Match Group Inc. (MTCH) vs Spotify Technology (SPOT)

Match Group Inc. and Spotify Technology are both Internet Content & Information companies. Spotify Technology is the larger, with a market value of $114.7B against $9.8B — 11.7× the size. Match Group Inc. trades at the lower P/E: 13.8× against 31.4×. Spotify Technology grew revenue faster over the last twelve months: 16.8% against 1.70%. Match Group Inc. has the higher net margin (20.2% vs 18.2%) and the higher return on invested capital (22.6% vs 0.00%). Across the 21 metrics below, Match Group Inc. leads on 14 and Spotify Technology on 7.

Valuation

Metric MTCH SPOT Internet Content & Information median
P/E 13.80 31.43 12.10
P/S 2.74 5.79 0.93
P/B n/m 12.55 1.26
Price to free cash flow 8.43 32.70 8.57
EV/EBITDA 11.79 35.19 9.76
EV/Sales 3.71 5.34 1.10
Earnings yield 7.24% 3.18% 0.70%
Free cash flow yield 11.86% 3.06% 3.77%

Profitability

Metric MTCH SPOT Internet Content & Information median
Gross margin 74.80% 32.79% 66.11%
Operating margin 28.15% 14.61% 0.36%
Net margin 20.17% 18.18% 1.24%
Free cash flow margin 32.53% 17.71% 3.47%
Return on equity (302.58%) 44.47% 0.00%
Return on assets 17.91% 24.57% 0.50%
Return on invested capital 22.61% 0.00% 0.00%

Growth

Metric MTCH SPOT Internet Content & Information median
Revenue growth (TTM) 1.70% 16.83% 5.54%
EPS growth (last fiscal year) 17.82% 99.83% 34.37%
Revenue growth, 5-year CAGR 7.84% 16.65% 10.75%
Net income growth, 5-year CAGR 30.46% 0.00% 0.00%

Health

Metric MTCH SPOT Internet Content & Information median
Debt to equity (14.98) 0.00 0.01
Current ratio 1.72 2.11 1.85
Net debt to EBITDA 3.01 (4.12) (0.53)

Dividend

Metric MTCH SPOT Internet Content & Information median
Dividend yield 1.91% — 1.13%
Payout ratio 0.28 — 0.28

Size

Metric MTCH SPOT Internet Content & Information median
Market cap 9.79b 114.73b 636.02m

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