WallStSmart

Roku Inc (ROKU)vsSpotify Technology SA (SPOT)

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Smart Verdict

WallStSmart Research — data-driven comparison

Spotify Technology SA generates 261% more annual revenue ($18.81B vs $5.21B). SPOT leads profitability with a 15.7% profit margin vs 6.8%. ROKU appears more attractively valued with a PEG of 0.60. ROKU earns a higher WallStSmart Score of 63/100 (C+).

ROKU

Buy

63

out of 100

Grade: C+

Growth: 8.7Profit: 5.5Value: 5.0Quality: 8.0
Piotroski: 4/9Altman Z: 2.15

SPOT

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 8.0Value: 4.0Quality: 8.0
Piotroski: 4/9Altman Z: 2.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ROKU.

SPOTSignificantly Overvalued (-51.8%)

Margin of Safety

-51.8%

Fair Value

$321.01

Current Price

$557.24

$236.23 premium

UndervaluedFair: $321.01Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ROKU4 strengths · Avg: 8.8/10
EPS GrowthGrowth
1443.0%10/10

Earnings expanding 1443.0% YoY

Debt/EquityHealth
0.179/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.608/10

Growing faster than its price suggests

Revenue GrowthGrowth
21.9%8/10

Revenue surging 21.9% year-over-year

SPOT4 strengths · Avg: 9.3/10
Return on EquityProfitability
30.6%10/10

Every $100 of equity generates 31 in profit

Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Market CapQuality
$114.19B9/10

Large-cap with strong market position

Revenue GrowthGrowth
16.3%8/10

16.3% revenue growth

Areas to Watch

ROKU3 concerns · Avg: 3.0/10
Price/BookValuation
8.2x4/10

Trading at 8.2x book value

Profit MarginProfitability
6.8%3/10

6.8% margin — thin

P/E RatioValuation
66.1x2/10

Premium valuation, high expectations priced in

SPOT3 concerns · Avg: 3.3/10
P/E RatioValuation
33.9x4/10

Premium valuation, high expectations priced in

Price/BookValuation
11.7x4/10

Trading at 11.7x book value

EPS GrowthGrowth
-24.5%2/10

Earnings declined 24.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : ROKU

The strongest argument for ROKU centers on EPS Growth, Debt/Equity, PEG Ratio. Revenue growth of 21.9% demonstrates continued momentum. PEG of 0.60 suggests the stock is reasonably priced for its growth.

Bull Case : SPOT

The strongest argument for SPOT centers on Return on Equity, Debt/Equity, Market Cap. Profitability is solid with margins at 15.7% and operating margin at 13.5%. Revenue growth of 16.3% demonstrates continued momentum.

Bear Case : ROKU

The primary concerns for ROKU are Price/Book, Profit Margin, P/E Ratio. A P/E of 66.1x leaves little room for execution misses.

Bear Case : SPOT

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

Key Dynamics to Monitor

ROKU carries more volatility with a beta of 2.05 — expect wider price swings.

ROKU is growing revenue faster at 21.9% — sustainability is the question.

SPOT generates stronger free cash flow (792M), providing more financial flexibility.

Monitor ENTERTAINMENT industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ROKU scores higher overall (63/100 vs 56/100) and 21.9% revenue growth. Both earn "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.

Roku Inc

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Roku, Inc. operates a TV streaming platform. The company is headquartered in San Jose, California.

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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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