SHOP
Shopify Inc.
Software - Application
Market Cap$136.90B
5Y Perf.+39.1%
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Stock Comparison
SHOP vs GDDY
Revenue, margins, valuation, and 5-year total return — side by side.
GDDY
GoDaddy Inc.
Software - Infrastructure
Market Cap$11.36B
5Y Perf.+10.3%
SHOP vs GDDY — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | SHOP | GDDY |
|---|---|---|
| Industry | Software - Application | Software - Infrastructure |
| Market Cap | $136.90B | $11.36B |
| Revenue (TTM) | $12.37B | $5.02B |
| Net Income (TTM) | $1.33B | $870M |
| Gross Margin | 48.0% | 61.8% |
| Operating Margin | 13.3% | 17.6% |
| Forward P/E | 57.5x | 12.2x |
| Total Debt | $188M | $3.86B |
| Cash & Equiv. | $1.53B | $1.08B |
SHOP vs GDDY — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
SHOP
GDDY
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Shopify Inc. (SHOP) | 100 | 139.1 | +39.1% |
| GoDaddy Inc. (GDDY) | 100 | 110.3 | +10.3% |
Price return only. Dividends and distributions are not included.
Quick Verdict: SHOP vs GDDY
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: GDDY leads in 4 of 7 categories, making it the strongest pick for valuation and capital efficiency and profitability and margin quality. Shopify Inc. is the stronger pick specifically for growth and revenue expansion and recent price momentum and sentiment. As sector peers, any of these can serve as alternatives in the same allocation.
SHOP
Shopify Inc.
The Growth Play
SHOP is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 30.1%, EPS growth -39.4%, 3Y rev CAGR 27.3%
- 37.0% 10Y total return vs GDDY's 182.0%
- Lower volatility, beta 2.64, Low D/E 1.4%, current ratio 5.96x
Best for: growth exposure and long-term compounding
GDDY
GoDaddy Inc.
The Income Pick
GDDY carries the broadest edge in this set and is the clearest fit for income & stability and defensive.
- Dividend streak 1 yrs, beta 0.42
- Beta 0.42, current ratio 0.61x
- Lower P/E (12.2x vs 57.5x)
Best for: income & stability and defensive
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | SHOP | 30.1% revenue growth vs GDDY's 8.3% |
| Value | GDDY | Lower P/E (12.2x vs 57.5x) |
| Quality / Margins | GDDY | 17.3% margin vs SHOP's 10.8% |
| Stability / Safety | GDDY | Beta 0.42 vs SHOP's 2.64 |
| Dividends | Tie | Neither stock pays a meaningful dividend |
| Momentum (1Y) | SHOP | +12.4% vs GDDY's -53.3% |
| Efficiency (ROA) | GDDY | 10.7% ROA vs SHOP's 9.0%, ROIC 26.2% vs 9.4% |
SHOP vs GDDY — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
SHOP vs GDDY — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLGDDYLAGGINGSHOP
SHOPShopify Inc.
1leads
GDDYGoDaddy Inc.
2leads
6 Total Categories
CATEGORYLEADERvs SHOPMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
GDDY4/6
Valuation MetricsMultiples, price ratios, and targets
GDDY5/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
Tied
—
Total Returns1Y, 3Y, 5Y total returns with dividends
SHOP4/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
—
—
Income & Cash Flow (Last 12 Months)
GDDY leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
SHOP is the larger business by revenue, generating $12.4B annually — 2.5x GDDY's $5.0B. GDDY is the more profitable business, keeping 17.3% of every revenue dollar as net income compared to SHOP's 10.8%. On growth, SHOP holds the edge at +34.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | SHOPShopify Inc. | GDDYGoDaddy Inc. |
|---|---|---|
| RevenueTrailing 12 months | $12.4B | $5.0B |
| EBITDAEarnings before interest/tax | $1.7B | $1.1B |
| Net IncomeAfter-tax profit | $1.3B | $870M |
| Free Cash FlowCash after capex | $1.7B | $1.6B |
| Gross MarginGross profit ÷ Revenue | +48.0% | +61.8% |
| Operating MarginEBIT ÷ Revenue | +13.3% | +17.6% |
| Net MarginNet income ÷ Revenue | +10.8% | +17.3% |
| FCF MarginFCF ÷ Revenue | +13.4% | +32.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | +34.3% | +6.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +15.1% | +6.0% |
GDDY leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
GDDY leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
At 13.7x trailing earnings, GDDY trades at a 88% valuation discount to SHOP's 112.2x P/E. On an enterprise value basis, GDDY's 10.6x EV/EBITDA is more attractive than SHOP's 90.4x.
| Metric | SHOPShopify Inc. | GDDYGoDaddy Inc. |
|---|---|---|
| Market CapShares × price | $136.9B | $11.4B |
| Enterprise ValueMkt cap + debt − cash | $135.6B | $14.1B |
| Trailing P/EPrice ÷ TTM EPS | 112.17x | 13.68x |
| Forward P/EPrice ÷ next-FY EPS est. | 57.48x | 12.24x |
| PEG RatioP/E ÷ EPS growth rate | 3.83x | — |
| EV / EBITDAEnterprise value multiple | 90.43x | 10.58x |
| Price / SalesMarket cap ÷ Revenue | 11.85x | 2.29x |
| Price / BookPrice ÷ Book value/share | 10.21x | 53.93x |
| Price / FCFMarket cap ÷ FCF | 68.21x | 7.21x |
GDDY leads this category, winning 5 of 6 comparable metrics.
Profitability & Efficiency
Evenly matched — SHOP and GDDY each lead in 4 of 8 comparable metrics.
Profitability & Efficiency
GDDY delivers a 3.7% return on equity — every $100 of shareholder capital generates $4 in annual profit, vs $11 for SHOP. SHOP carries lower financial leverage with a 0.01x debt-to-equity ratio, signaling a more conservative balance sheet compared to GDDY's 17.96x. On the Piotroski fundamental quality scale (0–9), SHOP scores 6/9 vs GDDY's 5/9, reflecting solid financial health.
| Metric | SHOPShopify Inc. | GDDYGoDaddy Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +10.5% | +3.7% |
| ROA (TTM)Return on assets | +9.0% | +10.7% |
| ROICReturn on invested capital | +9.4% | +26.2% |
| ROCEReturn on capital employed | +11.4% | +21.4% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 0.01x | 17.96x |
| Net DebtTotal debt minus cash | -$1.3B | $2.8B |
| Cash & Equiv.Liquid assets | $1.5B | $1.1B |
| Total DebtShort + long-term debt | $188M | $3.9B |
| Interest CoverageEBIT ÷ Interest expense | — | 10.89x |
Evenly matched — SHOP and GDDY each lead in 4 of 8 comparable metrics.
Total Returns (Dividends Reinvested)
SHOP leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in GDDY five years ago would be worth $10,494 today (with dividends reinvested), compared to $9,665 for SHOP. Over the past 12 months, SHOP leads with a +12.4% total return vs GDDY's -53.3%. The 3-year compound annual growth rate (CAGR) favors SHOP at 17.9% vs GDDY's 6.7% — a key indicator of consistent wealth creation.
| Metric | SHOPShopify Inc. | GDDYGoDaddy Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -32.9% | -28.1% |
| 1-Year ReturnPast 12 months | +12.4% | -53.3% |
| 3-Year ReturnCumulative with dividends | +63.8% | +21.6% |
| 5-Year ReturnCumulative with dividends | -3.3% | +4.9% |
| 10-Year ReturnCumulative with dividends | +3703.8% | +182.0% |
| CAGR (3Y)Annualised 3-year return | +17.9% | +6.7% |
SHOP leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
Evenly matched — SHOP and GDDY each lead in 1 of 2 comparable metrics.
Risk & Volatility
GDDY is the less volatile stock with a 0.42 beta — it tends to amplify market swings less than SHOP's 2.64 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. SHOP currently trades 57.9% from its 52-week high vs GDDY's 44.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | SHOPShopify Inc. | GDDYGoDaddy Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.64x | 0.42x |
| 52-Week HighHighest price in past year | $182.19 | $190.50 |
| 52-Week LowLowest price in past year | $88.14 | $73.06 |
| % of 52W HighCurrent price vs 52-week peak | +57.9% | +44.7% |
| RSI (14)Momentum oscillator 0–100 | 36.1 | 55.4 |
| Avg Volume (50D)Average daily shares traded | 8.4M | 2.3M |
Evenly matched — SHOP and GDDY each lead in 1 of 2 comparable metrics.
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates SHOP as "Buy" and GDDY as "Buy". Consensus price targets imply 56.3% upside for SHOP (target: $165) vs 33.0% for GDDY (target: $113).
| Metric | SHOPShopify Inc. | GDDYGoDaddy Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $164.75 | $113.29 |
| # AnalystsCovering analysts | 63 | 38 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | 1 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +14.1% |
Insufficient data to determine a leader in this category.
Key Takeaway
GDDY leads in 2 of 6 categories (Income & Cash Flow, Valuation Metrics). SHOP leads in 1 (Total Returns). 2 tied.
Best OverallGoDaddy Inc. (GDDY)Leads 2 of 6 categories
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SHOP vs GDDY: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is SHOP or GDDY a better buy right now?
For growth investors, Shopify Inc.
(SHOP) is the stronger pick with 30. 1% revenue growth year-over-year, versus 8. 3% for GoDaddy Inc. (GDDY). GoDaddy Inc. (GDDY) offers the better valuation at 13. 7x trailing P/E (12. 2x forward), making it the more compelling value choice. Analysts rate Shopify Inc. (SHOP) a "Buy" — based on 63 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 has the better valuation — SHOP or GDDY?
On trailing P/E, GoDaddy Inc.
(GDDY) is the cheapest at 13. 7x versus Shopify Inc. at 112. 2x. On forward P/E, GoDaddy Inc. is actually cheaper at 12. 2x.
03Which is the better long-term investment — SHOP or GDDY?
Over the past 5 years, GoDaddy Inc.
(GDDY) delivered a total return of +4. 9%, compared to -3. 3% for Shopify Inc. (SHOP). Over 10 years, the gap is even starker: SHOP returned +37. 0% versus GDDY's +182. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — SHOP or GDDY?
By beta (market sensitivity over 5 years), GoDaddy Inc.
(GDDY) is the lower-risk stock at 0. 42β versus Shopify Inc. 's 2. 64β — meaning SHOP is approximately 525% more volatile than GDDY relative to the S&P 500. On balance sheet safety, Shopify Inc. (SHOP) carries a lower debt/equity ratio of 1% versus 18% for GoDaddy Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — SHOP or GDDY?
By revenue growth (latest reported year), Shopify Inc.
(SHOP) is pulling ahead at 30. 1% versus 8. 3% for GoDaddy Inc. (GDDY). On earnings-per-share growth, the picture is similar: GoDaddy Inc. grew EPS -3. 4% year-over-year, compared to -39. 4% for Shopify Inc.. Over a 3-year CAGR, SHOP leads at 27. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — SHOP or GDDY?
GoDaddy Inc.
(GDDY) is the more profitable company, earning 17. 7% net margin versus 10. 7% for Shopify Inc. — meaning it keeps 17. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: GDDY leads at 22. 9% versus 12. 7% for SHOP. At the gross margin level — before operating expenses — GDDY leads at 61. 6%, 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.
07Is SHOP or GDDY more undervalued right now?
On forward earnings alone, GoDaddy Inc.
(GDDY) trades at 12. 2x forward P/E versus 57. 5x for Shopify Inc. — 45. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SHOP: 56. 3% to $164. 75.
08Which pays a better dividend — SHOP or GDDY?
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.
09Is SHOP or GDDY better for a retirement portfolio?
For long-horizon retirement investors, GoDaddy Inc.
(GDDY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 42), +182. 0% 10Y return). Shopify Inc. (SHOP) carries a higher beta of 2. 64 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (GDDY: +182. 0%, SHOP: +37. 0%), 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.
10What are the main differences between SHOP and GDDY?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: SHOP is a mid-cap high-growth stock; GDDY is a mid-cap deep-value stock. 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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Revenue Growth>
%
(SHOP: 34.3% · GDDY: 6.1%)Net Margin>
%
(SHOP: 10.8% · GDDY: 17.3%)P/E Ratio<
x
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