Spotify Technology (NYSE:SPOT – Get Free Report) is one of 185 public companies in the “Entertainment” industry, but how does it contrast to its competitors? We will compare Spotify Technology to similar companies based on the strength of its analyst recommendations, valuation, profitability, risk, earnings, dividends and institutional ownership.
Profitability
This table compares Spotify Technology and its competitors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Spotify Technology | 15.74% | 35.64% | 21.23% |
| Spotify Technology Competitors | 9.83% | -32.30% | -2.88% |
Valuation and Earnings
This table compares Spotify Technology and its competitors top-line revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Spotify Technology | $19.44 billion | $2.50 billion | 39.67 |
| Spotify Technology Competitors | $4.05 billion | $67.95 million | 2.60 |
Spotify Technology has higher revenue and earnings than its competitors. Spotify Technology is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Analyst Recommendations
This is a breakdown of recent recommendations for Spotify Technology and its competitors, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Spotify Technology | 1 | 9 | 23 | 0 | 2.67 |
| Spotify Technology Competitors | 1897 | 4558 | 9689 | 257 | 2.51 |
Spotify Technology presently has a consensus price target of $620.07, suggesting a potential upside of 3.64%. As a group, “Entertainment” companies have a potential upside of 18.39%. Given Spotify Technology’s competitors higher possible upside, analysts plainly believe Spotify Technology has less favorable growth aspects than its competitors.
Risk and Volatility
Spotify Technology has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500. Comparatively, Spotify Technology’s competitors have a beta of 1.00, indicating that their average stock price is 0% more volatile than the S&P 500.
Insider and Institutional Ownership
84.1% of Spotify Technology shares are owned by institutional investors. Comparatively, 36.0% of shares of all “Entertainment” companies are owned by institutional investors. 0.4% of Spotify Technology shares are owned by insiders. Comparatively, 24.5% of shares of all “Entertainment” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Spotify Technology beats its competitors on 10 of the 13 factors compared.
Spotify Technology Company Profile
Spotify Technology operates a digital audio streaming platform offering music, podcasts and audiobooks. Listeners can use the service through a free, advertising-supported option or paid subscriptions, with features for discovering, organizing and sharing audio content. Founded in Sweden in 2006 by Daniel Ek and Martin Lorentzon, Spotify launched its streaming service in 2008. The company serves listeners and creators in markets around the world and provides tools and services for artists, podcasters, authors and other content partners.
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