Comprehensive Stock Comparison
Compare Shopify Inc. (SHOP) vs NVIDIA Corporation (NVDA) 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 | NVDA | 65.5% revenue growth vs SHOP's 30.1% |
| Value | NVDA | Lower P/E (21.9x vs 65.9x), PEG 0.23 vs 2.25 |
| Quality / Margins | NVDA | 55.6% net margin vs SHOP's 10.7% |
| Stability / Safety | NVDA | Beta 1.73 vs SHOP's 2.23 |
| Dividends | NVDA | 0.0% yield; 2-year raise streak; SHOP pays no meaningful dividend |
| Momentum (1Y) | NVDA | +41.9% vs SHOP's +7.8% |
| Efficiency (ROA) | NVDA | 58.1% ROA vs SHOP's 8.1%, ROIC 81.8% vs 9.4% |
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
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.
NVIDIA designs and sells graphics processing units (GPUs) and accelerated computing platforms that power artificial intelligence, gaming, and professional visualization applications. The company generates revenue primarily through its Data Center segment — which includes AI chips and systems — accounting for over 70% of sales, supplemented by its Gaming GPU business and professional visualization offerings. NVIDIA's competitive moat stems from its CUDA software ecosystem — which locks developers into its hardware architecture — and its years of architectural leadership in parallel processing for AI workloads.
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
NVDA leads in 4 of 6 categories — strongest in Financial Metrics and Valuation Metrics. 1 category is tied.
Financial Metrics (TTM)
NVDA is the larger business by revenue, generating $215.9B annually — 18.7x SHOP's $11.6B. NVDA is the more profitable business, keeping 55.6% of every revenue dollar as net income compared to SHOP's 10.7%. On growth, NVDA holds the edge at +73.2% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | SHOPShopify Inc. | NVDANVIDIA Corporation |
|---|---|---|
| RevenueTrailing 12 months | $11.6B | $215.9B |
| EBITDAEarnings before interest/tax | $1.5B | $133.2B |
| Net IncomeAfter-tax profit | $1.2B | $120.1B |
| Free Cash FlowCash after capex | $2.0B | $96.7B |
| Gross MarginGross profit ÷ Revenue | +48.1% | +71.1% |
| Operating MarginEBIT ÷ Revenue | +12.7% | +60.4% |
| Net MarginNet income ÷ Revenue | +10.7% | +55.6% |
| FCF MarginFCF ÷ Revenue | +17.4% | +44.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +30.6% | +73.2% |
| EPS Growth (YoY)Latest quarter vs prior year | -42.0% | +97.8% |
Valuation Metrics
At 36.2x trailing earnings, NVDA trades at a 72% valuation discount to SHOP's 128.4x P/E. Adjusting for growth (PEG ratio), NVDA offers better value at 0.38x vs SHOP's 4.38x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | SHOPShopify Inc. | NVDANVIDIA Corporation |
|---|---|---|
| Market CapShares × price | $157.4B | $4.31T |
| Enterprise ValueMkt cap + debt − cash | $156.1B | $4.31T |
| Trailing P/EPrice ÷ TTM EPS | 128.44x | 36.16x |
| Forward P/EPrice ÷ next-FY EPS est. | 65.90x | 21.88x |
| PEG RatioP/E ÷ EPS growth rate | 4.38x | 0.38x |
| EV / EBITDAEnterprise value multiple | 104.11x | 32.33x |
| Price / SalesMarket cap ÷ Revenue | 13.62x | 19.94x |
| Price / BookPrice ÷ Book value/share | 11.69x | 27.52x |
| Price / FCFMarket cap ÷ FCF | 78.44x | 44.54x |
Profitability & Efficiency
NVDA delivers a 76.3% return on equity — every $100 of shareholder capital generates $76 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 NVDA's 0.07x. On the Piotroski fundamental quality scale (0–9), SHOP scores 6/9 vs NVDA's 4/9, reflecting solid financial health.
| Metric | SHOPShopify Inc. | NVDANVIDIA Corporation |
|---|---|---|
| ROE (TTM)Return on equity | +9.1% | +76.3% |
| ROA (TTM)Return on assets | +8.1% | +58.1% |
| ROICReturn on invested capital | +9.4% | +81.8% |
| ROCEReturn on capital employed | +11.0% | +97.2% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 4 |
| Debt / EquityFinancial leverage | 0.01x | 0.07x |
| Net DebtTotal debt minus cash | -$1.4B | $807M |
| Cash & Equiv.Liquid assets | $1.5B | $10.6B |
| Total DebtShort + long-term debt | $188M | $11.4B |
| Interest CoverageEBIT ÷ Interest expense | — | 545.03x |
Total Returns (with DRIP)
A $10,000 investment in NVDA five years ago would be worth $128,116 today (with dividends reinvested), compared to $9,216 for SHOP. Over the past 12 months, NVDA leads with a +41.9% total return vs SHOP's +7.8%. The 3-year compound annual growth rate (CAGR) favors NVDA at 96.9% vs SHOP's 43.2% — a key indicator of consistent wealth creation.
| Metric | SHOPShopify Inc. | NVDANVIDIA Corporation |
|---|---|---|
| YTD ReturnYear-to-date | -23.2% | -6.2% |
| 1-Year ReturnPast 12 months | +7.8% | +41.9% |
| 3-Year ReturnCumulative with dividends | +193.5% | +663.5% |
| 5-Year ReturnCumulative with dividends | -7.8% | +1181.2% |
| 10-Year ReturnCumulative with dividends | +5294.6% | +22525.7% |
| CAGR (3Y)Annualised 3-year return | +43.2% | +96.9% |
Risk & Volatility
NVDA is the less volatile stock with a 1.73 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. NVDA currently trades 83.5% from its 52-week high vs SHOP's 66.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | SHOPShopify Inc. | NVDANVIDIA Corporation |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.23x | 1.73x |
| 52-Week HighHighest price in past year | $182.19 | $212.19 |
| 52-Week LowLowest price in past year | $69.84 | $86.62 |
| % of 52W HighCurrent price vs 52-week peak | +66.3% | +83.5% |
| RSI (14)Momentum oscillator 0–100 | 48.7 | 47.4 |
| Avg Volume (50D)Average daily shares traded | 10.0M | 136.2M |
Analyst Outlook
Wall Street rates SHOP as "Buy" and NVDA as "Buy". Consensus price targets imply 52.9% upside for NVDA (target: $271) vs 36.8% for SHOP (target: $165).
| Metric | SHOPShopify Inc. | NVDANVIDIA Corporation |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $165.16 | $271.00 |
| # AnalystsCovering analysts | 63 | 79 |
| Dividend YieldAnnual dividend ÷ price | — | +0.0% |
| Dividend StreakConsecutive years of raises | — | 2 |
| Dividend / ShareAnnual DPS | — | $0.04 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.9% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Shopify Inc. (SHOP) | 100 | 270.68 | +170.7% |
| NVIDIA Corporation (NVDA) | 100 | 2,686.11 | +2586.1% |
NVIDIA Corporation (NVDA) returned +1.2K% over 5 years vs Shopify Inc. (SHOP)'s -8%. A $10,000 investment in NVDA 5 years ago would be worth $128,116 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Shopify Inc. (SHOP) | $673M | $11.6B | +1616.3% |
| NVIDIA Corporation (NVDA) | $6.9B | $215.9B | +3025.0% |
NVIDIA Corporation's revenue grew from $6.9B (2017) to $215.9B (2026) — a 46.6% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Shopify Inc. (SHOP) | -5.9% | 10.7% | +279.3% |
| NVIDIA Corporation (NVDA) | 24.1% | 55.6% | +130.6% |
NVIDIA Corporation's net margin went from 24% (2017) to 56% (2026).
Chart 4P/E Ratio History — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Shopify Inc. (SHOP) | 435.4 | 171.2 | -60.7% |
| NVIDIA Corporation (NVDA) | 75.6 | 36.2 | -52.1% |
Shopify Inc. has traded in a 61x–435x P/E range over 4 years; current trailing P/E is ~128x. NVIDIA Corporation has traded in a 28x–291x P/E range over 10 years; current trailing P/E is ~36x.
Chart 5EPS Growth — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Shopify Inc. (SHOP) | -0.04 | 0.94 | +2348.8% |
| NVIDIA Corporation (NVDA) | 0.06 | 4.9 | +7556.3% |
NVIDIA Corporation's EPS grew from $0.06 (2017) to $4.90 (2026) — a 62% CAGR.
Chart 6Free Cash Flow — 5 Years
Shopify Inc. generated $2B FCF in 2025 (+314% vs 2021). NVIDIA Corporation generated $97B FCF in 2026 (+1960% vs 2021).
SHOP vs NVDA: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is SHOP or NVDA a better buy right now?
NVIDIA Corporation (NVDA) offers the better valuation at 36.2x trailing P/E (21.9x 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 NVDA?
On trailing P/E, NVIDIA Corporation (NVDA) is the cheapest at 36.2x versus Shopify Inc. at 128.4x. On forward P/E, NVIDIA Corporation is actually cheaper at 21.9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: NVIDIA Corporation wins at 0.23x versus Shopify Inc.'s 2.25x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — SHOP or NVDA?
Over the past 5 years, NVIDIA Corporation (NVDA) delivered a total return of +1181%, compared to -7.8% for Shopify Inc. (SHOP). A $10,000 investment in NVDA five years ago would be worth approximately $128K today (assuming dividends reinvested). Over 10 years, the gap is even starker: NVDA returned +225.3% versus SHOP's +52.9%. 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 NVDA?
By beta (market sensitivity over 5 years), NVIDIA Corporation (NVDA) is the lower-risk stock at 1.73β versus Shopify Inc.'s 2.23β — meaning SHOP is approximately 29% more volatile than NVDA relative to the S&P 500. On balance sheet safety, Shopify Inc. (SHOP) carries a lower debt/equity ratio of 1% versus 7% for NVIDIA Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — SHOP or NVDA?
NVIDIA Corporation (NVDA) is the more profitable company, earning 55.6% net margin versus 10.7% for Shopify Inc. — meaning it keeps 55.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NVDA leads at 60.4% versus 12.7% for SHOP. At the gross margin level — before operating expenses — NVDA leads at 71.1%, 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.
06Is SHOP or NVDA 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, NVIDIA Corporation (NVDA) is the more undervalued stock at a PEG of 0.23x versus Shopify Inc.'s 2.25x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, NVIDIA Corporation (NVDA) trades at 21.9x forward P/E versus 65.9x for Shopify Inc. — 44.0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NVDA: 52.9% to $271.00.
07Which pays a better dividend — SHOP or NVDA?
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 SHOP or NVDA better for a retirement portfolio?
For long-horizon retirement investors, NVIDIA Corporation (NVDA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+225.3% 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 (NVDA: +225.3%, 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 SHOP and NVDA?
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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