WallStSmart

Liberty Latin America Ltd (LILA)vsSpotify Technology SA (SPOT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Spotify Technology SA generates 306% more annual revenue ($18.11B vs $4.46B). SPOT leads profitability with a 18.4% profit margin vs -2.2%. SPOT appears more attractively valued with a PEG of 1.59. SPOT earns a higher WallStSmart Score of 64/100 (C+).

LILA

Hold

39

out of 100

Grade: F

Growth: 2.7Profit: 4.0Value: 5.7Quality: 3.5
Piotroski: 5/9Altman Z: -0.04

SPOT

Buy

64

out of 100

Grade: C+

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LILAUndervalued (+68.1%)

Margin of Safety

+68.1%

Fair Value

$25.75

Current Price

$8.81

$16.94 discount

UndervaluedFair: $25.75Overvalued
SPOTSignificantly Overvalued (-58.4%)

Margin of Safety

-58.4%

Fair Value

$307.58

Current Price

$525.75

$218.17 premium

UndervaluedFair: $307.58Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LILA0 strengths · Avg: 0/10

No standout strengths identified

SPOT4 strengths · Avg: 9.8/10
Return on EquityProfitability
35.6%10/10

Every $100 of equity generates 36 in profit

EPS GrowthGrowth
222.4%10/10

Earnings expanding 222.4% YoY

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

Market CapQuality
$111.52B9/10

Large-cap with strong market position

Areas to Watch

LILA4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
1.5%4/10

1.5% revenue growth

Market CapQuality
$1.69B3/10

Smaller company, higher risk/reward

PEG RatioValuation
3.612/10

Expensive relative to growth rate

Return on EquityProfitability
-92.0%2/10

ROE of -92.0% — below average capital efficiency

SPOT3 concerns · Avg: 4.0/10
PEG RatioValuation
1.594/10

Expensive relative to growth rate

P/E RatioValuation
29.4x4/10

Moderate valuation

Price/BookValuation
11.0x4/10

Trading at 11.0x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : LILA

LILA has a balanced fundamental profile.

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 : LILA

The primary concerns for LILA are Revenue Growth, Market Cap, PEG Ratio. Debt-to-equity of 16.18 is elevated, increasing financial risk.

Bear Case : SPOT

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

Key Dynamics to Monitor

LILA profiles as a turnaround stock while SPOT is a mature play — different risk/reward profiles.

SPOT carries more volatility with a beta of 1.59 — expect wider price swings.

SPOT is growing revenue faster at 13.9% — sustainability is the question.

SPOT generates stronger free cash flow (910M), providing more financial flexibility.

Bottom Line

SPOT scores higher overall (64/100 vs 39/100), backed by strong 18.4% margins and 13.9% revenue growth. LILA offers better value entry with a 68.1% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Liberty Latin America Ltd

COMMUNICATION SERVICES · TELECOM SERVICES · USA

Liberty Latin America Ltd., provides fixed, mobile and submarine telecommunications services. The company is headquartered in Denver, Colorado.

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.

Want to dig deeper into these stocks?