Comprehensive Stock Comparison
Compare Kingsoft Cloud Holdings Limited (KC) vs Shopify Inc. (SHOP) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | SHOP | 30.1% revenue growth vs KC's 10.5% |
| Quality / Margins | SHOP | 10.7% net margin vs KC's -10.8% |
| Stability / Safety | KC | Beta 1.61 vs SHOP's 2.23 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | SHOP | +7.8% vs KC's -17.5% |
| Efficiency (ROA) | SHOP | 8.1% ROA vs KC's -3.8%, ROIC 9.4% vs -17.7% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Kingsoft Cloud is a Chinese cloud service provider offering public cloud infrastructure and enterprise cloud solutions to businesses across various industries. It generates revenue primarily from public cloud services — including computing, storage, and content delivery — and enterprise cloud services for specific verticals like finance and healthcare. Its competitive advantage stems from its integration with the broader Kingsoft ecosystem — including gaming and office software — which creates cross-selling opportunities and customer stickiness.
Shopify is a comprehensive commerce platform that enables businesses of all sizes to create online stores, manage sales across multiple channels, and handle operations like payments, shipping, and inventory. It generates revenue primarily through subscription fees for its platform tiers — which account for about 30% of revenue — and merchant solutions like payment processing, shipping, and capital advances that make up the remaining 70%. The company's key advantage is its integrated ecosystem that combines easy-to-use store creation tools with a vast app marketplace and fulfillment network, creating high switching costs for merchants as they grow their businesses.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
SHOP leads in 2 of 6 categories (Financial Metrics, Profitability & Efficiency). KC leads in 2 (Valuation Metrics, Risk & Volatility). 1 tied.
Financial Metrics (TTM)
SHOP and KC operate at a comparable scale, with $11.6B and $9.0B in trailing revenue. SHOP is the more profitable business, keeping 10.7% of every revenue dollar as net income compared to KC's -10.8%. On growth, KC holds the edge at +33.7% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | KCKingsoft Cloud Ho… | SHOPShopify Inc. |
|---|---|---|
| RevenueTrailing 12 months | $9.0B | $11.6B |
| EBITDAEarnings before interest/tax | $1.3B | $1.5B |
| Net IncomeAfter-tax profit | -$971M | $1.2B |
| Free Cash FlowCash after capex | -$343M | $2.0B |
| Gross MarginGross profit ÷ Revenue | +16.2% | +48.1% |
| Operating MarginEBIT ÷ Revenue | -8.3% | +12.7% |
| Net MarginNet income ÷ Revenue | -10.8% | +10.7% |
| FCF MarginFCF ÷ Revenue | -3.8% | +17.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +33.7% | +30.6% |
| EPS Growth (YoY)Latest quarter vs prior year | +99.6% | -42.0% |
Valuation Metrics
| Metric | KCKingsoft Cloud Ho… | SHOPShopify Inc. |
|---|---|---|
| Market CapShares × price | $49.7B | $157.4B |
| Enterprise ValueMkt cap + debt − cash | $50.1B | $156.1B |
| Trailing P/EPrice ÷ TTM EPS | -11.42x | 128.44x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 65.90x |
| PEG RatioP/E ÷ EPS growth rate | — | 4.38x |
| EV / EBITDAEnterprise value multiple | — | 104.11x |
| Price / SalesMarket cap ÷ Revenue | 43.80x | 13.62x |
| Price / BookPrice ÷ Book value/share | 4.12x | 11.69x |
| Price / FCFMarket cap ÷ FCF | — | 78.44x |
Profitability & Efficiency
SHOP delivers a 9.1% return on equity — every $100 of shareholder capital generates $9 in annual profit, vs $-14 for KC. SHOP carries lower financial leverage with a 0.01x debt-to-equity ratio, signaling a more conservative balance sheet compared to KC's 0.94x. On the Piotroski fundamental quality scale (0–9), SHOP scores 6/9 vs KC's 4/9, reflecting solid financial health.
| Metric | KCKingsoft Cloud Ho… | SHOPShopify Inc. |
|---|---|---|
| ROE (TTM)Return on equity | -13.7% | +9.1% |
| ROA (TTM)Return on assets | -3.8% | +8.1% |
| ROICReturn on invested capital | -17.7% | +9.4% |
| ROCEReturn on capital employed | -20.9% | +11.0% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 6 |
| Debt / EquityFinancial leverage | 0.94x | 0.01x |
| Net DebtTotal debt minus cash | $2.5B | -$1.4B |
| Cash & Equiv.Liquid assets | $2.6B | $1.5B |
| Total DebtShort + long-term debt | $5.2B | $188M |
| Interest CoverageEBIT ÷ Interest expense | -1.40x | — |
Total Returns (with DRIP)
A $10,000 investment in SHOP five years ago would be worth $9,216 today (with dividends reinvested), compared to $2,210 for KC. Over the past 12 months, SHOP leads with a +7.8% total return vs KC's -17.5%. The 3-year compound annual growth rate (CAGR) favors KC at 51.8% vs SHOP's 43.2% — a key indicator of consistent wealth creation.
| Metric | KCKingsoft Cloud Ho… | SHOPShopify Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +23.3% | -23.2% |
| 1-Year ReturnPast 12 months | -17.5% | +7.8% |
| 3-Year ReturnCumulative with dividends | +250.1% | +193.5% |
| 5-Year ReturnCumulative with dividends | -77.9% | -7.8% |
| 10-Year ReturnCumulative with dividends | -43.5% | +5294.6% |
| CAGR (3Y)Annualised 3-year return | +51.8% | +43.2% |
Risk & Volatility
KC is the less volatile stock with a 1.61 beta — it tends to amplify market swings less than SHOP's 2.23 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | KCKingsoft Cloud Ho… | SHOPShopify Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.61x | 2.23x |
| 52-Week HighHighest price in past year | $19.57 | $182.19 |
| 52-Week LowLowest price in past year | $10.29 | $69.84 |
| % of 52W HighCurrent price vs 52-week peak | +68.9% | +66.3% |
| RSI (14)Momentum oscillator 0–100 | 45.8 | 48.7 |
| Avg Volume (50D)Average daily shares traded | 1.1M | 10.0M |
Analyst Outlook
Wall Street rates KC as "Buy" and SHOP as "Buy". Consensus price targets imply 36.8% upside for SHOP (target: $165) vs 35.8% for KC (target: $18).
| Metric | KCKingsoft Cloud Ho… | SHOPShopify Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $18.30 | $165.16 |
| # AnalystsCovering analysts | 10 | 63 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | May 20 | Feb 26 | Change |
|---|---|---|---|
| Kingsoft Cloud Hold… (KC) | 100 | 57.17 | -42.8% |
| Shopify Inc. (SHOP) | 100 | 174.41 | +74.4% |
Shopify Inc. (SHOP) returned -8% over 5 years vs Kingsoft Cloud Hold… (KC)'s -78%.
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Kingsoft Cloud Hold… (KC) | $2.3B | $7.8B | +237.8% |
| Shopify Inc. (SHOP) | $389M | $11.6B | +2868.2% |
Shopify Inc.'s revenue grew from $389M (2016) to $11.6B (2025) — a 45.8% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Kingsoft Cloud Hold… (KC) | -45.4% | -25.3% | +44.3% |
| Shopify Inc. (SHOP) | -9.1% | 10.7% | +217.3% |
Shopify Inc.'s net margin went from -9% (2016) to 11% (2025).
Chart 4P/E Ratio History — 4 Years
| Stock | 2020 | 2025 | Change |
|---|---|---|---|
| Shopify Inc. (SHOP) | 435.4 | 171.2 | -60.7% |
Shopify Inc. has traded in a 61x–435x P/E range over 4 years; current trailing P/E is ~128x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Kingsoft Cloud Hold… (KC) | -33.23 | -8.1 | +75.6% |
| Shopify Inc. (SHOP) | -0.04 | 0.94 | +2332.8% |
Shopify Inc.'s EPS grew from $-0.04 (2016) to $0.94 (2025).
Chart 6Free Cash Flow — 5 Years
Kingsoft Cloud Holdings Limited generated $-3B FCF in 2024 (-112% vs 2021). Shopify Inc. generated $2B FCF in 2025 (+314% vs 2021).
KC vs SHOP: Frequently Asked Questions
8 questions · data-driven answers · updated daily
01Is KC or SHOP a better buy right now?
Shopify Inc. (SHOP) offers the better valuation at 128.4x trailing P/E (65.9x forward), making it the more compelling value choice. Analysts rate Kingsoft Cloud Holdings Limited (KC) a "Buy" — based on 10 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.
02Which is the better long-term investment — KC or SHOP?
Over the past 5 years, Shopify Inc. (SHOP) delivered a total return of -7.8%, compared to -77.9% for Kingsoft Cloud Holdings Limited (KC). A $10,000 investment in SHOP five years ago would be worth approximately $9K today (assuming dividends reinvested). Over 10 years, the gap is even starker: SHOP returned +52.9% versus KC's -43.5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — KC or SHOP?
By beta (market sensitivity over 5 years), Kingsoft Cloud Holdings Limited (KC) is the lower-risk stock at 1.61β versus Shopify Inc.'s 2.23β — meaning SHOP is approximately 39% more volatile than KC relative to the S&P 500. On balance sheet safety, Shopify Inc. (SHOP) carries a lower debt/equity ratio of 1% versus 94% for Kingsoft Cloud Holdings Limited — giving it more financial flexibility in a downturn.
04Which has better profit margins — KC or SHOP?
Shopify Inc. (SHOP) is the more profitable company, earning 10.7% net margin versus -25.3% for Kingsoft Cloud Holdings Limited — meaning it keeps 10.7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SHOP leads at 12.7% versus -22.3% for KC. At the gross margin level — before operating expenses — SHOP leads at 48.1%, 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.
05Is KC or SHOP more undervalued right now?
Analyst consensus price targets imply the most upside for SHOP: 36.8% to $165.16.
06Which pays a better dividend — KC or SHOP?
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.
07Is KC or SHOP better for a retirement portfolio?
For long-horizon retirement investors, Kingsoft Cloud Holdings Limited (KC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding. 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 (KC: -43.5%, 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.
08What are the main differences between KC and SHOP?
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.
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