Alphabet (GOOGL) vs. Spotify Technology (SPOT)
This page compares Alphabet (GOOGL) with Spotify Technology (SPOT) using performance and risk, profitability, financial strength, growth, dividends, and valuation metrics.
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.
| Symbol | GOOGL | SPOT |
|---|---|---|
| Name | Alphabet Inc. | Spotify Technology S.A. |
| Country/Region | United States | Sweden |
| GICS Sector | Communication Services | Communication Services |
| GICS Industry Group | Media & Entertainment | Media & Entertainment |
| GICS Industry | Interactive Media & Services | Entertainment |
| GICS Sub-Industry | Interactive Media & Services | Movies & Entertainment |
| Market Capitalization | 4,442.13 billion USD | 102.03 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | August 19, 2004 | April 3, 2018 |
| Security Type | Common Stock | Common Stock |
Valuation
Price-to-Earnings Ratio (TTM)
Both Alphabet (GOOGL) at 27.78 and Spotify Technology (SPOT) at 33.44 post Price-to-Earnings Ratio (TTM) near the typical industry midpoint — neither company stands out strongly from peers on trailing earnings multiple.
GOOGL
Media & Entertainment industry group
27.78
- Max
- 75.72
- Q3
- 38.32
- Median
- 22.51
- Q1
- 11.95
- Min
- 1.69
SPOT
Media & Entertainment industry group
33.44
- Max
- 75.72
- Q3
- 38.32
- Median
- 22.51
- Q1
- 11.95
- Min
- 1.69
Price-to-Sales Ratio (TTM)
Both look expensive on sales: Spotify Technology (SPOT) at 5.82 sits in the upper Price-to-Sales Ratio (TTM) quartile, and Alphabet (GOOGL) at 10.51 prices even higher, above its industry range.
GOOGL
Media & Entertainment industry group
10.51
- Max
- 7.72
- Q3
- 3.59
- Median
- 1.43
- Q1
- 0.52
- Min
- 0.00
SPOT
Media & Entertainment industry group
5.82
- Max
- 7.72
- Q3
- 3.59
- Median
- 1.43
- Q1
- 0.52
- Min
- 0.00
Price-to-Book Ratio (MRQ)
Both Alphabet (GOOGL) at 9.22 and Spotify Technology (SPOT) at 10.39 carry a premium to book value versus peers, sitting in the upper Price-to-Book Ratio (MRQ) quartile of their industries.
GOOGL
Media & Entertainment industry group
9.22
- Max
- 11.02
- Q3
- 4.89
- Median
- 1.88
- Q1
- 0.77
- Min
- -2.82
SPOT
Media & Entertainment industry group
10.39
- Max
- 11.02
- Q3
- 4.89
- Median
- 1.88
- Q1
- 0.77
- Min
- -2.82
Valuation at a Glance
| Symbol | GOOGL | SPOT |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 27.78 | 33.44 |
| Price-to-Sales Ratio (TTM) | 10.51 | 5.82 |
| Price-to-Book Ratio (MRQ) | 9.22 | 10.39 |
| Free Cash Flow Yield | 0.63% | 0.69% |
Profitability
Return on Equity (TTM)
Both Alphabet (GOOGL) at 38.89% and Spotify Technology (SPOT) at 37.99% rank in the top quartile for Return on Equity (TTM) among industry peers, indicating strong returns on shareholders’ equity.
GOOGL
Media & Entertainment industry group
38.89%
- Max
- 38.89%
- Q3
- 15.58%
- Median
- 6.43%
- Q1
- -4.34%
- Min
- -29.59%
SPOT
Media & Entertainment industry group
37.99%
- Max
- 38.89%
- Q3
- 15.58%
- Median
- 6.43%
- Q1
- -4.34%
- Min
- -29.59%
Net Profit Margin (TTM)
Alphabet (GOOGL) at 37.92% keeps the most of each sales dollar — above its industry’s Net Profit Margin (TTM) range — and Spotify Technology (SPOT) at 15.45% also retains a top-quartile share.
GOOGL
Media & Entertainment industry group
37.92%
- Max
- 30.77%
- Q3
- 10.41%
- Median
- 3.55%
- Q1
- -3.19%
- Min
- -20.69%
SPOT
Media & Entertainment industry group
15.45%
- Max
- 30.77%
- Q3
- 10.41%
- Median
- 3.55%
- Q1
- -3.19%
- Min
- -20.69%
Operating Profit Margin (TTM)
Alphabet (GOOGL) at 36.12% operates in the top Operating Profit Margin (TTM) quartile, ahead of Spotify Technology (SPOT) at 15.77%, which runs around its industry’s norm.
GOOGL
Media & Entertainment industry group
36.12%
- Max
- 41.37%
- Q3
- 16.41%
- Median
- 7.79%
- Q1
- -3.39%
- Min
- -26.23%
SPOT
Media & Entertainment industry group
15.77%
- Max
- 41.37%
- Q3
- 16.41%
- Median
- 7.79%
- Q1
- -3.39%
- Min
- -26.23%
Profitability at a Glance
| Symbol | GOOGL | SPOT |
|---|---|---|
| Return on Equity (TTM) | 38.89% | 37.99% |
| Return on Assets (TTM) | 14.64% | 11.64% |
| Net Profit Margin (TTM) | 37.92% | 15.45% |
| Operating Profit Margin (TTM) | 36.12% | 15.77% |
| Gross Profit Margin (TTM) | 60.37% | 32.32% |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | GOOGL | SPOT |
|---|---|---|
| 1-Year Revenue Growth | 15.09% | 9.65% |
| 3-Year Revenue CAGR | 12.51% | 13.59% |
EPS Growth
EPS Growth at a Glance
| Symbol | GOOGL | SPOT |
|---|---|---|
| 1-Year EPS Growth | 34.45% | 91.09% |
| 3-Year EPS CAGR | 33.34% | -- |
Financial Strength
Current Ratio (MRQ)
Both Alphabet (GOOGL) at 1.92 and Spotify Technology (SPOT) at 2.06 carry Current Ratio (MRQ) within their industry mid-ranges, suggesting balanced short-term liquidity relative to peers.
GOOGL
Media & Entertainment industry group
1.92
- Max
- 3.53
- Q3
- 2.15
- Median
- 1.39
- Q1
- 0.89
- Min
- 0.31
SPOT
Media & Entertainment industry group
2.06
- Max
- 3.53
- Q3
- 2.15
- Median
- 1.39
- Q1
- 0.89
- Min
- 0.31
Debt-to-Equity Ratio (MRQ)
Spotify Technology (SPOT) at 0.06 maintains Debt-to-Equity Ratio (MRQ) in the lower-leverage quartile of industry peers, ahead of Alphabet (GOOGL) at 0.20, which sits around the industry mid-range.
GOOGL
Media & Entertainment industry group
0.20
- Max
- 3.24
- Q3
- 1.40
- Median
- 0.54
- Q1
- 0.17
- Min
- 0.00
SPOT
Media & Entertainment industry group
0.06
- Max
- 3.24
- Q3
- 1.40
- Median
- 0.54
- Q1
- 0.17
- Min
- 0.00
Financial Strength at a Glance
| Symbol | GOOGL | SPOT |
|---|---|---|
| Current Ratio (MRQ) | 1.92 | 2.06 |
| Debt-to-Equity Ratio (MRQ) | 0.20 | 0.06 |
| Net Debt / EBITDA | -0.19 | -2.38 |
Dividends
Dividend Yield (TTM)
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 0.24%, ranking against industry peers normally.
GOOGL
Media & Entertainment industry group
0.24%
- Max
- 2.65%
- Q3
- 1.14%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
SPOT
Media & Entertainment industry group
0.00%
- Max
- 2.65%
- Q3
- 1.14%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
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 (GOOGL) reports a payout of 6.41%, ranking against industry peers normally.
GOOGL
Media & Entertainment industry group
6.41%
- Max
- 49.56%
- Q3
- 22.57%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
SPOT
Media & Entertainment industry group
0.00%
- Max
- 49.56%
- Q3
- 22.57%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividends at a Glance
| Symbol | GOOGL | SPOT |
|---|---|---|
| Dividend Yield (TTM) | 0.24% | 0.00% |
| Dividend Payout Ratio (TTM) | 6.41% | 0.00% |
Performance & Risk
Performance & Risk at a Glance
| Symbol | GOOGL | SPOT |
|---|---|---|
| 1-Year Return | 110.03% | -29.36% |
| 1-Year Volatility | 29.36% | 45.36% |
| Beta | 1.24 | 1.54 |
| 3-Month Avg. Volume | 29.15M | 2.09M |