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GOOG vs. SPOT: Alphabet vs. Spotify Technology Stock Comparison

How do Alphabet (GOOG) and Spotify Technology (SPOT) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Alphabet (GOOG) and Spotify Technology (SPOT) both fall under the Media & Entertainment industry group, but GOOG is classified in Interactive Media & Services while SPOT is classified in Entertainment.

Company profile comparison for Alphabet (GOOG) and Spotify Technology (SPOT)
Profile ItemGOOGSPOT
NameAlphabet Inc.Spotify Technology S.A.
Country/RegionUnited StatesSweden
GICS SectorCommunication ServicesCommunication Services
GICS Industry GroupMedia & EntertainmentMedia & Entertainment
GICS IndustryInteractive Media & ServicesEntertainment
GICS Sub-IndustryInteractive Media & ServicesMovies & Entertainment
Market Capitalization4,256.01 billion USD94.45 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateAugust 19, 2004April 3, 2018
Security TypeCommon StockCommon Stock

Performance

Cumulative Growth

GOOG
SPOT
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Alphabet (GOOG) vs. Spotify Technology (SPOT): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Alphabet (GOOG) and Spotify Technology (SPOT). Returns over one year are annualized.

Performance at a Glance

Performance metrics for Alphabet (GOOG) and Spotify Technology (SPOT)
MetricGOOGSPOT
Total Return (1Y)108.54%-35.07%

Risk

Drawdown

GOOG
SPOT
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Alphabet (GOOG) vs. Spotify Technology (SPOT): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Risk metrics for Alphabet (GOOG) and Spotify Technology (SPOT)
MetricGOOGSPOT
Volatility (1Y, Annualized)29.18%45.52%
Beta (5Y)1.241.56
Avg. Volume (3M)20.80M2.11M

Profitability

ROE (TTM)

Both Alphabet (GOOG) at 38.89% and Spotify Technology (SPOT) at 37.99% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

GOOG

Media & Entertainment industry group

38.89%

GOOG
38.89%
Max
38.89%
Q3
15.58%
Median
6.43%
Q1
-3.97%
Min
-29.59%

SPOT

Media & Entertainment industry group

37.99%

Max
38.89%
SPOT
37.99%
Q3
15.58%
Median
6.43%
Q1
-3.97%
Min
-29.59%
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Alphabet (GOOG) vs. Spotify Technology (SPOT): A comparison of their ROE against the Media & Entertainment industry group benchmark.

Net Margin (TTM)

Alphabet (GOOG) at 37.92% keeps the most of each sales dollar — above its industry’s net margin range — and Spotify Technology (SPOT) at 15.45% also retains a top-quartile share.

GOOG

Media & Entertainment industry group

37.92%

GOOG
37.92%
Max
30.77%
Q3
10.81%
Median
3.55%
Q1
-3.19%
Min
-24.17%

SPOT

Media & Entertainment industry group

15.45%

Max
30.77%
SPOT
15.45%
Q3
10.81%
Median
3.55%
Q1
-3.19%
Min
-24.17%
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Alphabet (GOOG) vs. Spotify Technology (SPOT): A comparison of their net margin against the Media & Entertainment industry group benchmark.

Operating Margin (TTM)

Alphabet (GOOG) at 36.12% operates in the top operating margin quartile, ahead of Spotify Technology (SPOT) at 15.77%, which runs around its industry’s norm.

GOOG

Media & Entertainment industry group

36.12%

Max
41.37%
GOOG
36.12%
Q3
17.06%
Median
7.79%
Q1
-3.39%
Min
-27.39%

SPOT

Media & Entertainment industry group

15.77%

Max
41.37%
Q3
17.06%
SPOT
15.77%
Median
7.79%
Q1
-3.39%
Min
-27.39%
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Alphabet (GOOG) vs. Spotify Technology (SPOT): A comparison of their operating margin against the Media & Entertainment industry group benchmark.

Profitability at a Glance

Profitability metrics for Alphabet (GOOG) and Spotify Technology (SPOT)
MetricGOOGSPOT
ROE (TTM)38.89%37.99%
ROA (TTM)14.64%11.64%
Net Margin (TTM)37.92%15.45%
Operating Margin (TTM)36.12%15.77%
Gross Margin (TTM)60.37%32.32%

Growth

Revenue Growth

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Alphabet (GOOG) vs. Spotify Technology (SPOT): A comparison of their Revenue Growth across different time periods.

Revenue Growth at a Glance

Revenue growth metrics for Alphabet (GOOG) and Spotify Technology (SPOT)
MetricGOOGSPOT
Revenue Growth (YoY)15.09%9.65%
Revenue Growth (3Y CAGR)12.51%13.59%

EPS Growth

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Alphabet (GOOG) vs. Spotify Technology (SPOT): A comparison of their EPS Growth across different time periods.

EPS Growth at a Glance

EPS growth metrics for Alphabet (GOOG) and Spotify Technology (SPOT)
MetricGOOGSPOT
EPS Growth (YoY)34.45%91.09%
EPS Growth (3Y CAGR)33.34%--

Financial Strength

Current Ratio (MRQ)

Both Alphabet (GOOG) at 1.92 and Spotify Technology (SPOT) at 2.06 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

GOOG

Media & Entertainment industry group

1.92

Max
4.37
Q3
2.32
GOOG
1.92
Median
1.39
Q1
0.89
Min
0.31

SPOT

Media & Entertainment industry group

2.06

Max
4.37
Q3
2.32
SPOT
2.06
Median
1.39
Q1
0.89
Min
0.31
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Alphabet (GOOG) vs. Spotify Technology (SPOT): A comparison of their current ratio against the Media & Entertainment industry group benchmark.

Debt / Equity (MRQ)

Spotify Technology (SPOT) at 0.06 keeps leverage in the lower industry quartile, while Alphabet (GOOG) at 0.20 runs a more typical debt-to-equity mix.

GOOG

Media & Entertainment industry group

0.20

Max
2.46
Q3
1.25
Median
0.50
GOOG
0.20
Q1
0.15
Min
0.00

SPOT

Media & Entertainment industry group

0.06

Max
2.46
Q3
1.25
Median
0.50
Q1
0.15
SPOT
0.06
Min
0.00
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Alphabet (GOOG) vs. Spotify Technology (SPOT): A comparison of their debt-to-equity ratio against the Media & Entertainment industry group benchmark.

Financial Strength at a Glance

Financial strength metrics for Alphabet (GOOG) and Spotify Technology (SPOT)
MetricGOOGSPOT
Current Ratio (MRQ)1.922.06
Debt / Equity (MRQ)0.200.06
Net Debt / EBITDA-0.19-2.38

Dividends

Dividend Yield (TTM)

Spotify Technology (SPOT) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Alphabet (GOOG) reports a yield of 0.23%, ranking against industry peers normally.

GOOG

Media & Entertainment industry group

0.23%

Max
2.17%
Q3
1.02%
GOOG
0.23%
Median
0.00%
Q1
0.00%
Min
0.00%

SPOT

Media & Entertainment industry group

0.00%

Max
2.17%
Q3
1.02%
SPOT
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Alphabet (GOOG) vs. Spotify Technology (SPOT): A comparison of their dividend yield against the Media & Entertainment industry group benchmark.

Dividend Payout Ratio (TTM)

Spotify Technology (SPOT) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Alphabet (GOOG) reports a payout of 6.41%, ranking against industry peers normally.

GOOG

Media & Entertainment industry group

6.41%

Max
45.76%
Q3
22.57%
GOOG
6.41%
Median
0.00%
Q1
0.00%
Min
0.00%

SPOT

Media & Entertainment industry group

0.00%

Max
45.76%
Q3
22.57%
SPOT
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Alphabet (GOOG) vs. Spotify Technology (SPOT): A comparison of their payout ratio against the Media & Entertainment industry group benchmark.

Dividends at a Glance

Dividend metrics for Alphabet (GOOG) and Spotify Technology (SPOT)
MetricGOOGSPOT
Dividend Yield (TTM)0.23%0.00%
Dividend Payout Ratio (TTM)6.41%0.00%

Valuation

P/E Ratio (TTM)

Both Alphabet (GOOG) at 26.60 and Spotify Technology (SPOT) at 31.06 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

GOOG

Media & Entertainment industry group

26.60

Max
65.67
Q3
35.82
GOOG
26.60
Median
21.74
Q1
11.07
Min
1.56

SPOT

Media & Entertainment industry group

31.06

Max
65.67
Q3
35.82
SPOT
31.06
Median
21.74
Q1
11.07
Min
1.56
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Alphabet (GOOG) vs. Spotify Technology (SPOT): A comparison of their P/E ratio against the Media & Entertainment industry group benchmark.

P/S Ratio (TTM)

Both look expensive on sales: Spotify Technology (SPOT) at 5.39 sits in the upper P/S ratio quartile, and Alphabet (GOOG) at 10.07 prices even higher, above its industry range.

GOOG

Media & Entertainment industry group

10.07

GOOG
10.07
Max
8.27
Q3
3.98
Median
1.38
Q1
0.59
Min
0.00

SPOT

Media & Entertainment industry group

5.39

Max
8.27
SPOT
5.39
Q3
3.98
Median
1.38
Q1
0.59
Min
0.00
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Alphabet (GOOG) vs. Spotify Technology (SPOT): A comparison of their P/S ratio against the Media & Entertainment industry group benchmark.

P/B Ratio (MRQ)

Both Alphabet (GOOG) at 8.83 and Spotify Technology (SPOT) at 9.62 carry a premium to book value versus peers, sitting in the upper P/B ratio quartile of their industries.

GOOG

Media & Entertainment industry group

8.83

Max
12.69
GOOG
8.83
Q3
5.79
Median
1.82
Q1
0.78
Min
-2.93

SPOT

Media & Entertainment industry group

9.62

Max
12.69
SPOT
9.62
Q3
5.79
Median
1.82
Q1
0.78
Min
-2.93
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Alphabet (GOOG) vs. Spotify Technology (SPOT): A comparison of their P/B ratio against the Media & Entertainment industry group benchmark.

Valuation at a Glance

Valuation metrics for Alphabet (GOOG) and Spotify Technology (SPOT)
MetricGOOGSPOT
P/E Ratio (TTM)26.6031.06
P/S Ratio (TTM)10.075.39
P/B Ratio (MRQ)8.839.62
Free Cash Flow Yield (TTM)0.66%0.75%