Meta Platforms, Inc. (META) vs Spotify Technology (SPOT)

Meta Platforms, Inc. and Spotify Technology are both Internet Content & Information companies. Meta Platforms, Inc. is the larger, with a market value of $1.98T against $105.0B — 18.8× the size. Spotify Technology trades at the lower P/E: 27.0× against 27.9×. Meta Platforms, Inc. grew revenue faster over the last twelve months: 27.7% against 16.8%. Meta Platforms, Inc. has the higher net margin (29.8% vs 18.2%) and the higher return on invested capital (21.3% vs 0.00%). Across the 22 metrics below, Meta Platforms, Inc. leads on 11 and Spotify Technology on 11.

Valuation

Metric META SPOT Internet Content & Information median
P/E 27.94 26.96 10.24
P/S 8.37 4.97 0.87
P/B 7.32 10.77 1.32
Price to free cash flow 46.65 28.04 8.85
EV/EBITDA 17.37 29.76 8.86
EV/Sales 8.35 4.52 1.15
Earnings yield 3.58% 3.71% (1.58%)
Free cash flow yield 2.14% 3.57% 2.32%

Profitability

Metric META SPOT Internet Content & Information median
Gross margin 81.75% 32.79% 66.84%
Operating margin 38.08% 14.61% (3.41%)
Net margin 29.84% 18.18% (3.02%)
Free cash flow margin 17.95% 17.71% 1.75%
Return on equity 29.85% 44.47% 0.00%
Return on assets 18.29% 24.57% (0.36%)
Return on invested capital 21.34% 0.00% 0.00%

Growth

Metric META SPOT Internet Content & Information median
Revenue growth (TTM) 27.65% 16.83% 2.65%
EPS growth (last fiscal year) (1.55%) 99.83% —
Revenue growth, 5-year CAGR 18.51% 16.65% 9.73%
Net income growth, 5-year CAGR 15.71% 0.00% 0.00%

Health

Metric META SPOT Internet Content & Information median
Debt to equity 0.32 0.00 0.01
Current ratio 2.23 2.11 1.82
Net debt to EBITDA (0.22) (4.12) (0.48)

Dividend

Metric META SPOT Internet Content & Information median
Dividend yield 0.24% — 3.19%
Payout ratio 0.00 0.00 0.00

Size

Metric META SPOT Internet Content & Information median
Market cap 1.98t 105.04b 283.68m

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