APP vs. SPOT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at APP and SPOT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
APP’s market capitalization stands at 115.62 billion USD, while SPOT’s is 145.67 billion USD, indicating their market valuations are broadly comparable.
APP’s beta of 2.53 points to significantly higher volatility compared to SPOT (beta: 1.66), suggesting APP has greater potential for both gains and losses relative to market movements.
| Symbol | APP | SPOT |
|---|---|---|
| Company Name | AppLovin Corporation | Spotify Technology S.A. |
| Country | US | LU |
| Sector | Technology | Communication Services |
| Industry | Software - Application | Internet Content & Information |
| CEO | Adam Arash Foroughi | Daniel G. Ek |
| Price | 341.64 USD | 725.05 USD |
| Market Cap | 115.62 billion USD | 145.67 billion USD |
| Beta | 2.53 | 1.66 |
| Exchange | NASDAQ | NYSE |
| IPO Date | April 15, 2021 | April 3, 2018 |
| ADR | No | No |
Historical Performance
This chart compares the performance of APP and SPOT by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
APP
224.68%
Software - Application Industry
- Max
- 59.01%
- Q3
- 17.85%
- Median
- 4.73%
- Q1
- -10.56%
- Min
- -52.94%
APP’s Return on Equity of 224.68% is exceptionally high, placing it well beyond the typical range for the Software - Application industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
SPOT
22.57%
Internet Content & Information Industry
- Max
- 42.68%
- Q3
- 9.10%
- Median
- 3.28%
- Q1
- -14.17%
- Min
- -26.11%
In the upper quartile for the Internet Content & Information industry, SPOT’s Return on Equity of 22.57% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
APP
48.77%
Software - Application Industry
- Max
- 35.07%
- Q3
- 9.72%
- Median
- 0.76%
- Q1
- -8.68%
- Min
- -34.12%
APP’s Return on Invested Capital of 48.77% is exceptionally high, placing it well beyond the typical range for the Software - Application industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
SPOT
15.89%
Internet Content & Information Industry
- Max
- 31.34%
- Q3
- 14.95%
- Median
- 3.03%
- Q1
- -6.25%
- Min
- -25.52%
In the upper quartile for the Internet Content & Information industry, SPOT’s Return on Invested Capital of 15.89% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
APP
37.39%
Software - Application Industry
- Max
- 48.14%
- Q3
- 16.07%
- Median
- 1.83%
- Q1
- -9.60%
- Min
- -45.64%
A Net Profit Margin of 37.39% places APP in the upper quartile for the Software - Application industry, signifying strong profitability and more effective cost management than most of its peers.
SPOT
7.19%
Internet Content & Information Industry
- Max
- 39.11%
- Q3
- 15.31%
- Median
- 4.00%
- Q1
- -6.97%
- Min
- -36.95%
SPOT’s Net Profit Margin of 7.19% is aligned with the median group of its peers in the Internet Content & Information industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
APP
42.86%
Software - Application Industry
- Max
- 51.67%
- Q3
- 15.35%
- Median
- 1.79%
- Q1
- -12.42%
- Min
- -45.17%
An Operating Profit Margin of 42.86% places APP in the upper quartile for the Software - Application industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
SPOT
10.51%
Internet Content & Information Industry
- Max
- 42.92%
- Q3
- 15.51%
- Median
- 2.63%
- Q1
- -6.98%
- Min
- -18.41%
SPOT’s Operating Profit Margin of 10.51% is around the midpoint for the Internet Content & Information industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | APP | SPOT |
|---|---|---|
| Return on Equity (TTM) | 224.68% | 22.57% |
| Return on Assets (TTM) | 33.64% | 9.19% |
| Return on Invested Capital (TTM) | 48.77% | 15.89% |
| Net Profit Margin (TTM) | 37.39% | 7.19% |
| Operating Profit Margin (TTM) | 42.86% | 10.51% |
| Gross Profit Margin (TTM) | 77.40% | 30.97% |
Financial Strength
Current Ratio
APP
1.68
Software - Application Industry
- Max
- 5.09
- Q3
- 2.84
- Median
- 1.70
- Q1
- 1.12
- Min
- 0.04
APP’s Current Ratio of 1.68 aligns with the median group of the Software - Application industry, indicating that its short-term liquidity is in line with its sector peers.
SPOT
1.48
Internet Content & Information Industry
- Max
- 7.37
- Q3
- 3.97
- Median
- 2.42
- Q1
- 1.67
- Min
- 0.33
SPOT’s Current Ratio of 1.48 falls into the lower quartile for the Internet Content & Information industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
APP
6.45
Software - Application Industry
- Max
- 1.85
- Q3
- 0.77
- Median
- 0.18
- Q1
- 0.05
- Min
- 0.00
With a Debt-to-Equity Ratio of 6.45, APP operates with exceptionally high leverage compared to the Software - Application industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
SPOT
0.34
Internet Content & Information Industry
- Max
- 0.55
- Q3
- 0.49
- Median
- 0.14
- Q1
- 0.03
- Min
- 0.00
SPOT’s Debt-to-Equity Ratio of 0.34 is typical for the Internet Content & Information industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
APP
7.41
Software - Application Industry
- Max
- 39.23
- Q3
- 8.55
- Median
- 1.48
- Q1
- -14.59
- Min
- -39.97
APP’s Interest Coverage Ratio of 7.41 is positioned comfortably within the norm for the Software - Application industry, indicating a standard and healthy capacity to cover its interest payments.
SPOT
19.61
Internet Content & Information Industry
- Max
- 26.56
- Q3
- 12.92
- Median
- 3.11
- Q1
- -5.03
- Min
- -16.11
SPOT’s Interest Coverage Ratio of 19.61 is in the upper quartile for the Internet Content & Information industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | APP | SPOT |
|---|---|---|
| Current Ratio (TTM) | 1.68 | 1.48 |
| Quick Ratio (TTM) | 1.68 | 1.48 |
| Debt-to-Equity Ratio (TTM) | 6.45 | 0.34 |
| Debt-to-Asset Ratio (TTM) | 0.65 | 0.17 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.20 | -1.80 |
| Interest Coverage Ratio (TTM) | 7.41 | 19.61 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for APP and SPOT. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
APP
0.00%
Software - Application Industry
- Max
- 3.66%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
APP currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
SPOT
0.00%
Internet Content & Information Industry
- Max
- 8.40%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
SPOT currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio
APP
0.00%
Software - Application Industry
- Max
- 81.09%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
APP has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
SPOT
0.00%
Internet Content & Information Industry
- Max
- 112.27%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
SPOT has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | APP | SPOT |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio
APP
60.47
Software - Application Industry
- Max
- 194.31
- Q3
- 98.56
- Median
- 51.87
- Q1
- 22.76
- Min
- 1.02
APP’s P/E Ratio of 60.47 is within the middle range for the Software - Application industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
SPOT
107.96
Internet Content & Information Industry
- Max
- 56.51
- Q3
- 39.89
- Median
- 18.31
- Q1
- 10.09
- Min
- 0.08
At 107.96, SPOT’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Internet Content & Information industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
APP
2.46
Software - Application Industry
- Max
- 15.44
- Q3
- 6.57
- Median
- 2.78
- Q1
- 0.55
- Min
- 0.00
APP’s Forward PEG Ratio of 2.46 is within the middle range of its peers in the Software - Application industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
SPOT
5.98
Internet Content & Information Industry
- Max
- 4.26
- Q3
- 2.09
- Median
- 0.83
- Q1
- 0.47
- Min
- 0.01
SPOT’s Forward PEG Ratio of 5.98 is exceptionally high for the Internet Content & Information industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
Price-to-Sales Ratio
APP
22.51
Software - Application Industry
- Max
- 23.49
- Q3
- 11.14
- Median
- 5.62
- Q1
- 2.84
- Min
- 0.33
APP’s P/S Ratio of 22.51 is in the upper echelon for the Software - Application industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
SPOT
7.62
Internet Content & Information Industry
- Max
- 10.83
- Q3
- 6.47
- Median
- 2.35
- Q1
- 0.97
- Min
- 0.66
SPOT’s P/S Ratio of 7.62 is in the upper echelon for the Internet Content & Information industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
APP
201.77
Software - Application Industry
- Max
- 21.03
- Q3
- 10.49
- Median
- 6.36
- Q1
- 2.89
- Min
- 0.12
The P/B Ratio is often not a primary valuation metric for the Software - Application industry.
SPOT
20.15
Internet Content & Information Industry
- Max
- 12.17
- Q3
- 6.35
- Median
- 2.86
- Q1
- 0.91
- Min
- 0.02
The P/B Ratio is often not a primary valuation metric for the Internet Content & Information industry.
Valuation at a Glance
| Symbol | APP | SPOT |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 60.47 | 107.96 |
| Forward PEG Ratio (TTM) | 2.46 | 5.98 |
| Price-to-Sales Ratio (P/S, TTM) | 22.51 | 7.62 |
| Price-to-Book Ratio (P/B, TTM) | 201.77 | 20.15 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 45.64 | 47.16 |
| EV-to-EBITDA (TTM) | 45.16 | 74.51 |
| EV-to-Sales (TTM) | 23.13 | 7.44 |