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 $114.7B against $7.0B — 16.4× the size. Spotify Technology trades at the lower P/E: 31.4× against 140×. 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 11 and Zillow Group, Inc. on 10.

Valuation

Metric SPOT Z Internet Content & Information median
P/E 31.43 140.27 12.10
P/S 5.79 2.50 0.93
P/B 12.55 1.63 1.26
Price to free cash flow 32.70 31.97 8.57
EV/EBITDA 35.19 23.88 9.76
EV/Sales 5.34 2.60 1.10
Earnings yield 3.18% 0.71% 0.70%
Free cash flow yield 3.06% 3.13% 3.77%

Profitability

Metric SPOT Z Internet Content & Information median
Gross margin 32.79% 72.88% 66.11%
Operating margin 14.61% 0.43% 0.36%
Net margin 18.18% 1.96% 1.24%
Free cash flow margin 17.71% 7.83% 3.47%
Return on equity 44.47% 1.21% 0.00%
Return on assets 24.57% 1.03% 0.50%
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% 5.54%
EPS growth (last fiscal year) 99.83% 118.75% 34.37%
Revenue growth, 5-year CAGR 16.65% 9.73% 10.75%
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 1.85
Net debt to EBITDA (4.12) (3.61) (0.53)

Dividend

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

Size

Metric SPOT Z Internet Content & Information median
Market cap 114.73b 7.01b 636.02m

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