WallStSmart

Sea Ltd (SE)vsSpotify Technology SA (SPOT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sea Ltd generates 33% more annual revenue ($22.94B vs $17.19B). SPOT leads profitability with a 12.9% profit margin vs 6.9%. SE appears more attractively valued with a PEG of 0.61. SE earns a higher WallStSmart Score of 70/100 (B-).

SE

Strong Buy

70

out of 100

Grade: B-

Growth: 10.0Profit: 6.0Value: 8.7Quality: 5.5
Piotroski: 6/9

SPOT

Buy

60

out of 100

Grade: C+

Growth: 8.0Profit: 8.0Value: 8.7Quality: 7.5
Piotroski: 4/9Altman Z: 2.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SEUndervalued (+2.9%)

Margin of Safety

+2.9%

Fair Value

$117.94

Current Price

$84.47

$33.47 discount

UndervaluedFair: $117.94Overvalued
SPOTUndervalued (+13.8%)

Margin of Safety

+13.8%

Fair Value

$565.34

Current Price

$516.72

$48.62 discount

UndervaluedFair: $565.34Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SE5 strengths · Avg: 9.0/10
Revenue GrowthGrowth
38.4%10/10

Revenue surging 38.4% year-over-year

EPS GrowthGrowth
58.5%10/10

Earnings expanding 58.5% YoY

Market CapQuality
$51.84B9/10

Large-cap with strong market position

PEG RatioValuation
0.618/10

Growing faster than its price suggests

Free Cash FlowQuality
$1.04B8/10

Generating 1.0B in free cash flow

SPOT4 strengths · Avg: 9.5/10
Return on EquityProfitability
31.9%10/10

Every $100 of equity generates 32 in profit

EPS GrowthGrowth
213.9%10/10

Earnings expanding 213.9% YoY

Market CapQuality
$108.14B9/10

Large-cap with strong market position

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

Areas to Watch

SE2 concerns · Avg: 3.5/10
P/E RatioValuation
34.8x4/10

Premium valuation, high expectations priced in

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

SPOT3 concerns · Avg: 3.3/10
PEG RatioValuation
2.214/10

Expensive relative to growth rate

Price/BookValuation
11.1x4/10

Trading at 11.1x book value

P/E RatioValuation
43.5x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : SE

The strongest argument for SE centers on Revenue Growth, EPS Growth, Market Cap. Revenue growth of 38.4% 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, Market Cap.

Bear Case : SE

The primary concerns for SE are P/E Ratio, Profit Margin.

Bear Case : SPOT

The primary concerns for SPOT are PEG Ratio, Price/Book, P/E Ratio. A P/E of 43.5x leaves little room for execution misses.

Key Dynamics to Monitor

SE profiles as a hypergrowth stock while SPOT is a value play — different risk/reward profiles.

SPOT carries more volatility with a beta of 1.72 — expect wider price swings.

SE is growing revenue faster at 38.4% — sustainability is the question.

SE generates stronger free cash flow (1.0B), providing more financial flexibility.

Bottom Line

SE scores higher overall (70/100 vs 60/100) and 38.4% revenue growth. Both earn "Strong 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.

Sea Ltd

CONSUMER CYCLICAL · INTERNET RETAIL · USA

Sea Limited is engaged in the digital entertainment, e-commerce and digital financial services businesses in Southeast Asia, Latin America, the rest of Asia and internationally. The company is headquartered in Singapore.

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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