WallStSmart

Liberty Latin America Ltd Class C (LILAK)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%. LILAK appears more attractively valued with a PEG of 0.83. SPOT earns a higher WallStSmart Score of 66/100 (B-).

LILAK

Hold

47

out of 100

Grade: D+

Growth: 2.7Profit: 4.0Value: 7.7Quality: 3.5
Piotroski: 5/9Altman Z: -0.04

SPOT

Strong Buy

66

out of 100

Grade: B-

Growth: 8.0Profit: 8.0Value: 4.7Quality: 8.0
Piotroski: 4/9Altman Z: 2.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LILAKUndervalued (+52.4%)

Margin of Safety

+52.4%

Fair Value

$17.39

Current Price

$8.70

$8.69 discount

UndervaluedFair: $17.39Overvalued
SPOTSignificantly Overvalued (-58.1%)

Margin of Safety

-58.1%

Fair Value

$308.12

Current Price

$501.30

$193.18 premium

UndervaluedFair: $308.12Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LILAK1 strengths · Avg: 8.0/10
PEG RatioValuation
0.838/10

Growing faster than its price suggests

SPOT4 strengths · Avg: 9.8/10
Return on EquityProfitability
39.8%10/10

Every $100 of equity generates 40 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
$104.73B9/10

Large-cap with strong market position

Areas to Watch

LILAK4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
1.5%4/10

1.5% revenue growth

Market CapQuality
$1.66B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-92.0%2/10

ROE of -92.0% — below average capital efficiency

EPS GrowthGrowth
-15.5%2/10

Earnings declined 15.5%

SPOT2 concerns · Avg: 4.0/10
P/E RatioValuation
27.9x4/10

Moderate valuation

Price/BookValuation
10.5x4/10

Trading at 10.5x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : LILAK

The strongest argument for LILAK centers on PEG Ratio. PEG of 0.83 suggests the stock is reasonably priced for its growth.

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 : LILAK

The primary concerns for LILAK are Revenue Growth, Market Cap, Return on Equity. Debt-to-equity of 16.18 is elevated, increasing financial risk.

Bear Case : SPOT

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

Key Dynamics to Monitor

LILAK 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 (796M), providing more financial flexibility.

Bottom Line

SPOT scores higher overall (66/100 vs 47/100), backed by strong 18.4% margins and 13.9% revenue growth. LILAK offers better value entry with a 52.4% margin of safety. Both earn "Strong 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 Class C

COMMUNICATION SERVICES · TELECOM SERVICES · USA

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

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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