WallStSmart

Spotify Technology SA (SPOT)vsTelephone and Data Systems Inc (TDS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Spotify Technology SA generates 1305% more annual revenue ($17.53B vs $1.25B). SPOT leads profitability with a 15.4% profit margin vs 10.5%. SPOT appears more attractively valued with a PEG of 1.63. SPOT earns a higher WallStSmart Score of 64/100 (C+).

SPOT

Buy

64

out of 100

Grade: C+

Growth: 8.0Profit: 8.5Value: 3.3Quality: 8.0
Piotroski: 4/9Altman Z: 2.66

TDS

Hold

45

out of 100

Grade: D+

Growth: 3.3Profit: 3.5Value: 4.3Quality: 8.0
Piotroski: 4/9Altman Z: 1.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SPOTSignificantly Overvalued (-64.9%)

Margin of Safety

-64.9%

Fair Value

$295.49

Current Price

$496.95

$201.46 premium

UndervaluedFair: $295.49Overvalued

Intrinsic value data unavailable for TDS.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SPOT4 strengths · Avg: 9.8/10
Return on EquityProfitability
33.8%10/10

Every $100 of equity generates 34 in profit

EPS GrowthGrowth
222.4%10/10

Earnings expanding 222.4% YoY

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

Market CapQuality
$99.11B9/10

Large-cap with strong market position

TDS2 strengths · Avg: 9.5/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.259/10

Conservative balance sheet, low leverage

Areas to Watch

SPOT3 concerns · Avg: 4.0/10
PEG RatioValuation
1.634/10

Expensive relative to growth rate

P/E RatioValuation
32.5x4/10

Premium valuation, high expectations priced in

Price/BookValuation
10.4x4/10

Trading at 10.4x book value

TDS4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.594/10

Distress zone — elevated risk

Return on EquityProfitability
2.7%3/10

ROE of 2.7% — below average capital efficiency

PEG RatioValuation
7.792/10

Expensive relative to growth rate

EPS GrowthGrowth
-11.8%2/10

Earnings declined 11.8%

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : TDS

The strongest argument for TDS centers on Price/Book, Debt/Equity.

Bear Case : SPOT

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

Bear Case : TDS

The primary concerns for TDS are Altman Z-Score, Return on Equity, PEG Ratio.

Key Dynamics to Monitor

SPOT profiles as a mature stock while TDS is a value play — different risk/reward profiles.

SPOT carries more volatility with a beta of 1.55 — expect wider price swings.

SPOT is growing revenue faster at 8.2% — sustainability is the question.

SPOT generates stronger free cash flow (845M), providing more financial flexibility.

Bottom Line

SPOT scores higher overall (64/100 vs 45/100), 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.

Spotify Technology SA

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

Spotify Technology SA, provides audio streaming services worldwide. The company is headquartered in Luxembourg, Luxembourg.

Telephone and Data Systems Inc

COMMUNICATION SERVICES · TELECOM SERVICES · USA

Telephone and Data Systems, Inc., a telecommunications company, provides communications services in the United States. The company is headquartered in Chicago, Illinois.

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