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 $1.55T against $126.5B — 12.2× the size. Meta Platforms, Inc. trades at the lower P/E: 20.4× against 36.8×. Meta Platforms, Inc. grew revenue faster over the last twelve months: 27.5% against 16.9%. Meta Platforms, Inc. has the higher net margin (31.2% vs 15.5%) and the higher return on invested capital (18.3% 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 20.41 36.84 12.38
P/S 6.40 5.80 0.93
P/B 5.67 12.60 1.24
Price to free cash flow 53.95 35.35 10.76
EV/EBITDA 14.80 35.30 10.74
EV/Sales 6.39 5.34 1.20
Earnings yield 4.90% 2.71% (1.71%)
Free cash flow yield 1.85% 2.83% 4.26%

Profitability

Metric META SPOT Internet Content & Information median
Gross margin 81.03% 33.11% 63.25%
Operating margin 32.86% 14.56% (1.87%)
Net margin 31.15% 15.49% (1.37%)
Free cash flow margin 11.86% 16.40% 3.47%
Return on equity 32.26% 35.36% (1.19%)
Return on assets 19.23% 20.13% 0.00%
Return on invested capital 18.32% 0.00% 0.00%

Growth

Metric META SPOT Internet Content & Information median
Revenue growth (TTM) 27.53% 16.91% 6.92%
EPS growth (last fiscal year) (1.55%) 99.83% 34.37%
Revenue growth, 5-year CAGR 18.51% 16.65% 10.46%
Net income growth, 5-year CAGR 15.71% 0.00% 0.00%

Health

Metric META SPOT Internet Content & Information median
Debt to equity 0.30 0.00 0.01
Current ratio 1.90 2.13 1.84
Net debt to EBITDA (0.22) (4.12) (0.53)

Dividend

Metric META SPOT Internet Content & Information median
Dividend yield 0.35% — 1.19%
Payout ratio 0.07 — 0.27

Size

Metric META SPOT Internet Content & Information median
Market cap 1.55t 126.50b 693.23m

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