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SHOP vs TXN

SHOP
Shopify Inc.
NEUTRAL
Price
$131.15
Market Cap
$170.62B
Sector
Technology
AI Confidence
85%
TXN
Texas Instruments Incorporated
NEUTRAL
Price
$194.14
Market Cap
$176.76B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
SHOP
139.52
TXN
35.69
Forward P/E
SHOP
57.14
TXN
24.55
P/B Ratio
SHOP
12.69
TXN
10.82
P/S Ratio
SHOP
14.77
TXN
10.0
EV/EBITDA
SHOP
85.73
TXN
23.13

Profitability

Gross Margin
SHOP
48.07%
TXN
57.02%
Operating Margin
SHOP
20.29%
TXN
34.03%
Profit Margin
SHOP
10.65%
TXN
28.28%
ROE
SHOP
9.84%
TXN
30.15%
ROA
SHOP
8.15%
TXN
10.93%

Growth

Revenue Growth
SHOP
30.6%
TXN
10.4%
Earnings Growth
SHOP
-42.3%
TXN
-3.2%

Financial Health

Debt/Equity
SHOP
0.01
TXN
0.91
Current Ratio
SHOP
5.96
TXN
4.35
Quick Ratio
SHOP
4.58
TXN
2.71

Dividends

Dividend Yield
SHOP
--
TXN
3.05%
Payout Ratio
SHOP
0.0%
TXN
100.92%

AI Verdict

SHOP NEUTRAL

Shopify exhibits a stable financial health profile with a Piotroski F-Score of 4/9 and a pristine balance sheet (Debt/Equity 0.01), yet it suffers from an extreme valuation disconnect. The current price of $131.15 trades at a massive premium to its Graham Number ($14.78) and Intrinsic Value ($6.58), reflecting aggressive growth expectations. While top-line revenue growth remains strong at 30.6%, the recent -42.3% contraction in earnings growth is a significant concern. The stock is a classic high-growth play where fundamental value is secondary to market sentiment and scalability.

Strengths
Exceptional liquidity with a Current Ratio of 5.96 and Quick Ratio of 4.58
Virtually debt-free balance sheet (Debt/Equity 0.01)
Strong top-line momentum with 30.6% YoY revenue growth
Risks
Extreme valuation risk with a P/E ratio of 139.52
Severe earnings contraction (-42.3% YoY) despite revenue growth
Massive gap between current market price and deterministic fair value models
TXN NEUTRAL

TXN shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (28.3% margin)
Strong ROE of 30.1%
Risks
High valuation with P/E of 35.7
Premium vs Graham Number ($46.86)

Compare Another Pair

SHOP vs TXN: Head-to-Head Comparison

This page compares Shopify Inc. (SHOP) and Texas Instruments Incorporated (TXN) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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