Applovin Corp (APP)vsSpotify Technology SA (SPOT)
APP
Applovin Corp
$498.76
+4.54%
COMMUNICATION SERVICES · Cap: $160.27B
SPOT
Spotify Technology SA
$462.29
+0.68%
COMMUNICATION SERVICES · Cap: $93.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Spotify Technology SA generates 184% more annual revenue ($17.53B vs $6.16B). APP leads profitability with a 64.3% profit margin vs 15.4%. APP appears more attractively valued with a PEG of 1.31. APP earns a higher WallStSmart Score of 77/100 (B+).
APP
Strong Buy77
out of 100
Grade: B+
SPOT
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for APP.
Margin of Safety
-64.9%
Fair Value
$295.49
Current Price
$462.29
$166.80 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 168 in profit
Keeps 64 of every $100 in revenue as profit
Strong operational efficiency at 78.1%
Revenue surging 59.0% year-over-year
Earnings expanding 113.1% YoY
Safe zone — low bankruptcy risk
Every $100 of equity generates 34 in profit
Earnings expanding 222.4% YoY
Conservative balance sheet, low leverage
Large-cap with strong market position
Areas to Watch
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 70.9x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 9.7x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : APP
The strongest argument for APP centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 64.3% and operating margin at 78.1%. Revenue growth of 59.0% demonstrates continued momentum.
Bull Case : SPOT
The strongest argument for SPOT centers on Return on Equity, EPS Growth, Debt/Equity. Profitability is solid with margins at 15.4% and operating margin at 15.8%.
Bear Case : APP
The primary concerns for APP are Debt/Equity, P/E Ratio, Price/Book. A P/E of 41.5x leaves little room for execution misses.
Bear Case : SPOT
The primary concerns for SPOT are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
APP profiles as a growth stock while SPOT is a mature play — different risk/reward profiles.
APP carries more volatility with a beta of 2.46 — expect wider price swings.
APP is growing revenue faster at 59.0% — 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 64/100), backed by strong 64.3% margins and 59.0% 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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