Shopify Inc. (SHOP) vs Snowflake Inc. (SNOW)

Shopify Inc. and Snowflake Inc. are both Software Application companies. Shopify Inc. is the larger, with a market value of $184.9B against $95.1B — 1.9× the size. Snowflake Inc. has negative trailing earnings, so its P/E is not meaningful; Shopify Inc. trades at 87.9×. Shopify Inc. grew revenue faster over the last twelve months: 32.5% against 32.0%. Shopify Inc. has the higher net margin (15.0% vs −20.1%) and the higher return on invested capital (16.1% vs −37.0%). Across the 20 metrics below, Shopify Inc. leads on 16 and Snowflake Inc. on 4.

Valuation

Metric SHOP SNOW Software Application median
P/E 87.94 n/m 25.90
P/S 13.09 17.41 3.04
P/B 14.55 44.01 2.60
Price to free cash flow 69.71 79.35 17.17
EV/EBITDA 86.71 n/m 15.48
EV/Sales 12.84 17.40 2.89
Earnings yield 1.14% (1.17%) 0.00%
Free cash flow yield 1.43% 1.26% 1.98%

Profitability

Metric SHOP SNOW Software Application median
Gross margin 47.49% 67.03% 66.89%
Operating margin 14.60% (22.76%) 0.00%
Net margin 15.01% (20.07%) 0.00%
Free cash flow margin 18.78% 21.94% 5.77%
Return on equity 16.83% (48.17%) 0.00%
Return on assets 14.32% (12.92%) 0.00%
Return on invested capital 16.12% (37.00%) 0.00%

Growth

Metric SHOP SNOW Software Application median
Revenue growth (TTM) 32.45% 32.04% 12.27%
EPS growth (last fiscal year) (39.35%) (2.33%) 32.11%
Revenue growth, 5-year CAGR 31.58% 51.23% 14.34%
Net income growth, 5-year CAGR 30.96% 0.00% 0.00%

Health

Metric SHOP SNOW Software Application median
Debt to equity 0.00 1.06 0.02
Current ratio 4.86 0.94 1.53
Net debt to EBITDA (3.85) 1.61 0.09

Dividend

Metric SHOP SNOW Software Application median
Dividend yield — — 1.10%
Payout ratio — — 0.28

Size

Metric SHOP SNOW Software Application median
Market cap 184.92b 95.09b 487.58m

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