Comprehensive Stock Comparison
Compare The Trade Desk, Inc. (TTD) 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 TTD's 18.5% |
| Value | TTD | Lower P/E (21.1x vs 65.9x), PEG 1.60 vs 2.25 |
| Quality / Margins | TTD | 15.3% net margin vs SHOP's 10.7% |
| Stability / Safety | TTD | Beta 1.67 vs SHOP's 2.23 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | SHOP | +7.8% vs TTD's -66.1% |
| Efficiency (ROA) | SHOP | 8.1% ROA vs TTD's 7.2%, ROIC 9.4% vs 21.3% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
The Trade Desk operates a cloud-based platform that enables advertisers to programmatically buy and manage digital ad campaigns across channels like connected TV, display, and video. It generates revenue primarily from platform fees—typically a percentage of media spend—with nearly all income coming from its core self-service advertising platform. Its key advantage is its independent, transparent position in the ad tech ecosystem—unlike walled gardens—which attracts major agencies and brands seeking unbiased campaign optimization.
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
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
TTD leads in 2 of 6 categories (Financial Metrics, Valuation Metrics). SHOP leads in 2 (Profitability & Efficiency, Total Returns). 1 tied.
Financial Metrics (TTM)
SHOP is the larger business by revenue, generating $11.6B annually — 4.0x TTD's $2.9B. Profitability is closely matched — net margins range from 15.3% (TTD) to 10.7% (SHOP). On growth, SHOP holds the edge at +30.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TTDThe Trade Desk, I… | SHOPShopify Inc. |
|---|---|---|
| RevenueTrailing 12 months | $2.9B | $11.6B |
| EBITDAEarnings before interest/tax | $673M | $1.5B |
| Net IncomeAfter-tax profit | $443M | $1.2B |
| Free Cash FlowCash after capex | $787M | $2.0B |
| Gross MarginGross profit ÷ Revenue | +78.6% | +48.1% |
| Operating MarginEBIT ÷ Revenue | +20.3% | +12.7% |
| Net MarginNet income ÷ Revenue | +15.3% | +10.7% |
| FCF MarginFCF ÷ Revenue | +27.2% | +17.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +14.3% | +30.6% |
| EPS Growth (YoY)Latest quarter vs prior year | +11.1% | -42.0% |
Valuation Metrics
At 26.2x trailing earnings, TTD trades at a 80% valuation discount to SHOP's 128.4x P/E. Adjusting for growth (PEG ratio), TTD offers better value at 1.99x vs SHOP's 4.38x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | TTDThe Trade Desk, I… | SHOPShopify Inc. |
|---|---|---|
| Market CapShares × price | $11.5B | $157.4B |
| Enterprise ValueMkt cap + debt − cash | $11.3B | $156.1B |
| Trailing P/EPrice ÷ TTM EPS | 26.18x | 128.44x |
| Forward P/EPrice ÷ next-FY EPS est. | 21.13x | 65.90x |
| PEG RatioP/E ÷ EPS growth rate | 1.99x | 4.38x |
| EV / EBITDAEnterprise value multiple | 21.02x | 104.11x |
| Price / SalesMarket cap ÷ Revenue | 3.99x | 13.62x |
| Price / BookPrice ÷ Book value/share | 4.63x | 11.69x |
| Price / FCFMarket cap ÷ FCF | 14.51x | 78.44x |
Profitability & Efficiency
TTD delivers a 17.8% return on equity — every $100 of shareholder capital generates $18 in annual profit, vs $9 for SHOP. SHOP carries lower financial leverage with a 0.01x debt-to-equity ratio, signaling a more conservative balance sheet compared to TTD's 0.18x.
| Metric | TTDThe Trade Desk, I… | SHOPShopify Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +17.8% | +9.1% |
| ROA (TTM)Return on assets | +7.2% | +8.1% |
| ROICReturn on invested capital | +21.3% | +9.4% |
| ROCEReturn on capital employed | +19.2% | +11.0% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 6 |
| Debt / EquityFinancial leverage | 0.18x | 0.01x |
| Net DebtTotal debt minus cash | -$222M | -$1.4B |
| Cash & Equiv.Liquid assets | $658M | $1.5B |
| Total DebtShort + long-term debt | $436M | $188M |
| Interest CoverageEBIT ÷ Interest expense | 985.25x | — |
Total Returns (with DRIP)
A $10,000 investment in SHOP five years ago would be worth $9,216 today (with dividends reinvested), compared to $2,862 for TTD. Over the past 12 months, SHOP leads with a +7.8% total return vs TTD's -66.1%. The 3-year compound annual growth rate (CAGR) favors SHOP at 43.2% vs TTD's -24.8% — a key indicator of consistent wealth creation.
| Metric | TTDThe Trade Desk, I… | SHOPShopify Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -36.8% | -23.2% |
| 1-Year ReturnPast 12 months | -66.1% | +7.8% |
| 3-Year ReturnCumulative with dividends | -57.4% | +193.5% |
| 5-Year ReturnCumulative with dividends | -71.4% | -7.8% |
| 10-Year ReturnCumulative with dividends | +691.4% | +5294.6% |
| CAGR (3Y)Annualised 3-year return | -24.8% | +43.2% |
Risk & Volatility
TTD is the less volatile stock with a 1.67 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. SHOP currently trades 66.3% from its 52-week high vs TTD's 26.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | TTDThe Trade Desk, I… | SHOPShopify Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.67x | 2.23x |
| 52-Week HighHighest price in past year | $91.45 | $182.19 |
| 52-Week LowLowest price in past year | $21.08 | $69.84 |
| % of 52W HighCurrent price vs 52-week peak | +26.0% | +66.3% |
| RSI (14)Momentum oscillator 0–100 | 25.4 | 48.7 |
| Avg Volume (50D)Average daily shares traded | 10.7M | 10.0M |
Analyst Outlook
Wall Street rates TTD as "Buy" and SHOP as "Buy". Consensus price targets imply 95.8% upside for TTD (target: $47) vs 36.8% for SHOP (target: $165).
| Metric | TTDThe Trade Desk, I… | SHOPShopify Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $46.65 | $165.16 |
| # AnalystsCovering analysts | 46 | 63 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +12.0% | 0.0% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| The Trade Desk, Inc. (TTD) | 100 | 103.26 | +3.3% |
| Shopify Inc. (SHOP) | 100 | 270.68 | +170.7% |
Shopify Inc. (SHOP) returned -8% over 5 years vs The Trade Desk, Inc. (TTD)'s -71%.
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| The Trade Desk, Inc. (TTD) | $203M | $2.9B | +1327.3% |
| Shopify Inc. (SHOP) | $389M | $11.6B | +2868.2% |
The Trade Desk, Inc.'s revenue grew from $203M (2016) to $2.9B (2025) — a 34.4% CAGR. 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 |
|---|---|---|---|
| The Trade Desk, Inc. (TTD) | 10.1% | 15.3% | +51.6% |
| Shopify Inc. (SHOP) | -9.1% | 10.7% | +217.3% |
The Trade Desk, Inc.'s net margin went from 10% (2016) to 15% (2025). Shopify Inc.'s net margin went from -9% (2016) to 11% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| The Trade Desk, Inc. (TTD) | 38.1 | 41.7 | +9.4% |
| Shopify Inc. (SHOP) | 435.4 | 171.2 | -60.7% |
The Trade Desk, Inc. has traded in a 38x–408x P/E range over 9 years; current trailing P/E is ~26x. 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 |
|---|---|---|---|
| The Trade Desk, Inc. (TTD) | 0.05 | 0.91 | +1705.6% |
| Shopify Inc. (SHOP) | -0.04 | 0.94 | +2332.8% |
The Trade Desk, Inc.'s EPS grew from $0.05 (2016) to $0.91 (2025) — a 38% CAGR. Shopify Inc.'s EPS grew from $-0.04 (2016) to $0.94 (2025).
Chart 6Free Cash Flow — 5 Years
The Trade Desk, Inc. generated $796M FCF in 2025 (+150% vs 2021). Shopify Inc. generated $2B FCF in 2025 (+314% vs 2021).
TTD vs SHOP: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is TTD or SHOP a better buy right now?
The Trade Desk, Inc. (TTD) offers the better valuation at 26.2x trailing P/E (21.1x forward), making it the more compelling value choice. Analysts rate The Trade Desk, Inc. (TTD) a "Buy" — based on 46 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 — TTD or SHOP?
On trailing P/E, The Trade Desk, Inc. (TTD) is the cheapest at 26.2x versus Shopify Inc. at 128.4x. On forward P/E, The Trade Desk, Inc. is actually cheaper at 21.1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: The Trade Desk, Inc. wins at 1.60x versus Shopify Inc.'s 2.25x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — TTD or SHOP?
Over the past 5 years, Shopify Inc. (SHOP) delivered a total return of -7.8%, compared to -71.4% for The Trade Desk, Inc. (TTD). 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 TTD's +691.4%. 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 — TTD or SHOP?
By beta (market sensitivity over 5 years), The Trade Desk, Inc. (TTD) is the lower-risk stock at 1.67β versus Shopify Inc.'s 2.23β — meaning SHOP is approximately 33% more volatile than TTD relative to the S&P 500. On balance sheet safety, Shopify Inc. (SHOP) carries a lower debt/equity ratio of 1% versus 18% for The Trade Desk, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — TTD or SHOP?
The Trade Desk, Inc. (TTD) is the more profitable company, earning 15.3% net margin versus 10.7% for Shopify Inc. — meaning it keeps 15.3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TTD leads at 20.3% versus 12.7% for SHOP. At the gross margin level — before operating expenses — TTD leads at 78.6%, 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.
06Is TTD or SHOP more undervalued right now?
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, The Trade Desk, Inc. (TTD) is the more undervalued stock at a PEG of 1.60x versus Shopify Inc.'s 2.25x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, The Trade Desk, Inc. (TTD) trades at 21.1x forward P/E versus 65.9x for Shopify Inc. — 44.8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TTD: 95.8% to $46.65.
07Which pays a better dividend — TTD 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.
08Is TTD or SHOP better for a retirement portfolio?
For long-horizon retirement investors, The Trade Desk, Inc. (TTD) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+691.4% 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 (TTD: +691.4%, 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.
09What are the main differences between TTD 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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