WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ambev SA ADR generates 413% more annual revenue ($88.24B vs $17.19B). ABEV leads profitability with a 17.6% profit margin vs 12.9%. ABEV appears more attractively valued with a PEG of 1.95. SPOT earns a higher WallStSmart Score of 62/100 (C+).

ABEV

Buy

57

out of 100

Grade: C

Growth: 2.7Profit: 8.5Value: 7.3Quality: 5.8
Piotroski: 5/9Altman Z: 2.39

SPOT

Buy

62

out of 100

Grade: C+

Growth: 8.0Profit: 8.0Value: 8.7Quality: 7.5
Piotroski: 4/9Altman Z: 2.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ABEVSignificantly Overvalued (-136.4%)

Margin of Safety

-136.4%

Fair Value

$1.29

Current Price

$2.79

$1.50 premium

UndervaluedFair: $1.29Overvalued
SPOTUndervalued (+12.6%)

Margin of Safety

+12.6%

Fair Value

$557.39

Current Price

$484.85

$72.54 discount

UndervaluedFair: $557.39Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ABEV4 strengths · Avg: 8.5/10
Free Cash FlowQuality
$11.62B10/10

Generating 11.6B in free cash flow

P/E RatioValuation
14.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.2%8/10

Strong operational efficiency at 28.2%

SPOT4 strengths · Avg: 9.5/10
Return on EquityProfitability
31.9%10/10

Every $100 of equity generates 32 in profit

EPS GrowthGrowth
213.9%10/10

Earnings expanding 213.9% YoY

Market CapQuality
$97.70B9/10

Large-cap with strong market position

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

Areas to Watch

ABEV3 concerns · Avg: 2.7/10
PEG RatioValuation
1.954/10

Expensive relative to growth rate

Revenue GrowthGrowth
-8.2%2/10

Revenue declined 8.2%

EPS GrowthGrowth
-10.1%2/10

Earnings declined 10.1%

SPOT3 concerns · Avg: 4.0/10
PEG RatioValuation
1.994/10

Expensive relative to growth rate

P/E RatioValuation
39.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
10.4x4/10

Trading at 10.4x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : ABEV

The strongest argument for ABEV centers on Free Cash Flow, P/E Ratio, Price/Book. Profitability is solid with margins at 17.6% and operating margin at 28.2%.

Bull Case : SPOT

The strongest argument for SPOT centers on Return on Equity, EPS Growth, Market Cap.

Bear Case : ABEV

The primary concerns for ABEV are PEG Ratio, Revenue Growth, EPS 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 value play — different risk/reward profiles.

SPOT carries more volatility with a beta of 1.72 — expect wider price swings.

SPOT is growing revenue faster at 6.8% — sustainability is the question.

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

Bottom Line

SPOT scores higher overall (62/100 vs 57/100). 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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