Baidu, Inc. (BIDU) vs Spotify Technology (SPOT)

Baidu, Inc. and Spotify Technology are both Internet Content & Information companies. Spotify Technology is the larger, with a market value of $108.4B against $23.2B — 4.7× the size. Baidu, Inc. has negative trailing earnings, so its P/E is not meaningful; Spotify Technology trades at 28.0×. Spotify Technology grew revenue faster over the last twelve months: 16.8% against 2.43%. Spotify Technology has the higher net margin (18.2% vs −2.38%) and the higher return on invested capital (0.00% vs −2.17%). Across the 20 metrics below, Spotify Technology leads on 15 and Baidu, Inc. on 5.

Valuation

Metric BIDU SPOT Internet Content & Information median
P/E n/m 27.97 10.85
P/S 1.55 5.15 0.90
P/B 0.73 11.17 1.25
Price to free cash flow 391.48 29.10 9.41
EV/EBITDA n/m 30.99 8.63
EV/Sales 0.88 4.70 1.17
Earnings yield (1.79%) 3.58% (2.34%)
Free cash flow yield 0.26% 3.44% 2.24%

Profitability

Metric BIDU SPOT Internet Content & Information median
Gross margin 40.92% 32.79% 66.84%
Operating margin (5.36%) 14.61% (3.41%)
Net margin (2.38%) 18.18% (3.02%)
Free cash flow margin 0.00% 17.71% 1.75%
Return on equity 0.00% 44.47% 0.00%
Return on assets (0.67%) 24.57% (0.36%)
Return on invested capital (2.17%) 0.00% 0.00%

Growth

Metric BIDU SPOT Internet Content & Information median
Revenue growth (TTM) 2.43% 16.83% 2.65%
EPS growth (last fiscal year) (74.82%) 99.83% 34.45%
Revenue growth, 5-year CAGR 2.38% 16.65% 9.73%
Net income growth, 5-year CAGR (25.34%) 0.00% 0.00%

Health

Metric BIDU SPOT Internet Content & Information median
Debt to equity 0.29 0.00 0.01
Current ratio 2.33 2.11 1.82
Net debt to EBITDA (2.46) (4.12) (0.48)

Dividend

Metric BIDU SPOT Internet Content & Information median
Dividend yield — — 1.11%
Payout ratio — — 0.28

Size

Metric BIDU SPOT Internet Content & Information median
Market cap 23.18b 108.38b 310.61m

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