Roku Inc (ROKU)vsSpotify Technology SA (SPOT)
ROKU
Roku Inc
$145.09
-0.17%
COMMUNICATION SERVICES · Cap: $21.43B
SPOT
Spotify Technology SA
$522.70
-0.25%
COMMUNICATION SERVICES · Cap: $98.32B
Smart Verdict
WallStSmart Research — data-driven comparison
Spotify Technology SA generates 253% more annual revenue ($17.53B vs $4.97B). SPOT leads profitability with a 15.4% profit margin vs 4.1%. ROKU appears more attractively valued with a PEG of 1.03. SPOT earns a higher WallStSmart Score of 64/100 (C+).
ROKU
Hold44
out of 100
Grade: D
SPOT
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ROKU.
Margin of Safety
-64.4%
Fair Value
$296.31
Current Price
$522.70
$226.39 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Revenue surging 22.4% year-over-year
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
Trading at 8.0x book value
ROE of 7.5% — below average capital efficiency
4.1% margin — thin
Operating margin of 4.3%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 11.8x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : ROKU
The strongest argument for ROKU centers on Debt/Equity, Revenue Growth. Revenue growth of 22.4% demonstrates continued momentum. PEG of 1.03 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 15.4% and operating margin at 15.8%.
Bear Case : ROKU
The primary concerns for ROKU are Price/Book, Return on Equity, Profit Margin. A P/E of 107.8x leaves little room for execution misses. Thin 4.1% margins leave little buffer for downturns.
Bear Case : SPOT
The primary concerns for SPOT are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
ROKU profiles as a growth stock while SPOT is a mature play — different risk/reward profiles.
ROKU carries more volatility with a beta of 2.01 — expect wider price swings.
ROKU is growing revenue faster at 22.4% — sustainability is the question.
SPOT generates stronger free cash flow (845M), providing more financial flexibility.
Bottom Line
SPOT scores higher overall (64/100 vs 44/100), backed by strong 15.4% margins. 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.
Roku Inc
COMMUNICATION SERVICES · ENTERTAINMENT · USA
Roku, Inc. operates a TV streaming platform. The company is headquartered in San Jose, 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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