Roku Inc (ROKU)vsSpotify Technology SA (SPOT)
ROKU
Roku Inc
$112.62
+0.30%
COMMUNICATION SERVICES · Cap: $16.63B
SPOT
Spotify Technology SA
$443.57
+2.16%
COMMUNICATION SERVICES · Cap: $106.65B
Smart Verdict
WallStSmart Research — data-driven comparison
Spotify Technology SA generates 263% more annual revenue ($17.19B vs $4.74B). SPOT leads profitability with a 12.9% profit margin vs 1.9%. ROKU appears more attractively valued with a PEG of 1.01. SPOT earns a higher WallStSmart Score of 60/100 (C+).
ROKU
Hold42
out of 100
Grade: D
SPOT
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-44.9%
Fair Value
$60.66
Current Price
$112.62
$51.96 premium
Margin of Safety
-47.4%
Fair Value
$330.58
Current Price
$443.57
$112.99 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
16.1% revenue growth
Every $100 of equity generates 32 in profit
Earnings expanding 213.9% YoY
Large-cap with strong market position
Conservative balance sheet, low leverage
Areas to Watch
ROE of 3.4% — below average capital efficiency
1.9% margin — thin
Operating margin of 4.5%
Premium valuation, high expectations priced in
Expensive relative to growth rate
Trading at 9.3x book value
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : ROKU
The strongest argument for ROKU centers on Revenue Growth. Revenue growth of 16.1% demonstrates continued momentum. PEG of 1.01 suggests the stock is reasonably priced for its growth.
Bull Case : SPOT
The strongest argument for SPOT centers on Return on Equity, EPS Growth, Market Cap.
Bear Case : ROKU
The primary concerns for ROKU are Return on Equity, Profit Margin, Operating Margin. A P/E of 190.9x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.
Bear Case : SPOT
The primary concerns for SPOT are PEG Ratio, Price/Book, P/E Ratio. A P/E of 42.2x leaves little room for execution misses.
Key Dynamics to Monitor
ROKU profiles as a growth stock while SPOT is a value play — different risk/reward profiles.
ROKU carries more volatility with a beta of 2.00 — expect wider price swings.
ROKU is growing revenue faster at 16.1% — sustainability is the question.
SPOT generates stronger free cash flow (834M), providing more financial flexibility.
Bottom Line
SPOT scores higher overall (60/100 vs 42/100). 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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