Alphabet Inc. (GOOG) vs Spotify Technology (SPOT)

Alphabet Inc. and Spotify Technology are both Internet Content & Information companies. Alphabet Inc. is the larger, with a market value of $3.45T against $126.5B — 27.3× the size. Alphabet Inc. trades at the lower P/E: 14.6× against 36.8×. Alphabet Inc. grew revenue faster over the last twelve months: 22.2% against 16.9%. Alphabet Inc. has the higher net margin (50.0% vs 15.5%) and the higher return on invested capital (18.3% vs 0.00%). Across the 22 metrics below, Alphabet Inc. leads on 14 and Spotify Technology on 8.

Valuation

Metric GOOG SPOT Internet Content & Information median
P/E 14.57 36.84 12.38
P/S 7.35 5.80 0.93
P/B 5.25 12.60 1.24
Price to free cash flow 175.37 35.35 10.76
EV/EBITDA 17.97 35.30 10.74
EV/Sales 7.05 5.34 1.20
Earnings yield 6.86% 2.71% (1.71%)
Free cash flow yield 0.57% 2.83% 4.26%

Profitability

Metric GOOG SPOT Internet Content & Information median
Gross margin 60.86% 33.11% 63.25%
Operating margin 33.32% 14.56% (1.87%)
Net margin 49.95% 15.49% (1.37%)
Free cash flow margin 4.19% 16.40% 3.47%
Return on equity 44.98% 35.36% (1.19%)
Return on assets 30.56% 20.13% 0.00%
Return on invested capital 18.25% 0.00% 0.00%

Growth

Metric GOOG SPOT Internet Content & Information median
Revenue growth (TTM) 22.21% 16.91% 6.92%
EPS growth (last fiscal year) 34.45% 99.83% 34.37%
Revenue growth, 5-year CAGR 17.15% 16.65% 10.46%
Net income growth, 5-year CAGR 26.83% 0.00% 0.00%

Health

Metric GOOG SPOT Internet Content & Information median
Debt to equity 0.18 0.00 0.01
Current ratio 2.79 2.13 1.84
Net debt to EBITDA (0.53) (4.12) (0.53)

Dividend

Metric GOOG SPOT Internet Content & Information median
Dividend yield 0.30% — 1.19%
Payout ratio 0.04 — 0.27

Size

Metric GOOG SPOT Internet Content & Information median
Market cap 3.45t 126.50b 693.23m

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