Shopify Inc. vs Microsoft Corporation
SHOP and MSFT are evenly matched across key metrics.
🏆 Tale of the Tape
Green = winner in each category. Higher is better except P/E (lower = cheaper).
Rolling Correlation
Moderately correlated — some diversification benefit from holding both.
Fundamentals
| Metric | SHOP | MSFT |
|---|---|---|
| Market Cap | $154.0B | $3.34T |
| P/E Ratio | 116.4x | 26.8x |
| Forward P/E | 50.9x | 23.3x |
| P/B | 12.35x | 8.07x |
| Dividend Yield | — | 0.81% |
| Beta | 2.64 | 1.09 |
Quantitative Metrics
| Metric | SHOP | MSFT |
|---|---|---|
| DCF Fair Value | $55.57 | $120.75 |
| DCF Upside | -51.7% | -68.6% |
| Piotroski F | 5/9 | 5/9 |
| Altman Z | 52.38 | 7.76 |
| Beneish M | -2.22 | -2.57 |
| FCF Yield | 1.41% | 2.59% |
| Net Debt/EBITDA | — | 0.1x |
| ROIC | 10.8% | 20.8% |
| WACC | — | 11.5% |
| ROIC – WACC | — | 9.3pp |
| Gross Margin | 48.1% | 68.8% |
| Net Margin | 10.7% | 36.1% |
| Rev Growth YoY | 30.1% | 14.9% |
| Sharpe (1Y) | 0.60 | -0.11 |
| Max Drawdown 3Y | -42.4% | -33.9% |
| FCF Payout Ratio | — | 34% |
SHOP Price
MSFT Price
ETF Exposure
SHOP found in:
MSFT found in:
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Quant metrics computed from financial statements and 1,200+ trading days. Correlation is Pearson coefficient on daily log returns. Not investment advice.
SHOP vs MSFT: Head-to-Head Analysis
Shopify Inc. (SHOP) and Microsoft Corporation (MSFT) represent two companies in the Technology sector. Our quantitative Tale of the Tape shows these companies are evenly matched across profitability, valuation, and risk metrics.
In terms of capital efficiency, SHOP generates a return on invested capital (ROIC) of 10.8% compared to MSFT's 20.8%. This suggests MSFT is more effective at deploying capital to generate shareholder returns.
The 252-day rolling correlation between SHOP and MSFT is 0.355, indicating moderate co-movement, with some diversification value from holding both in a portfolio context.
SHOP appears in 13 ETFs tracked by SecuritiesDB, while MSFT appears in 46 ETFs. Investors holding broad-market ETFs may already have indirect exposure to both stocks.
Frequently Asked Questions
Which stock is the better investment, SHOP or MSFT?
Our quantitative analysis compares SHOP and MSFT across nine fundamental dimensions. SHOP and MSFT are evenly matched across key metrics. However, stock selection depends on your individual risk tolerance, time horizon, and portfolio context. These metrics are computed from SEC filings and market data — they are not investment recommendations.
Are SHOP and MSFT correlated?
The 252-day correlation between SHOP and MSFT is 0.355. They show moderate correlation — partially diversifying.
How is the Tale of the Tape scored?
The Tale of the Tape compares both stocks across nine categories: profitability (net margin), valuation (P/E), efficiency (ROIC), health (Piotroski F-Score), safety (Altman Z-Score), growth (revenue YoY), risk (Sharpe ratio), leverage (debt-to-equity), and cash generation (FCF yield). The stock that wins more categories takes the overall score. Lower P/E and lower debt-to-equity count as wins.