SHOP vs. ZM: Shopify vs. Zoom Communications Stock Comparison
How do Shopify (SHOP) and Zoom Communications (ZM) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Shopify (SHOP) and Zoom Communications (ZM) both fall under the Software & Services industry group, but SHOP is classified in IT Services while ZM is classified in Software.
| Profile Item | SHOP | ZM |
|---|---|---|
| Name | Shopify Inc. | Zoom Communications, Inc. Class A Common Stock |
| Country/Region | Canada | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | IT Services | Software |
| GICS Sub-Industry | Internet Services & Infrastructure | Application Software |
| Market Capitalization | 191.58 billion USD | 26.23 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | May 20, 2015 | April 18, 2019 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | SHOP | ZM |
|---|---|---|
| Total Return (1Y) | -0.87% | 12.58% |
| Total Return (3Y, Annualized) | 35.77% | 14.89% |
| Total Return (5Y, Annualized) | -0.57% | -18.67% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
Shopify (SHOP) carries a highly aggressive beta of 2.65, indicating much higher sensitivity to broad-market moves, whereas Zoom Communications (ZM) is closer to market-like at 0.99 — a noticeable difference in market-sensitivity profile.
| Metric | SHOP | ZM |
|---|---|---|
| Volatility (1Y, Annualized) | 59.71% | 45.03% |
| Beta (5Y) | 2.65 | 0.99 |
| Max Drawdown (5Y) | -84.82% | -79.08% |
| Avg. Volume (3M) | 8.79M | 2.88M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | SHOP | ZM |
|---|---|---|
| Sharpe Ratio (1Y) | -0.09 | 0.18 |
| Sortino Ratio (1Y) | -0.12 | 0.28 |
Profitability
ROE (TTM)
Zoom Communications (ZM) at 32.14% sits in the top ROE quartile, while Shopify (SHOP) at 16.83% is closer to the peer norm — stronger capital efficiency for ZM.
SHOP
Software & Services industry group
16.83%
- Max
- 53.85%
- Q3
- 17.90%
- SHOP
- 16.83%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
ZM
Software & Services industry group
32.14%
- Max
- 53.85%
- ZM
- 32.14%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
Net Margin (TTM)
Zoom Communications (ZM) at 65.19% converts revenue to bottom-line profit above its industry’s benchmark range, while Shopify (SHOP) at 15.01% keeps roughly the typical share for its industry.
SHOP
Software & Services industry group
15.01%
- Max
- 41.17%
- Q3
- 15.28%
- SHOP
- 15.01%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
ZM
Software & Services industry group
65.19%
- ZM
- 65.19%
- Max
- 41.17%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
Both Shopify (SHOP) at 18.39% and Zoom Communications (ZM) at 24.61% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.
SHOP
Software & Services industry group
18.39%
- Max
- 46.89%
- SHOP
- 18.39%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
ZM
Software & Services industry group
24.61%
- Max
- 46.89%
- ZM
- 24.61%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | SHOP | ZM |
|---|---|---|
| ROE (TTM) | 16.83% | 32.14% |
| ROA (TTM) | 10.77% | 6.11% |
| Net Margin (TTM) | 15.01% | 65.19% |
| Operating Margin (TTM) | 18.39% | 24.61% |
| Gross Margin (TTM) | 47.49% | 77.66% |
Growth
Revenue Growth
Shopify (SHOP) at 30.14% sits in the top revenue growth quartile, while Zoom Communications (ZM) at 4.36% is in the bottom quartile, showing a clear gap in revenue momentum.
EPS Growth
Zoom Communications (ZM) at 92.52% sits in the top EPS growth quartile, while Shopify (SHOP) at -39.47% is closer to the peer norm — faster per-share earnings growth for ZM.
Growth Metrics
| Metric | SHOP | ZM |
|---|---|---|
| Revenue Growth (YoY) | 30.14% | 4.36% |
| Revenue Growth (3Y CAGR) | 27.31% | 3.49% |
| EPS Growth (YoY) | -39.47% | 92.52% |
| EPS Growth (3Y CAGR) | -- | 162.93% |
Financial Strength
Current Ratio (MRQ)
Both Shopify (SHOP) at 4.86 and Zoom Communications (ZM) at 3.83 post current ratio above their industries’ typical mid-ranges — short-term liquidity appears comfortable, though unusually high readings can point to idle current assets.
SHOP
Software & Services industry group
4.86
- Max
- 5.11
- SHOP
- 4.86
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- Min
- 0.03
ZM
Software & Services industry group
3.83
- Max
- 5.11
- ZM
- 3.83
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- Min
- 0.03
Debt / Equity (MRQ)
Both Shopify (SHOP) at 0.01 and Zoom Communications (ZM) at 0.01 keep leverage in the lower quartile of their industries, with less balance-sheet debt relative to equity than most peers.
SHOP
Software & Services industry group
0.01
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- Q1
- 0.07
- SHOP
- 0.01
- Min
- 0.00
ZM
Software & Services industry group
0.01
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- Q1
- 0.07
- ZM
- 0.01
- Min
- 0.00
Financial Strength Metrics
| Metric | SHOP | ZM |
|---|---|---|
| Current Ratio (MRQ) | 4.86 | 3.83 |
| Debt / Equity (MRQ) | 0.01 | 0.01 |
| Net Debt / EBITDA | -1.75 | -5.39 |
Dividends
Dividend Yield (TTM)
Neither Shopify (SHOP) nor Zoom Communications (ZM) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
SHOP
Software & Services industry group
0.00%
- SHOP
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ZM
Software & Services industry group
0.00%
- ZM
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Neither Shopify (SHOP) nor Zoom Communications (ZM) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
SHOP
Software & Services industry group
0.00%
- SHOP
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ZM
Software & Services industry group
0.00%
- ZM
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | SHOP | ZM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Zoom Communications (ZM) at 8.34 sits in the cheaper P/E ratio quartile, while Shopify (SHOP) at 91.36 sits in the richer quartile — a clear split in what investors pay for each dollar of trailing earnings.
SHOP
Software & Services industry group
91.36
- Max
- 112.94
- SHOP
- 91.36
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
ZM
Software & Services industry group
8.34
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- ZM
- 8.34
- Min
- 6.69
P/S Ratio (TTM)
Zoom Communications (ZM) at 5.25 is priced about in line with its industry on P/S ratio, while Shopify (SHOP) at 13.52 sits in the pricier quartile — SHOP costs more per dollar of sales.
SHOP
Software & Services industry group
13.52
- Max
- 17.91
- SHOP
- 13.52
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
ZM
Software & Services industry group
5.25
- Max
- 17.91
- Q3
- 8.78
- ZM
- 5.25
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
Zoom Communications (ZM) at 2.32 is valued about in line with its industry on P/B ratio, while Shopify (SHOP) at 15.02 carries an above-peer premium to book — SHOP is pricier on assets.
SHOP
Software & Services industry group
15.02
- Max
- 16.63
- SHOP
- 15.02
- Q3
- 8.50
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
ZM
Software & Services industry group
2.32
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- ZM
- 2.32
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | SHOP | ZM |
|---|---|---|
| P/E Ratio (TTM) | 91.36 | 8.34 |
| P/S Ratio (TTM) | 13.52 | 5.25 |
| P/B Ratio (MRQ) | 15.02 | 2.32 |
| Free Cash Flow Yield (TTM) | 0.86% | 7.53% |