Roku Inc (ROKU)vsSpotify Technology SA (SPOT)
ROKU
Roku Inc
$154.93
+0.53%
COMMUNICATION SERVICES · Cap: $23.07B
SPOT
Spotify Technology SA
$525.75
+0.77%
COMMUNICATION SERVICES · Cap: $111.52B
Smart Verdict
WallStSmart Research — data-driven comparison
Spotify Technology SA generates 248% more annual revenue ($18.11B vs $5.21B). SPOT leads profitability with a 18.4% profit margin vs 6.8%. ROKU appears more attractively valued with a PEG of 0.61. SPOT earns a higher WallStSmart Score of 64/100 (C+).
ROKU
Buy63
out of 100
Grade: C+
SPOT
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ROKU.
Margin of Safety
-58.4%
Fair Value
$307.58
Current Price
$525.75
$218.17 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 1443.0% YoY
Conservative balance sheet, low leverage
Growing faster than its price suggests
Revenue surging 21.9% year-over-year
Every $100 of equity generates 36 in profit
Earnings expanding 222.4% YoY
Conservative balance sheet, low leverage
Large-cap with strong market position
Areas to Watch
Trading at 8.1x book value
6.8% margin — thin
Premium valuation, high expectations priced in
Expensive relative to growth rate
Moderate valuation
Trading at 11.0x book value
Comparative Analysis Report
WallStSmart ResearchBull 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 0.61 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 : ROKU
The primary concerns for ROKU are Price/Book, Profit Margin, P/E Ratio. A P/E of 65.8x leaves little room for execution misses.
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 2.05 — expect wider price swings.
ROKU is growing revenue faster at 21.9% — sustainability is the question.
SPOT generates stronger free cash flow (910M), providing more financial flexibility.
Bottom Line
SPOT scores higher overall (64/100 vs 63/100), backed by strong 18.4% margins and 13.9% 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.
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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