeps 32.7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FICO leads at 46.5% versus 12.7% for SHOP. At the gross margin level — before operating expenses — FICO leads at 82.2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Fair Isaac Corporation (FICO) is the more undervalued stock at a PEG of 1.24x versus Shopify Inc.'s 2.25x. A PEG below 1.5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Fair Isaac Corporation (FICO) trades at 33.9x forward P/E versus 65.9x for Shopify Inc. — 32.0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FICO: 49.8% to $2111.17.

None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Fair Isaac Corporation (FICO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.00), +1316% 10Y return). Shopify Inc. (SHOP) carries a higher beta of 2.23 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (FICO: +1316%, SHOP: +52.9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.