Spotify Technology SA (SPOT)vsWarner Music Group (WMG)
SPOT
Spotify Technology SA
$496.95
+0.68%
COMMUNICATION SERVICES · Cap: $99.11B
WMG
Warner Music Group
$29.93
-0.23%
COMMUNICATION SERVICES · Cap: $14.85B
Smart Verdict
WallStSmart Research — data-driven comparison
Spotify Technology SA generates 146% more annual revenue ($17.53B vs $7.13B). SPOT leads profitability with a 15.4% profit margin vs 6.3%. WMG appears more attractively valued with a PEG of 0.52. WMG earns a higher WallStSmart Score of 70/100 (B).
SPOT
Buy64
out of 100
Grade: C+
WMG
Strong Buy70
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-65.0%
Fair Value
$295.16
Current Price
$496.95
$201.79 premium
Margin of Safety
+41.0%
Fair Value
$50.46
Current Price
$29.93
$20.53 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 34 in profit
Earnings expanding 222.4% YoY
Conservative balance sheet, low leverage
Large-cap with strong market position
Every $100 of equity generates 61 in profit
Earnings expanding 393.1% YoY
Growing faster than its price suggests
16.7% revenue growth
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 10.4x book value
Premium valuation, high expectations priced in
6.3% margin — thin
Weak financial health signals
Trading at 21.1x book value
Comparative Analysis Report
WallStSmart ResearchBull 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 : WMG
The strongest argument for WMG centers on Return on Equity, EPS Growth, PEG Ratio. Revenue growth of 16.7% demonstrates continued momentum. PEG of 0.52 suggests the stock is reasonably priced for its growth.
Bear Case : SPOT
The primary concerns for SPOT are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : WMG
The primary concerns for WMG are P/E Ratio, Profit Margin, Piotroski F-Score. Debt-to-equity of 6.70 is elevated, increasing financial risk.
Key Dynamics to Monitor
SPOT profiles as a mature stock while WMG is a growth play — different risk/reward profiles.
SPOT carries more volatility with a beta of 1.55 — expect wider price swings.
WMG is growing revenue faster at 16.7% — sustainability is the question.
SPOT generates stronger free cash flow (845M), providing more financial flexibility.
Bottom Line
WMG scores higher overall (70/100 vs 64/100) and 16.7% 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.
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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