Alphabet Inc. (GOOGL) 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 $4.25T against $109.8B — 38.7× the size. Alphabet Inc. trades at the lower P/E: 16.9× against 28.0×. Alphabet Inc. grew revenue faster over the last twelve months: 20.1% against 16.8%. Alphabet Inc. has the higher net margin (54.8% vs 18.2%) and the higher return on invested capital (18.6% vs 0.00%). Across the 22 metrics below, Alphabet Inc. leads on 14 and Spotify Technology on 8.

Valuation

Metric GOOGL SPOT Internet Content & Information median
P/E 16.91 28.04 11.54
P/S 9.28 5.17 0.86
P/B 6.65 11.20 1.20
Price to free cash flow 77.68 29.17 9.63
EV/EBITDA 23.11 31.08 8.68
EV/Sales 8.96 4.72 1.18
Earnings yield 5.91% 3.57% (2.42%)
Free cash flow yield 1.29% 3.43% 2.27%

Profitability

Metric GOOGL SPOT Internet Content & Information median
Gross margin 60.90% 32.79% 66.84%
Operating margin 33.11% 14.61% (3.41%)
Net margin 54.75% 18.18% (3.02%)
Free cash flow margin 11.95% 17.71% 1.75%
Return on equity 49.55% 44.47% 0.00%
Return on assets 34.29% 24.57% (0.36%)
Return on invested capital 18.60% 0.00% 0.00%

Growth

Metric GOOGL SPOT Internet Content & Information median
Revenue growth (TTM) 20.05% 16.83% 2.65%
EPS growth (last fiscal year) 34.45% 99.83% 34.45%
Revenue growth, 5-year CAGR 17.15% 16.65% 9.73%
Net income growth, 5-year CAGR 26.83% 0.00% 0.00%

Health

Metric GOOGL SPOT Internet Content & Information median
Debt to equity 0.15 0.00 0.01
Current ratio 2.72 2.11 1.82
Net debt to EBITDA (0.53) (4.12) (0.48)

Dividend

Metric GOOGL SPOT Internet Content & Information median
Dividend yield 0.25% — 1.07%
Payout ratio 0.04 — 0.28

Size

Metric GOOGL SPOT Internet Content & Information median
Market cap 4.25t 109.81b 318.52m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack