Comprehensive Stock Comparison
Compare Shopify Inc. (SHOP) vs Santech Holdings Limited (STEC) 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 STEC's 7.7% |
| Value | STEC | Lower P/E (1.5x vs 65.9x), PEG 0.07 vs 2.25 |
| Quality / Margins | SHOP | 10.7% net margin vs STEC's 5.7% |
| Stability / Safety | STEC | Beta 0.37 vs SHOP's 2.23 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | STEC | +6.8% vs SHOP's +7.8% |
| Efficiency (ROA) | SHOP | 8.1% ROA vs STEC's 5.8%, ROIC 9.4% vs 28.6% |
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.
Santech Holdings is a Chinese consumer technology company exploring emerging digital opportunities. It generates revenue through new retail platforms, social e-commerce services, and metaverse-related ventures — though specific segment contributions are not clearly disclosed. The company's competitive advantage appears to be its early positioning in China's evolving digital landscape and its ability to pivot between emerging technology trends.
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
STEC leads in 3 of 6 categories (Valuation Metrics, Total Returns). SHOP leads in 1 (Financial Metrics). 1 tied.
Financial Metrics (TTM)
SHOP is the larger business by revenue, generating $11.6B annually — 5.5x STEC's $2.1B. Profitability is closely matched — net margins range from 10.7% (SHOP) to 5.7% (STEC).
| Metric | SHOPShopify Inc. | STECSantech Holdings … |
|---|---|---|
| RevenueTrailing 12 months | $11.6B | $2.1B |
| EBITDAEarnings before interest/tax | $1.5B | — |
| Net IncomeAfter-tax profit | $1.2B | — |
| Free Cash FlowCash after capex | $2.0B | — |
| Gross MarginGross profit ÷ Revenue | +48.1% | +41.2% |
| Operating MarginEBIT ÷ Revenue | +12.7% | +9.4% |
| Net MarginNet income ÷ Revenue | +10.7% | +5.7% |
| FCF MarginFCF ÷ Revenue | +17.4% | +24.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +30.6% | — |
| EPS Growth (YoY)Latest quarter vs prior year | -42.0% | — |
Valuation Metrics
At 1.5x trailing earnings, STEC trades at a 99% valuation discount to SHOP's 128.4x P/E. Adjusting for growth (PEG ratio), STEC offers better value at 0.07x vs SHOP's 4.38x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | SHOPShopify Inc. | STECSantech Holdings … |
|---|---|---|
| Market CapShares × price | $157.4B | $1.1B |
| Enterprise ValueMkt cap + debt − cash | $156.1B | $374M |
| Trailing P/EPrice ÷ TTM EPS | 128.44x | 1.52x |
| Forward P/EPrice ÷ next-FY EPS est. | 65.90x | — |
| PEG RatioP/E ÷ EPS growth rate | 4.38x | 0.07x |
| EV / EBITDAEnterprise value multiple | 104.11x | 1.48x |
| Price / SalesMarket cap ÷ Revenue | 13.62x | 0.51x |
| Price / BookPrice ÷ Book value/share | 11.69x | 0.15x |
| Price / FCFMarket cap ÷ FCF | 78.44x | 2.10x |
Profitability & Efficiency
STEC delivers a 10.7% return on equity — every $100 of shareholder capital generates $11 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 STEC's 0.15x. On the Piotroski fundamental quality scale (0–9), SHOP scores 6/9 vs STEC's 4/9, reflecting solid financial health.
| Metric | SHOPShopify Inc. | STECSantech Holdings … |
|---|---|---|
| ROE (TTM)Return on equity | +9.1% | +10.7% |
| ROA (TTM)Return on assets | +8.1% | +5.8% |
| ROICReturn on invested capital | +9.4% | +28.6% |
| ROCEReturn on capital employed | +11.0% | +16.7% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 4 |
| Debt / EquityFinancial leverage | 0.01x | 0.15x |
| Net DebtTotal debt minus cash | -$1.4B | -$685M |
| Cash & Equiv.Liquid assets | $1.5B | $869M |
| Total DebtShort + long-term debt | $188M | $184M |
| Interest CoverageEBIT ÷ Interest expense | — | — |
Total Returns (with DRIP)
A $10,000 investment in STEC five years ago would be worth $341,463 today (with dividends reinvested), compared to $9,216 for SHOP. Over the past 12 months, STEC leads with a +682.6% total return vs SHOP's +7.8%. The 3-year compound annual growth rate (CAGR) favors STEC at 2.2% vs SHOP's 43.2% — a key indicator of consistent wealth creation.
| Metric | SHOPShopify Inc. | STECSantech Holdings … |
|---|---|---|
| YTD ReturnYear-to-date | -23.2% | +800.0% |
| 1-Year ReturnPast 12 months | +7.8% | +682.6% |
| 3-Year ReturnCumulative with dividends | +193.5% | +3314.6% |
| 5-Year ReturnCumulative with dividends | -7.8% | +3314.6% |
| 10-Year ReturnCumulative with dividends | +5294.6% | +3314.6% |
| CAGR (3Y)Annualised 3-year return | +43.2% | +2.2% |
Risk & Volatility
STEC is the less volatile stock with a 0.37 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. STEC currently trades 84.0% 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. | STECSantech Holdings … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.23x | 0.37x |
| 52-Week HighHighest price in past year | $182.19 | $15.00 |
| 52-Week LowLowest price in past year | $69.84 | $0.44 |
| % of 52W HighCurrent price vs 52-week peak | +66.3% | +84.0% |
| RSI (14)Momentum oscillator 0–100 | 48.7 | 60.8 |
| Avg Volume (50D)Average daily shares traded | 10.0M | 4.4M |
Analyst Outlook
| Metric | SHOPShopify Inc. | STECSantech Holdings … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | — |
| Price TargetConsensus 12-month target | $165.16 | — |
| # AnalystsCovering analysts | 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 | Aug 24 | Feb 26 | Change |
|---|---|---|---|
| Shopify Inc. (SHOP) | 100 | 227.26 | +127.3% |
| Santech Holdings Li… (STEC) | 79.49 | 379.4 | +377.3% |
Santech Holdings Li… (STEC) returned +3.3K% over 5 years vs Shopify Inc. (SHOP)'s -8%. A $10,000 investment in STEC 5 years ago would be worth $341,463 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Shopify Inc. (SHOP) | $389M | $11.6B | +2868.2% |
| Santech Holdings Li… (STEC) | $1.2B | $2.1B | +81.7% |
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 |
|---|---|---|---|
| Shopify Inc. (SHOP) | -9.1% | 10.7% | +217.3% |
| Santech Holdings Li… (STEC) | 3.7% | 5.7% | +57.3% |
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 |
|---|---|---|---|
| Shopify Inc. (SHOP) | -0.04 | 0.94 | +2332.8% |
| Santech Holdings Li… (STEC) | 3 | 8.3 | +176.7% |
Shopify Inc.'s EPS grew from $-0.04 (2016) to $0.94 (2025).
Chart 6Free Cash Flow — 5 Years
Shopify Inc. generated $2B FCF in 2025 (+314% vs 2021). Santech Holdings Limited generated $504M FCF in 2022 (+9590% vs 2021).
SHOP vs STEC: Frequently Asked Questions
8 questions · data-driven answers · updated daily
01Is SHOP or STEC a better buy right now?
Santech Holdings Limited (STEC) offers the better valuation at 1.5x trailing P/E, 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 STEC?
On trailing P/E, Santech Holdings Limited (STEC) is the cheapest at 1.5x versus Shopify Inc. at 128.4x.
03Which is the better long-term investment — SHOP or STEC?
Over the past 5 years, Santech Holdings Limited (STEC) delivered a total return of +33.1%, compared to -7.8% for Shopify Inc. (SHOP). A $10,000 investment in STEC five years ago would be worth approximately $13K today (assuming dividends reinvested). Over 10 years, the gap is even starker: SHOP returned +52.9% versus STEC's +33.1%. 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 STEC?
By beta (market sensitivity over 5 years), Santech Holdings Limited (STEC) is the lower-risk stock at 0.37β versus Shopify Inc.'s 2.23β — meaning SHOP is approximately 504% more volatile than STEC relative to the S&P 500. On balance sheet safety, Shopify Inc. (SHOP) carries a lower debt/equity ratio of 1% versus 15% for Santech Holdings Limited — giving it more financial flexibility in a downturn.
05Which has better profit margins — SHOP or STEC?
Shopify Inc. (SHOP) is the more profitable company, earning 10.7% net margin versus 5.7% for Santech 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 9.4% for STEC. 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.
06Which pays a better dividend — SHOP or STEC?
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 SHOP or STEC better for a retirement portfolio?
For long-horizon retirement investors, Santech Holdings Limited (STEC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.37)). 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 (STEC: +33.1%, 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 SHOP and STEC?
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 quality compounder stock; STEC is a small-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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