SPSC vs GDDY vs HUBS vs SHOP

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 14. 4x trailing P/E (12. 9x forward), making it the more compelling value choice. Analysts rate GoDaddy Inc. (GDDY) a "Buy" — based on 38 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.

On trailing P/E, GoDaddy Inc.

(GDDY) is the cheapest at 14. 4x versus HubSpot, Inc. at 284. 1x. On forward P/E, SPS Commerce, Inc. is actually cheaper at 12. 7x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: SPS Commerce, Inc. wins at 0. 89x versus Shopify Inc. 's 2. 08x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, GoDaddy Inc.

(GDDY) delivered a total return of +10. 7%, compared to -52. 1% for HubSpot, Inc. (HUBS). Over 10 years, the gap is even starker: SHOP returned +41. 2% versus SPSC's +119. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

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, SPS Commerce, Inc. (SPSC) carries a lower debt/equity ratio of 1% versus 18% for GoDaddy Inc. — giving it more financial flexibility in a downturn.

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: HubSpot, Inc. grew EPS 863. 0% 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.

GoDaddy Inc.

(GDDY) is the more profitable company, earning 17. 7% net margin versus 1. 5% for HubSpot, 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 0. 4% for HUBS. At the gross margin level — before operating expenses — HUBS leads at 83. 8%, 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.

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, SPS Commerce, Inc. (SPSC) is the more undervalued stock at a PEG of 0. 89x versus Shopify Inc. 's 2. 08x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, SPS Commerce, Inc. (SPSC) trades at 12. 7x forward P/E versus 60. 9x for Shopify Inc. — 48. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HUBS: 47. 7% to $360. 89.

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.

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), +197. 1% 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: +197. 1%, SHOP: +41. 2%), 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.

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: SPSC is a small-cap high-growth stock; GDDY is a mid-cap deep-value stock; HUBS is a mid-cap high-growth stock; SHOP is a mid-cap high-growth 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.