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GOOG vs. SPOT: Alphabet vs. Spotify Stock Comparison

How do Alphabet (GOOG) and Spotify (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 (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 (SPOT)
Profile ItemGOOGSPOT
NameAlphabet Inc. Class C Common StockSpotify 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 Capitalization3,880.31 billion USD120.11 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateAugust 19, 2004April 3, 2018
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

GOOG
SPOT
GSPC
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Alphabet (GOOG) vs. Spotify (SPOT), with S&P 500 (GSPC) for reference: 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 (SPOT). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Alphabet (GOOG) and Spotify (SPOT). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Alphabet (GOOG) and Spotify (SPOT)
MetricGOOGSPOT
Total Return (1Y)25.37%-13.30%
Total Return (3Y, Annualized)32.43%55.76%
Total Return (5Y, Annualized)18.23%18.22%

Risk Profile

Drawdown History

GOOG
SPOT
GSPC
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Alphabet (GOOG) vs. Spotify (SPOT), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Alphabet (GOOG) and Spotify (SPOT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Alphabet (GOOG) and Spotify (SPOT)
MetricGOOGSPOT
Volatility (1Y, Annualized)31.18%46.46%
Beta (5Y)1.191.51
Max Drawdown (5Y)-44.60%-76.39%
Avg. Volume (3M)17.53M1.74M

Risk-Adjusted Performance

Risk-Return Positioning

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GOOG and SPOT are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Alphabet (GOOG) and Spotify (SPOT)
MetricGOOGSPOT
Sharpe Ratio (1Y)0.67-0.38
Sortino Ratio (1Y)1.07-0.57

Profitability

ROE (TTM)

Both companies show strong equity returns, but Alphabet (GOOG) at 48.68% is the standout with ROE above its industry range; Spotify (SPOT) at 35.81% also sits in the top quartile.

GOOG

Media & Entertainment industry group

48.68%

GOOG
48.68%
Max
45.82%
Q3
17.46%
Median
7.50%
Q1
-3.05%
Min
-26.31%

SPOT

Media & Entertainment industry group

35.81%

Max
45.82%
SPOT
35.81%
Q3
17.46%
Median
7.50%
Q1
-3.05%
Min
-26.31%
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Alphabet (GOOG) vs. Spotify (SPOT): A comparison of their ROE against the Media & Entertainment industry group benchmark.

Net Margin (TTM)

Alphabet (GOOG) at 54.77% keeps the most of each sales dollar — above its industry’s net margin range — and Spotify (SPOT) at 15.73% also retains a top-quartile share.

GOOG

Media & Entertainment industry group

54.77%

GOOG
54.77%
Max
32.91%
Q3
11.58%
Median
5.49%
Q1
-3.17%
Min
-25.14%

SPOT

Media & Entertainment industry group

15.73%

Max
32.91%
SPOT
15.73%
Q3
11.58%
Median
5.49%
Q1
-3.17%
Min
-25.14%
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Alphabet (GOOG) vs. Spotify (SPOT): A comparison of their net margin against the Media & Entertainment industry group benchmark.

Operating Margin (TTM)

Alphabet (GOOG) at 34.03% operates in the top operating margin quartile, ahead of Spotify (SPOT) at 13.52%, which runs around its industry’s norm.

GOOG

Media & Entertainment industry group

34.03%

Max
40.16%
GOOG
34.03%
Q3
18.63%
Median
10.04%
Q1
0.29%
Min
-19.55%

SPOT

Media & Entertainment industry group

13.52%

Max
40.16%
Q3
18.63%
SPOT
13.52%
Median
10.04%
Q1
0.29%
Min
-19.55%
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Alphabet (GOOG) vs. Spotify (SPOT): A comparison of their operating margin against the Media & Entertainment industry group benchmark.

Profitability Metrics

Profitability metrics for Alphabet (GOOG) and Spotify (SPOT)
MetricGOOGSPOT
ROE (TTM)48.68%35.81%
ROA (TTM)12.96%11.82%
Net Margin (TTM)54.77%15.73%
Operating Margin (TTM)34.03%13.52%
Gross Margin (TTM)60.90%33.12%

Growth

Revenue Growth

Alphabet (GOOG) at 15.09% sits in the top revenue growth quartile, while Spotify (SPOT) at 9.65% is closer to the peer norm — faster top-line expansion for GOOG.

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

EPS Growth

Spotify (SPOT) at 91.09% sits in the top EPS growth quartile, while Alphabet (GOOG) at 34.45% is closer to the peer norm — faster per-share earnings growth for SPOT.

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

Growth Metrics

Growth metrics for Alphabet (GOOG) and Spotify (SPOT)
MetricGOOGSPOT
Revenue Growth (YoY)15.09%9.65%
Revenue Growth (3Y CAGR)12.51%13.59%
EPS Growth (YoY)34.45%91.09%
EPS Growth (3Y CAGR)33.34%--

Financial Strength

Current Ratio (MRQ)

Spotify (SPOT) at 2.13 keeps current ratio within its industry’s typical mid-range, while Alphabet (GOOG) at 2.72 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

GOOG

Media & Entertainment industry group

2.72

Max
4.50
GOOG
2.72
Q3
2.42
Median
1.53
Q1
0.90
Min
0.25

SPOT

Media & Entertainment industry group

2.13

Max
4.50
Q3
2.42
SPOT
2.13
Median
1.53
Q1
0.90
Min
0.25
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Alphabet (GOOG) vs. Spotify (SPOT): A comparison of their current ratio against the Media & Entertainment industry group benchmark.

Debt / Equity (MRQ)

Spotify (SPOT) at 0.05 keeps leverage in the lower industry quartile, while Alphabet (GOOG) at 0.19 runs a more typical debt-to-equity mix.

GOOG

Media & Entertainment industry group

0.19

Max
3.84
Q3
1.71
Median
0.60
GOOG
0.19
Q1
0.17
Min
0.00

SPOT

Media & Entertainment industry group

0.05

Max
3.84
Q3
1.71
Median
0.60
Q1
0.17
SPOT
0.05
Min
0.00
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Alphabet (GOOG) vs. Spotify (SPOT): A comparison of their debt-to-equity ratio against the Media & Entertainment industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Alphabet (GOOG) and Spotify (SPOT)
MetricGOOGSPOT
Current Ratio (MRQ)2.722.13
Debt / Equity (MRQ)0.190.05
Net Debt / EBITDA-0.70-2.40

Dividends

Dividend Yield (TTM)

Spotify (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 0.27%, ranking against industry peers normally.

GOOG

Media & Entertainment industry group

0.27%

Max
1.70%
Q3
0.69%
GOOG
0.27%
Median
0.00%
Q1
0.00%
Min
0.00%

SPOT

Media & Entertainment industry group

0.00%

Max
1.70%
Q3
0.69%
SPOT
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Alphabet (GOOG) vs. Spotify (SPOT): A comparison of their dividend yield against the Media & Entertainment industry group benchmark.

Dividend Payout Ratio (TTM)

Spotify (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 4.26%, ranking against industry peers normally.

GOOG

Media & Entertainment industry group

4.26%

Max
60.80%
Q3
28.16%
GOOG
4.26%
Median
0.00%
Q1
0.00%
Min
0.00%

SPOT

Media & Entertainment industry group

0.00%

Max
60.80%
Q3
28.16%
SPOT
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Alphabet (GOOG) vs. Spotify (SPOT): A comparison of their payout ratio against the Media & Entertainment industry group benchmark.

Dividend Metrics

Dividend metrics for Alphabet (GOOG) and Spotify (SPOT)
MetricGOOGSPOT
Dividend Yield (TTM)0.27%0.00%
Dividend Payout Ratio (TTM)4.26%0.00%

Valuation

P/E Ratio (TTM)

Both Alphabet (GOOG) at 15.92 and Spotify (SPOT) at 35.60 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

15.92

Max
73.62
Q3
36.70
Median
19.19
GOOG
15.92
Q1
10.72
Min
1.50

SPOT

Media & Entertainment industry group

35.60

Max
73.62
Q3
36.70
SPOT
35.60
Median
19.19
Q1
10.72
Min
1.50
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Alphabet (GOOG) vs. Spotify (SPOT): A comparison of their P/E ratio against the Media & Entertainment industry group benchmark.

P/S Ratio (TTM)

Both Alphabet (GOOG) at 8.70 and Spotify (SPOT) at 6.39 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.

GOOG

Media & Entertainment industry group

8.70

Max
8.78
GOOG
8.70
Q3
3.91
Median
1.61
Q1
0.65
Min
0.00

SPOT

Media & Entertainment industry group

6.39

Max
8.78
SPOT
6.39
Q3
3.91
Median
1.61
Q1
0.65
Min
0.00
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Alphabet (GOOG) vs. Spotify (SPOT): A comparison of their P/S ratio against the Media & Entertainment industry group benchmark.

P/B Ratio (MRQ)

Both Alphabet (GOOG) at 6.23 and Spotify (SPOT) at 12.23 carry a premium to book value versus peers, sitting in the upper P/B ratio quartile of their industries.

GOOG

Media & Entertainment industry group

6.23

Max
12.23
GOOG
6.23
Q3
5.66
Median
1.94
Q1
0.76
Min
-1.97

SPOT

Media & Entertainment industry group

12.23

SPOT
12.23
Max
12.23
Q3
5.66
Median
1.94
Q1
0.76
Min
-1.97
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Alphabet (GOOG) vs. Spotify (SPOT): A comparison of their P/B ratio against the Media & Entertainment industry group benchmark.

Valuation Metrics

Valuation metrics for Alphabet (GOOG) and Spotify (SPOT)
MetricGOOGSPOT
P/E Ratio (TTM)15.9235.60
P/S Ratio (TTM)8.706.39
P/B Ratio (MRQ)6.2312.23
Free Cash Flow Yield (TTM)0.58%1.19%