Snap Inc. (SNAP) vs Spotify Technology (SPOT)

Snap Inc. and Spotify Technology are both Internet Content & Information companies. Spotify Technology is the larger, with a market value of $114.7B against $9.6B — 11.9× the size. Snap Inc. has negative trailing earnings, so its P/E is not meaningful; Spotify Technology trades at 31.4×. Spotify Technology grew revenue faster over the last twelve months: 16.8% against 12.7%. Spotify Technology has the higher net margin (18.2% vs −4.90%) and the higher return on invested capital (0.00% vs −7.22%). Across the 19 metrics below, Spotify Technology leads on 11 and Snap Inc. on 8.

Valuation

Metric SNAP SPOT Internet Content & Information median
P/E n/m 31.43 12.10
P/S 1.40 5.79 0.93
P/B 4.63 12.55 1.26
Price to free cash flow 12.83 32.70 8.57
EV/EBITDA n/m 35.19 9.76
EV/Sales 1.54 5.34 1.10
Earnings yield (3.36%) 3.18% 0.70%
Free cash flow yield 7.79% 3.06% 3.77%

Profitability

Metric SNAP SPOT Internet Content & Information median
Gross margin 57.33% 32.79% 66.11%
Operating margin (5.10%) 14.61% 0.36%
Net margin (4.90%) 18.18% 1.24%
Free cash flow margin 11.11% 17.71% 3.47%
Return on equity (15.58%) 44.47% 0.00%
Return on assets (4.19%) 24.57% 0.50%
Return on invested capital (7.22%) 0.00% 0.00%

Growth

Metric SNAP SPOT Internet Content & Information median
Revenue growth (TTM) 12.65% 16.83% 5.54%
EPS growth (last fiscal year) 35.71% 99.83% 34.37%
Revenue growth, 5-year CAGR 18.80% 16.65% 10.75%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric SNAP SPOT Internet Content & Information median
Debt to equity 1.83 0.00 0.01
Current ratio 2.94 2.11 1.85
Net debt to EBITDA (1.65) (4.12) (0.53)

Dividend

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

Size

Metric SNAP SPOT Internet Content & Information median
Market cap 9.61b 114.73b 636.02m

Compare with another peer

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