WallStSmart

Ambev SA ADR (ABEV)vsSpotify Technology SA (SPOT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ambev SA ADR generates 403% more annual revenue ($88.21B vs $17.53B). ABEV leads profitability with a 17.7% profit margin vs 15.4%. SPOT appears more attractively valued with a PEG of 1.83. SPOT earns a higher WallStSmart Score of 64/100 (C+).

ABEV

Buy

57

out of 100

Grade: C

Growth: 3.3Profit: 8.5Value: 7.3Quality: 5.8
Piotroski: 5/9Altman Z: 2.39

SPOT

Buy

64

out of 100

Grade: C+

Growth: 8.0Profit: 8.5Value: 4.0Quality: 7.5
Piotroski: 4/9Altman Z: 2.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ABEVUndervalued (+74.4%)

Margin of Safety

+74.4%

Fair Value

$11.91

Current Price

$3.29

$8.62 discount

UndervaluedFair: $11.91Overvalued
SPOTSignificantly Overvalued (-44.3%)

Margin of Safety

-44.3%

Fair Value

$337.60

Current Price

$417.83

$80.23 premium

UndervaluedFair: $337.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ABEV5 strengths · Avg: 8.6/10
Free Cash FlowQuality
$11.62B10/10

Generating 11.6B in free cash flow

Market CapQuality
$53.50B9/10

Large-cap with strong market position

P/E RatioValuation
17.1x8/10

Attractively priced relative to earnings

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
26.5%8/10

Strong operational efficiency at 26.5%

SPOT4 strengths · Avg: 9.5/10
Return on EquityProfitability
38.0%10/10

Every $100 of equity generates 38 in profit

EPS GrowthGrowth
222.4%10/10

Earnings expanding 222.4% YoY

Market CapQuality
$87.44B9/10

Large-cap with strong market position

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

Areas to Watch

ABEV3 concerns · Avg: 3.3/10
PEG RatioValuation
2.314/10

Expensive relative to growth rate

EPS GrowthGrowth
2.2%4/10

2.2% earnings growth

Revenue GrowthGrowth
-0.1%2/10

Revenue declined 0.1%

SPOT3 concerns · Avg: 4.0/10
PEG RatioValuation
1.834/10

Expensive relative to growth rate

P/E RatioValuation
28.2x4/10

Moderate valuation

Price/BookValuation
8.8x4/10

Trading at 8.8x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : ABEV

The strongest argument for ABEV centers on Free Cash Flow, Market Cap, P/E Ratio. Profitability is solid with margins at 17.7% and operating margin at 26.5%.

Bull Case : SPOT

The strongest argument for SPOT centers on Return on Equity, EPS Growth, Market Cap. Profitability is solid with margins at 15.4% and operating margin at 15.8%.

Bear Case : ABEV

The primary concerns for ABEV are PEG Ratio, EPS Growth, Revenue Growth.

Bear Case : SPOT

The primary concerns for SPOT are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

ABEV profiles as a declining stock while SPOT is a mature play — different risk/reward profiles.

SPOT carries more volatility with a beta of 1.55 — expect wider price swings.

SPOT is growing revenue faster at 8.2% — sustainability is the question.

ABEV generates stronger free cash flow (11.6B), providing more financial flexibility.

Bottom Line

SPOT scores higher overall (64/100 vs 57/100), backed by strong 15.4% margins. ABEV offers better value entry with a 74.4% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Ambev SA ADR

CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA

Ambev SA produces, distributes and sells beer, draft beer, carbonated soft drinks (CSD), other non-alcoholic beverages, malt and food products in the Americas. The company is headquartered in So Paulo, Brazil.

Spotify Technology SA

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

Spotify Technology SA, provides audio streaming services worldwide. The company is headquartered in Luxembourg, Luxembourg.

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