Applovin Corp (APP)vsSpotify Technology SA (SPOT)
APP
Applovin Corp
$270.87
-2.23%
COMMUNICATION SERVICES · Cap: $93.65B
SPOT
Spotify Technology SA
$529.14
+0.52%
COMMUNICATION SERVICES · Cap: $97.24B
Smart Verdict
WallStSmart Research — data-driven comparison
Spotify Technology SA generates 165% more annual revenue ($18.11B vs $6.83B). APP leads profitability with a 64.6% profit margin vs 18.4%. APP appears more attractively valued with a PEG of 0.68. APP earns a higher WallStSmart Score of 79/100 (B+).
APP
Strong Buy79
out of 100
Grade: B+
SPOT
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-5.0%
Fair Value
$268.03
Current Price
$270.87
$2.84 premium
Margin of Safety
-58.0%
Fair Value
$308.42
Current Price
$529.14
$220.72 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 139 in profit
Keeps 65 of every $100 in revenue as profit
Strong operational efficiency at 77.7%
Revenue surging 52.8% year-over-year
Earnings expanding 57.0% YoY
Safe zone — low bankruptcy risk
Every $100 of equity generates 40 in profit
Earnings expanding 222.4% YoY
Conservative balance sheet, low leverage
Large-cap with strong market position
Areas to Watch
Elevated debt levels
Trading at 28.7x book value
Moderate valuation
Trading at 11.4x 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 64.6% and operating margin at 77.7%. Revenue growth of 52.8% 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 18.4% and operating margin at 13.7%. Revenue growth of 13.9% demonstrates continued momentum.
Bear Case : APP
The primary concerns for APP are Debt/Equity, Price/Book.
Bear Case : SPOT
The primary concerns for SPOT are 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 2.56 — expect wider price swings.
APP is growing revenue faster at 52.8% — sustainability is the question.
APP generates stronger free cash flow (869M), providing more financial flexibility.
Bottom Line
APP scores higher overall (79/100 vs 66/100), backed by strong 64.6% margins and 52.8% revenue growth. Both earn "Strong Buy" and "Strong 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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