Applovin Corp (APP)vsSpotify Technology SA (SPOT)
APP
Applovin Corp
$435.91
-5.02%
COMMUNICATION SERVICES · Cap: $155.10B
SPOT
Spotify Technology SA
$473.21
-2.40%
COMMUNICATION SERVICES · Cap: $99.82B
Smart Verdict
WallStSmart Research — data-driven comparison
Spotify Technology SA generates 214% more annual revenue ($17.19B vs $5.48B). APP leads profitability with a 60.8% profit margin vs 12.9%. APP appears more attractively valued with a PEG of 1.22. APP earns a higher WallStSmart Score of 77/100 (B+).
APP
Strong Buy77
out of 100
Grade: B+
SPOT
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+10.4%
Fair Value
$470.34
Current Price
$435.91
$34.43 discount
Margin of Safety
+13.1%
Fair Value
$560.66
Current Price
$473.21
$87.45 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 61 of every $100 in revenue as profit
Strong operational efficiency at 76.9%
Revenue surging 65.9% year-over-year
Earnings expanding 84.7% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 32 in profit
Large-cap with strong market position
Conservative balance sheet, low leverage
Areas to Watch
ROE of 2.1% — below average capital efficiency
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 69.1x book value
Expensive relative to growth rate
Trading at 10.1x book value
2.1% earnings growth
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : APP
The strongest argument for APP centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 60.8% and operating margin at 76.9%. Revenue growth of 65.9% demonstrates continued momentum.
Bull Case : SPOT
The strongest argument for SPOT centers on Return on Equity, Market Cap, Debt/Equity.
Bear Case : APP
The primary concerns for APP are Return on Equity, Debt/Equity, P/E Ratio. A P/E of 45.7x leaves little room for execution misses. Debt-to-equity of 1.66 is elevated, increasing financial risk.
Bear Case : SPOT
The primary concerns for SPOT are PEG Ratio, Price/Book, EPS Growth. A P/E of 40.5x leaves little room for execution misses.
Key Dynamics to Monitor
APP profiles as a growth stock while SPOT is a value play — different risk/reward profiles.
APP carries more volatility with a beta of 2.50 — expect wider price swings.
APP is growing revenue faster at 65.9% — sustainability is the question.
APP generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
APP scores higher overall (77/100 vs 62/100), backed by strong 60.8% margins and 65.9% revenue growth. Both earn "Strong 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.
Applovin Corp
COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA
AppLovin Corporation is committed to creating a software-based platform for mobile application developers to improve the marketing and monetization of their applications globally. The company is headquartered in Palo Alto, California.
Visit Website →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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