SMCI Holdings, Inc. (SMCI)vs
SHOP Holdings, Inc. (SHOP)
Factual comparison for information only — not investment advice. Capital is at risk.
Quick verdict
SMCI Holdings, Inc. (SMCI) and SHOP Holdings, Inc. (SHOP) appeal to different investors. On our six-factor framework, SMCI scores 2 and SHOP scores 4. SHOP looks cheaper on the multiples that matter, while SHOP grows faster and SHOP earns higher returns on capital. Overall, SHOP edges this comparison, but the right pick depends on whether you prioritise value, growth, income or balance-sheet safety.
2-year relative performance
At-a-glance comparison
| Metric | SMCI | SHOP |
|---|---|---|
| Price | $488.99 | $47.75 |
| Market cap | $2.79T | $1.89T |
| Forward P/E | — | 16.8× |
| EV / EBITDA | 15.5× | 10.2× |
| Price / sales | 19.6× | 3.3× |
| FCF yield | 0.6% | 2.0% |
| Rev. growth (3y) | -4.3% | 4.0% |
| EPS growth (3y) | -5.6% | 3.5% |
| Operating margin | -13.0% | 15.5% |
| ROIC | -5.1% | 8.3% |
| Net debt / EBITDA | -0.86× | 0.69× |
| Dividend yield | 3.2% | 1.4% |
| 1-year return | -1.4% | 42.9% |
| Beta | 1.65 | 0.64 |
Business model and revenue mix
SMCI Holdings, Inc. operates in Drug Manufacturers (Healthcare), while SHOP Holdings, Inc. sits in Beverages (Consumer Defensive). The two operate in different sectors, so cyclicality and end-market exposure differ — factor that into any portfolio overlap. SMCI carries a beta of 1.65 versus 0.64 for SHOP, meaning SMCI has historically been the more volatile of the two.
Valuation
On valuation, SHOP is the cheaper stock. SMCI trades on a forward P/E of n/a and EV/EBITDA of 15.52, against 16.83 and 10.2 for SHOP. Price-to-sales is 19.57 vs 3.26, and free-cash-flow yield is 0.6% vs 2.0%. A higher multiple is only justified if the company can sustain faster growth or wider margins, which is exactly what the next sections test.
Growth profile
SHOP is the faster grower. SMCI has compounded revenue at -4.3% over three years with EPS growth of -5.6%, while SHOP has delivered 4.0% revenue and 3.5% EPS growth. Growth like this is the single biggest driver of long-term returns, but it also tends to come with a richer valuation, so it must be weighed against the multiples above.
Profitability and quality
On profitability and quality, SHOP is stronger. SMCI posts a -13.0% operating margin, -18.3% return on equity and -5.1% return on invested capital. SHOP posts 15.5%, 47.7% and 8.3% respectively. Return on invested capital above roughly 15% is a hallmark of a durable competitive advantage, so this metric deserves particular attention.
Balance-sheet risk
SMCI has the safer balance sheet. SMCI carries net-debt/EBITDA of -0.86x with a current ratio of 2.88, versus 0.69x and 3.24 for SHOP. Lower leverage gives a company more room to invest through a downturn and reduces the risk of dilution or distress.
Price performance and shareholder returns
Over the past year SMCI returned -1.4% against 42.9% for SHOP; on a three-year annualised basis it is 0.8% vs 16.6%. SMCI yields 3.2% and SHOP yields 1.4%. Past performance never guarantees future results, but the multi-year track record shows how the market has rewarded each business so far.
Which stock fits which investor
For value-oriented investors, SHOP is the better fit on today's multiples. Growth investors will likely prefer SHOP, which is expanding faster. Income investors should lean toward SMCI for its higher shareholder yield, while investors who prize quality-at-a-reasonable-price will favour SHOP for its superior returns on capital. This is a comparison of facts, not a recommendation — your time horizon, risk tolerance and existing holdings should drive the final decision.
- Value: SHOP
- Growth: SHOP
- Income: SMCI
- Quality: SHOP
Best brokers to buy SHOP
Partner offers · we may earn a commission · capital at riskXM
- Fees
- From $0
- Min deposit
- $5
- US & EU stocks
- No deposit bonus
- MT4 / MT5
- MENA regulated
Exness
- Fees
- From $0
- Min deposit
- $10
- Instant withdrawals
- Global stocks
- High leverage
- Fast execution
Reader reviews
No reviews yet — be the first to rate this comparison.
Frequently asked questions
- Is SMCI or SHOP the better buy right now?
- Neither is universally "better." SMCI scores 2 and SHOP scores 4 on our six-factor framework. SHOP is cheaper, SHOP grows faster, and SHOP is higher quality — so the right pick depends on your objective.
- Which stock is cheaper, SMCI or SHOP?
- SHOP is the cheaper stock across forward P/E (n/a vs 16.83), EV/EBITDA (15.52 vs 10.2) and price-to-sales (19.57 vs 3.26).
- Which has grown faster, SMCI or SHOP?
- SHOP has the stronger growth profile, with three-year revenue CAGR of -4.3% for SMCI versus 4.0% for SHOP.
- Which stock pays a bigger dividend?
- SMCI yields 3.2% and SHOP yields 1.4%, so SMCI is the stronger income choice.
Related comparisons
Methodology and data sources
Each comparison runs both companies through a transparent six-factor framework — valuation, growth, profitability/quality, balance-sheet strength, income and momentum. Factor winners are decided by fixed rules on the metrics shown above, not opinion. Figures are sourced from TickerVerdict sample data and refreshed on a schedule; the “last updated” date reflects the most recent data pull. TickerVerdict provides factual data comparisons for informational purposes only. Nothing here is investment advice or a recommendation to buy or sell any security. Figures may be delayed; verify with your broker before investing. Capital is at risk.