GOOGL vs. SHOP

Last updated Jun 4, 2026

GOOGL (Alphabet Inc Class A) and SHOP (Shopify Inc.) are both stocks. GOOGL operates in Internet Content & Information (Communication Services), while SHOP operates in Software - Application (Technology). Over the past 10 years, GOOGL returned 25.69%/yr vs 43.94%/yr for SHOP. At a 0.44 correlation, their price movements are largely independent.

Performance

GOOGL vs. SHOP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Alphabet Inc Class A (GOOGL) and Shopify Inc. (SHOP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, GOOGL achieves a 14.77% return, which is significantly higher than SHOP's -29.84% return. Over the past 10 years, GOOGL has underperformed SHOP with an annualized return of 25.69%, while SHOP has yielded a comparatively higher 43.94% annualized return.

GOOGL

• 1D: -0.79%
• 1M: -6.33%
• YTD: 14.77%
• 6M: 12.47%
• 1Y: 116.77%
• 3Y*: 42.66%
• 5Y*: 24.78%
• 10Y*: 25.69%

SHOP

• 1D: -3.48%
• 1M: -11.45%
• YTD: -29.84%
• 6M: -29.41%
• 1Y: 7.45%
• 3Y*: 24.67%
• 5Y*: -1.30%
• 10Y*: 43.94%

*Multi-year figures are annualized to reflect compound growth (CAGR)

GOOGL vs. SHOP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
GOOGL Alphabet Inc Class A	14.77%	65.99%	36.01%	58.32%	-39.09%	65.30%	30.85%	28.18%	-0.80%	32.93%
SHOP Shopify Inc.	-29.84%	51.39%	36.50%	124.43%	-74.80%	21.68%	184.71%	187.17%	37.08%	135.60%

Correlation

The correlation between GOOGL and SHOP is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.34
Correlation (3Y) Calculated over the trailing 3-year period	0.43
Correlation (5Y) Calculated over the trailing 5-year period	0.50
Correlation (10Y) Calculated over the trailing 10-year period	0.47
Correlation (All Time) Calculated using the full available price history since May 22, 2015	0.44

The correlation between GOOGL and SHOP shifts across timeframes, from 0.34 (1 year) to 0.50 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap GOOGL : $4.39T SHOP : $147.20B
EPS GOOGL : $13.11 SHOP : $1.02
PE Ratio GOOGL : 27.37 SHOP : 110.87
PEG Ratio GOOGL : 1.35 SHOP : 0.21
PS Ratio GOOGL : 10.38 SHOP : 16.06
PB Ratio GOOGL : 9.18 SHOP : 11.78
Total Revenue (TTM) GOOGL : $422.57B SHOP : $9.20B
Gross Profit (TTM) GOOGL : $255.12B SHOP : $5.93B
EBITDA (TTM) GOOGL : $174.08B SHOP : $1.60B

Return for Risk

GOOGL vs. SHOP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

GOOGL

GOOGL Risk / Return Rank: 96
GOOGL Sharpe Ratio Rank: 97
GOOGL Sortino Ratio Rank: 98
GOOGL Omega Ratio Rank: 96
GOOGL Calmar Ratio Rank: 93
GOOGL Martin Ratio Rank: 95

SHOP

SHOP Risk / Return Rank: 44
SHOP Sharpe Ratio Rank: 45
SHOP Sortino Ratio Rank: 44
SHOP Omega Ratio Rank: 43
SHOP Calmar Ratio Rank: 44
SHOP Martin Ratio Rank: 44

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

GOOGL vs. SHOP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Alphabet Inc Class A (GOOGL) and Shopify Inc. (SHOP). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	GOOGL	SHOP	Difference
Sharpe ratio Return per unit of total volatility	4.03	0.13	+3.90
Sortino ratio Return per unit of downside risk	5.33	0.60	+4.73
Omega ratio Gain probability vs. loss probability	1.65	1.07	+0.57
Calmar ratio Return relative to maximum drawdown	5.77	0.16	+5.61
Martin ratio Return relative to average drawdown	21.31	0.35	+20.96
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

GOOGL vs. SHOP - Sharpe Ratio Comparison

The current GOOGL Sharpe Ratio is 4.03, which is higher than the SHOP Sharpe Ratio of 0.13. The chart below compares the historical Sharpe Ratios of GOOGL and SHOP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	GOOGL	SHOP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.03	0.13	+3.90
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.80	-0.02	+0.82
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.89	0.75	+0.14
Sharpe Ratio (All Time) Calculated using the full available price history	0.84	0.69	+0.15

Drawdowns

GOOGL vs. SHOP - Drawdown Comparison

The maximum GOOGL drawdown since its inception was -65.29%, smaller than the maximum SHOP drawdown of -84.82%. Use the drawdown chart below to compare losses from any high point for GOOGL and SHOP.

Drawdown Indicators

	GOOGL	SHOP	Difference
Max Drawdown Largest peak-to-trough decline	-65.29%	-84.82%	+19.53%
Max Drawdown (1Y) Largest decline over 1 year	-20.37%	-46.71%	+26.34%
Max Drawdown (3Y) Largest decline over 3 years	-29.81%	-46.71%	+16.90%
Max Drawdown (5Y) Largest decline over 5 years	-44.32%	-84.82%	+40.50%
Max Drawdown (10Y) Largest decline over 10 years	-44.32%	-84.82%	+40.50%
Current Drawdown Current decline from peak	-10.84%	-36.91%	+26.07%
Average Drawdown Average peak-to-trough decline	-13.02%	-28.21%	+15.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.50%	21.36%	-15.86%

Volatility

GOOGL vs. SHOP - Volatility Comparison

The current volatility for Alphabet Inc Class A (GOOGL) is 8.29%, while Shopify Inc. (SHOP) has a volatility of 24.71%. This indicates that GOOGL experiences smaller price fluctuations and is considered to be less risky than SHOP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	GOOGL	SHOP	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.29%	24.71%	-16.42%
Volatility (6M) Calculated over the trailing 6-month period	20.56%	43.60%	-23.04%
Volatility (1Y) Calculated over the trailing 1-year period	29.22%	57.17%	-27.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	31.29%	65.51%	-34.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.10%	59.05%	-29.95%

Dividends

GOOGL vs. SHOP - Dividend Comparison

GOOGL's dividend yield for the trailing twelve months is around 0.23%, while SHOP has not paid dividends to shareholders.

Position	TTM	2025	2024
GOOGL Alphabet Inc Class A	0.23%	0.27%	0.32%
SHOP Shopify Inc.	0.00%	0.00%	0.00%

Financials

Frequently Asked Questions

Can I hold both GOOGL and SHOP in my portfolio?

GOOGL and SHOP have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, GOOGL or SHOP?

SHOP has higher volatility (24.71%) compared to GOOGL (8.29%). In terms of maximum drawdown, GOOGL dropped -65.29% vs SHOP's -84.82%.

Which has better risk-adjusted returns?

GOOGL currently has the higher Sharpe Ratio (4.03 vs 0.13), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.