Alphabet (GOOGL) vs. Spotify Technology (SPOT)

Company Profile

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

Historical Performance

Historical Performance at a Glance

Profitability

Both Alphabet (GOOGL) at 38.98% and Spotify Technology (SPOT) at 35.23% rank in the top quartile for Return on Equity (TTM) among industry peers, indicating strong returns on shareholders’ equity.

Alphabet (GOOGL) leads with Net Profit Margin (TTM) of 37.92%, above its industry benchmark range, while Spotify Technology (SPOT) at 15.45% also ranks strongly in the top quartile.

Alphabet (GOOGL) at 32.69% ranks in the top quartile for Operating Profit Margin (TTM), ahead of Spotify Technology (SPOT) at 13.71%, which sits closer to the industry mid-range.

Profitability at a Glance

Financial Strength

Alphabet (GOOGL) at 1.92 keeps Current Ratio (MRQ) within its industry mid-range, while Spotify Technology (SPOT) at 2.06 sits above the industry mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

Spotify Technology (SPOT) at 0.05 maintains Debt-to-Equity Ratio (MRQ) in the lower-leverage quartile of industry peers, ahead of Alphabet (GOOGL) at 0.16, which sits around the industry mid-range.

Both Alphabet (GOOGL) at 16.20 and Spotify Technology (SPOT) at 38.25 post Interest Coverage Ratio (TTM) above their industry benchmark ranges, indicating wide cushions to cover interest expense from operating income or EBIT.

Financial Strength at a Glance

Growth

Revenue Growth

Revenue Growth at a Glance

EPS Growth

EPS Growth at a Glance

Dividend

Spotify Technology (SPOT) pays no dividend (yield 0.00%) — often a deliberate choice to reinvest earnings rather than return cash. Meanwhile Alphabet (GOOGL) reports a yield of 0.22%, ranking against industry peers normally.

Spotify Technology (SPOT) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Alphabet (GOOGL) reports a payout of 6.34%, ranking against industry peers normally.

Dividend at a Glance

Valuation

Both Alphabet (GOOGL) at 29.34 and Spotify Technology (SPOT) at 28.73 post Price-to-Earnings Ratio (TTM) near the typical industry midpoint — neither company stands out strongly from peers on trailing earnings multiple.

Spotify Technology (SPOT) at 4.44 hovers around the typical industry Price-to-Sales Ratio (TTM), while Alphabet (GOOGL) at 11.12 sits above its industry benchmark range — an elevated trailing revenue multiple for GOOGL relative to peers.

Alphabet (GOOGL) at 7.26 sits in the higher-multiple quartile for Price-to-Book Ratio (MRQ), but Spotify Technology (SPOT) at 10.72 is higher still, above its industry benchmark range — both carry elevated book-value multiples relative to peers, with SPOT higher.

Valuation at a Glance