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 $114.7B against $21.7B — 5.3× the size. Baidu, Inc. has negative trailing earnings, so its P/E is not meaningful; Spotify Technology trades at 31.4×. 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 −2.58%) and the higher return on invested capital (0.00% vs −2.17%). Across the 19 metrics below, Spotify Technology leads on 14 and Baidu, Inc. on 5.

Valuation

Metric BIDU SPOT Internet Content & Information median
P/E n/m 31.43 12.10
P/S 1.39 5.79 0.93
P/B 0.66 12.55 1.26
Price to free cash flow n/m 32.70 8.57
EV/EBITDA n/m 35.19 9.76
EV/Sales 0.71 5.34 1.10
Earnings yield (2.43%) 3.18% 0.70%
Free cash flow yield (8.87%) 3.06% 3.77%

Profitability

Metric BIDU SPOT Internet Content & Information median
Gross margin 40.92% 32.79% 66.11%
Operating margin (5.36%) 14.61% 0.36%
Net margin (2.58%) 18.18% 1.24%
Free cash flow margin 0.00% 17.71% 3.47%
Return on equity 0.00% 44.47% 0.00%
Return on assets (0.73%) 24.57% 0.50%
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% 5.54%
EPS growth (last fiscal year) (74.82%) 99.83% 34.37%
Revenue growth, 5-year CAGR 2.38% 16.65% 10.75%
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 1.85
Net debt to EBITDA (2.46) (4.12) (0.53)

Dividend

Metric BIDU SPOT Internet Content & Information median
Dividend yield — — 1.13%
Payout ratio — — 0.28

Size

Metric BIDU SPOT Internet Content & Information median
Market cap 21.72b 114.73b 636.02m

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