Spotify Technology (SPOT) vs Zillow Group, Inc. (Z)

Spotify Technology and Zillow Group, Inc. are both Internet Content & Information companies. Spotify Technology is the larger, with a market value of $108.4B against $6.6B — 16.4× the size. Spotify Technology trades at the lower P/E: 28.0× against 132×. Zillow Group, Inc. grew revenue faster over the last twelve months: 17.7% against 16.8%. Spotify Technology has the higher net margin (18.2% vs 1.96%) and the lower return on invested capital (0.00% vs 0.18%). Across the 21 metrics below, Spotify Technology leads on 13 and Zillow Group, Inc. on 8.

Valuation

Metric SPOT Z Internet Content & Information median
P/E 27.97 131.64 10.85
P/S 5.15 2.35 0.90
P/B 11.17 1.53 1.25
Price to free cash flow 29.10 30.00 9.41
EV/EBITDA 30.99 22.46 8.63
EV/Sales 4.70 2.45 1.17
Earnings yield 3.58% 0.76% (2.34%)
Free cash flow yield 3.44% 3.33% 2.24%

Profitability

Metric SPOT Z Internet Content & Information median
Gross margin 32.79% 72.88% 66.84%
Operating margin 14.61% 0.43% (3.41%)
Net margin 18.18% 1.96% (3.02%)
Free cash flow margin 17.71% 7.83% 1.75%
Return on equity 44.47% 1.21% 0.00%
Return on assets 24.57% 1.03% (0.36%)
Return on invested capital 0.00% 0.18% 0.00%

Growth

Metric SPOT Z Internet Content & Information median
Revenue growth (TTM) 16.83% 17.67% 2.65%
EPS growth (last fiscal year) 99.83% 118.75% 34.45%
Revenue growth, 5-year CAGR 16.65% 9.73% 9.73%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric SPOT Z Internet Content & Information median
Debt to equity 0.00 0.11 0.01
Current ratio 2.11 1.92 1.82
Net debt to EBITDA (4.12) (3.61) (0.48)

Dividend

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

Size

Metric SPOT Z Internet Content & Information median
Market cap 108.38b 6.59b 310.61m

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