WallStSmart

Spotify Technology SA (SPOT)vsZiff Davis Inc (ZD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Spotify Technology SA generates 1160% more annual revenue ($18.11B vs $1.44B). ZD leads profitability with a 44.8% profit margin vs 18.4%. ZD appears more attractively valued with a PEG of 1.53. SPOT earns a higher WallStSmart Score of 64/100 (C+).

SPOT

Buy

64

out of 100

Grade: C+

Growth: 8.0Profit: 8.0Value: 4.0Quality: 8.0
Piotroski: 4/9Altman Z: 2.66

ZD

Buy

61

out of 100

Grade: C+

Growth: 5.3Profit: 6.0Value: 6.3Quality: 7.0
Piotroski: 4/9Altman Z: 1.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SPOTSignificantly Overvalued (-58.4%)

Margin of Safety

-58.4%

Fair Value

$307.58

Current Price

$525.75

$218.17 premium

UndervaluedFair: $307.58Overvalued
ZDUndervalued (+76.9%)

Margin of Safety

+76.9%

Fair Value

$136.24

Current Price

$56.22

$80.02 discount

UndervaluedFair: $136.24Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SPOT4 strengths · Avg: 9.8/10
Return on EquityProfitability
35.6%10/10

Every $100 of equity generates 36 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
$111.52B9/10

Large-cap with strong market position

ZD3 strengths · Avg: 10.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
44.8%10/10

Keeps 45 of every $100 in revenue as profit

EPS GrowthGrowth
2632.0%10/10

Earnings expanding 2632.0% YoY

Areas to Watch

SPOT3 concerns · Avg: 4.0/10
PEG RatioValuation
1.594/10

Expensive relative to growth rate

P/E RatioValuation
29.4x4/10

Moderate valuation

Price/BookValuation
11.0x4/10

Trading at 11.0x book value

ZD4 concerns · Avg: 3.5/10
PEG RatioValuation
1.534/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.644/10

Distress zone — elevated risk

Market CapQuality
$1.90B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
2.6%3/10

ROE of 2.6% — below average capital efficiency

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 18.4% and operating margin at 13.7%. Revenue growth of 13.9% demonstrates continued momentum.

Bull Case : ZD

The strongest argument for ZD centers on Price/Book, Profit Margin, EPS Growth. Profitability is solid with margins at 44.8% and operating margin at 4.2%.

Bear Case : SPOT

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

Bear Case : ZD

The primary concerns for ZD are PEG Ratio, Altman Z-Score, Market Cap.

Key Dynamics to Monitor

SPOT profiles as a mature stock while ZD is a declining play — different risk/reward profiles.

SPOT carries more volatility with a beta of 1.59 — expect wider price swings.

SPOT is growing revenue faster at 13.9% — sustainability is the question.

SPOT generates stronger free cash flow (910M), providing more financial flexibility.

Bottom Line

SPOT scores higher overall (64/100 vs 61/100), backed by strong 18.4% margins and 13.9% revenue growth. ZD offers better value entry with a 76.9% margin of safety. 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.

Spotify Technology SA

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

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

Ziff Davis Inc

COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA

J2 Global, Inc. provides Internet services worldwide. The company is headquartered in Los Angeles, California.

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