Can Western Digital Outrun Shopify in the Next Rally?
Shopify fell -21% during the past Month. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Western Digital gives you more. Western Digital (WDC) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Shopify (SHOP) stock, suggesting you may be better off investing in WDC
- WDC’s quarterly revenue growth was 45.5%, vs. SHOP’s 34.3%.
- In addition, its Last 12 Months revenue growth came in at 32.0%, ahead of SHOP’s 31.8%.
- WDC leads on profitability over both periods – LTM margin of 31.2% and 3-year average of 12.7%.
These differences become even clearer when you look at the financials side by side. The table highlights how SHOP’s fundamentals stack up against those of WDC on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| SHOP | WDC | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 64.9 | 45.3 | WDC |
| Revenue Growth | |||
| Last Quarter | 34.3% | 45.5% | WDC |
| Last 12 Months | 31.8% | 32.0% | WDC |
| Last 3 Year Average | 28.0% | 25.5% | SHOP |
| Operating Margins | |||
| Last 12 Months | 17.0% | 31.2% | WDC |
| Last 3 Year Average | 12.4% | 12.7% | WDC |
| Momentum | |||
| Last 3 Year Return | 74.2% | 1605.1% | WDC |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
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See detailed fundamentals on Buy or Sell WDC Stock and Buy or Sell SHOP Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| SHOP Return | 22% | -75% | 124% | 36% | 51% | -35% | -7% | ||
| WDC Return | 18% | -52% | 66% | 14% | 288% | 167% | 1015% | <=== | |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 9% | 98% | ||
| Monthly Win Rates [3] | |||||||||
| SHOP Win Rate | 67% | 25% | 67% | 50% | 67% | 20% | 49% | ||
| WDC Win Rate | 50% | 42% | 58% | 67% | 92% | 80% | 65% | <=== | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 60% | 64% | ||
| Max Drawdowns [4] | |||||||||
| SHOP Max Drawdown | -29% | -81% | -34% | -42% | -41% | -43% | -45% | ||
| WDC Max Drawdown | -32% | -55% | -29% | -30% | -43% | -21% | -35% | ||
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | -13% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 5/21/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read WDC Dip Buyer Analyses and SHOP Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Still not sure about SHOP or WDC? Consider portfolio approach.
Smart Investing Begins With Portfolios
Stocks soar and sink – the key is staying invested. A balanced portfolio helps you ride market volatility, boosts gains, and reduces single stock risk.
Beating the market consistently is hard, but the Trefis High Quality (HQ) Portfolio makes it look achievable. By selecting 30 high-conviction stocks, the HQ strategy has historically outpaced the S&P 500, S&P Mid-cap, and Russell 2000. See how this curated selection delivers superior risk-adjusted returns in our detailed performance factsheet.