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 $108.4B against $9.5B — 11.4× the size. Match Group Inc. trades at the lower P/E: 13.7× against 28.0×. 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 13.70 27.97 10.85
P/S 2.72 5.15 0.90
P/B n/m 11.17 1.25
Price to free cash flow 8.37 29.10 9.41
EV/EBITDA 11.72 30.99 8.63
EV/Sales 3.69 4.70 1.17
Earnings yield 7.30% 3.58% (2.34%)
Free cash flow yield 11.95% 3.44% 2.24%

Profitability

Metric MTCH SPOT Internet Content & Information median
Gross margin 74.80% 32.79% 66.84%
Operating margin 28.15% 14.61% (3.41%)
Net margin 20.17% 18.18% (3.02%)
Free cash flow margin 32.53% 17.71% 1.75%
Return on equity (302.58%) 44.47% 0.00%
Return on assets 17.91% 24.57% (0.36%)
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% 2.65%
EPS growth (last fiscal year) 17.82% 99.83% 34.45%
Revenue growth, 5-year CAGR 7.84% 16.65% 9.73%
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 1.82
Net debt to EBITDA 3.01 (4.12) (0.48)

Dividend

Metric MTCH SPOT Internet Content & Information median
Dividend yield 1.92% — 1.11%
Payout ratio 0.28 — 0.28

Size

Metric MTCH SPOT Internet Content & Information median
Market cap 9.53b 108.38b 310.61m

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