Seek Returns logo

NWSA vs. SPOT: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at NWSA and SPOT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolNWSASPOT
Company NameNews CorporationSpotify Technology S.A.
CountryUnited StatesLuxembourg
GICS SectorCommunication ServicesCommunication Services
GICS IndustryMediaEntertainment
Market Capitalization17.59 billion USD144.82 billion USD
ExchangeNasdaqGSNYSE
Listing DateJune 19, 2013April 3, 2018
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of NWSA 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.

NWSA vs. SPOT: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolNWSASPOT
5-Day Price Return-0.64%0.76%
13-Week Price Return4.52%5.89%
26-Week Price Return0.34%8.56%
52-Week Price Return6.43%104.18%
Month-to-Date Return0.99%12.33%
Year-to-Date Return7.52%57.31%
10-Day Avg. Volume3.82M1.77M
3-Month Avg. Volume3.23M2.22M
3-Month Volatility15.94%44.62%
Beta1.201.69

Profitability

Return on Equity (TTM)

NWSA

14.14%

Media Industry

Max
34.77%
Q3
16.01%
Median
10.70%
Q1
2.80%
Min
-2.36%

NWSA’s Return on Equity of 14.14% is on par with the norm for the Media industry, indicating its profitability relative to shareholder equity is typical for the sector.

SPOT

14.00%

Entertainment Industry

Max
42.50%
Q3
22.75%
Median
12.88%
Q1
7.15%
Min
-6.84%

SPOT’s Return on Equity of 14.00% is on par with the norm for the Entertainment industry, indicating its profitability relative to shareholder equity is typical for the sector.

NWSA vs. SPOT: A comparison of their Return on Equity (TTM) against their respective Media and Entertainment industry benchmarks.

Net Profit Margin (TTM)

NWSA

13.21%

Media Industry

Max
16.04%
Q3
10.15%
Median
5.18%
Q1
2.39%
Min
-3.66%

A Net Profit Margin of 13.21% places NWSA in the upper quartile for the Media industry, signifying strong profitability and more effective cost management than most of its peers.

SPOT

4.85%

Entertainment Industry

Max
45.25%
Q3
23.93%
Median
14.60%
Q1
4.89%
Min
-22.94%

Falling into the lower quartile for the Entertainment industry, SPOT’s Net Profit Margin of 4.85% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

NWSA vs. SPOT: A comparison of their Net Profit Margin (TTM) against their respective Media and Entertainment industry benchmarks.

Operating Profit Margin (TTM)

NWSA

10.27%

Media Industry

Max
24.65%
Q3
13.68%
Median
8.96%
Q1
4.53%
Min
-8.09%

NWSA’s Operating Profit Margin of 10.27% is around the midpoint for the Media industry, indicating that its efficiency in managing core business operations is typical for the sector.

SPOT

11.11%

Entertainment Industry

Max
46.83%
Q3
28.87%
Median
15.26%
Q1
8.95%
Min
-5.53%

SPOT’s Operating Profit Margin of 11.11% is around the midpoint for the Entertainment industry, indicating that its efficiency in managing core business operations is typical for the sector.

NWSA vs. SPOT: A comparison of their Operating Profit Margin (TTM) against their respective Media and Entertainment industry benchmarks.

Profitability at a Glance

SymbolNWSASPOT
Return on Equity (TTM)14.14%14.00%
Return on Assets (TTM)7.24%6.62%
Net Profit Margin (TTM)13.21%4.85%
Operating Profit Margin (TTM)10.27%11.11%
Gross Profit Margin (TTM)54.70%31.63%

Financial Strength

Current Ratio (MRQ)

NWSA

1.84

Media Industry

Max
2.97
Q3
1.79
Median
1.39
Q1
0.92
Min
0.24

NWSA’s Current Ratio of 1.84 is in the upper quartile for the Media industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

SPOT

1.47

Entertainment Industry

Max
6.80
Q3
3.77
Median
1.87
Q1
0.86
Min
0.39

SPOT’s Current Ratio of 1.47 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.

NWSA vs. SPOT: A comparison of their Current Ratio (MRQ) against their respective Media and Entertainment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

NWSA

0.22

Media Industry

Max
2.02
Q3
1.06
Median
0.58
Q1
0.31
Min
0.00

Falling into the lower quartile for the Media industry, NWSA’s Debt-to-Equity Ratio of 0.22 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

SPOT

0.36

Entertainment Industry

Max
1.65
Q3
0.71
Median
0.14
Q1
0.04
Min
0.00

SPOT’s Debt-to-Equity Ratio of 0.36 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

NWSA vs. SPOT: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Media and Entertainment industry benchmarks.

Interest Coverage Ratio (TTM)

NWSA

3.05

Media Industry

Max
44.57
Q3
23.07
Median
4.52
Q1
2.14
Min
-10.82

NWSA’s Interest Coverage Ratio of 3.05 is positioned comfortably within the norm for the Media industry, indicating a standard and healthy capacity to cover its interest payments.

SPOT

38.25

Entertainment Industry

Max
62.11
Q3
31.19
Median
7.50
Q1
2.02
Min
-6.33

SPOT’s Interest Coverage Ratio of 38.25 is in the upper quartile for the Entertainment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

NWSA vs. SPOT: A comparison of their Interest Coverage Ratio (TTM) against their respective Media and Entertainment industry benchmarks.

Financial Strength at a Glance

SymbolNWSASPOT
Current Ratio (MRQ)1.841.47
Quick Ratio (MRQ)1.721.46
Debt-to-Equity Ratio (MRQ)0.220.36
Interest Coverage Ratio (TTM)3.0538.25

Growth

Revenue Growth

NWSA vs. SPOT: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

NWSA vs. SPOT: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

NWSA

1.04%

Media Industry

Max
7.76%
Q3
4.16%
Median
1.67%
Q1
0.00%
Min
0.00%

NWSA’s Dividend Yield of 1.04% is consistent with its peers in the Media industry, providing a dividend return that is standard for its sector.

SPOT

0.00%

Entertainment Industry

Max
2.54%
Q3
1.29%
Median
0.61%
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.

NWSA vs. SPOT: A comparison of their Dividend Yield (TTM) against their respective Media and Entertainment industry benchmarks.

Dividend Payout Ratio (TTM)

NWSA

15.68%

Media Industry

Max
165.03%
Q3
96.17%
Median
45.64%
Q1
14.80%
Min
0.00%

NWSA’s Dividend Payout Ratio of 15.68% is within the typical range for the Media industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

SPOT

0.00%

Entertainment Industry

Max
82.30%
Q3
45.76%
Median
29.16%
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.

NWSA vs. SPOT: A comparison of their Dividend Payout Ratio (TTM) against their respective Media and Entertainment industry benchmarks.

Dividend at a Glance

SymbolNWSASPOT
Dividend Yield (TTM)1.04%0.00%
Dividend Payout Ratio (TTM)15.68%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

NWSA

15.05

Media Industry

Max
49.10
Q3
35.07
Median
17.34
Q1
10.39
Min
5.81

NWSA’s P/E Ratio of 15.05 is within the middle range for the Media 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

151.28

Entertainment Industry

Max
53.51
Q3
45.31
Median
33.16
Q1
18.21
Min
3.89

At 151.28, SPOT’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Entertainment industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

NWSA vs. SPOT: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Media and Entertainment industry benchmarks.

Price-to-Sales Ratio (TTM)

NWSA

1.99

Media Industry

Max
3.23
Q3
1.85
Median
1.05
Q1
0.78
Min
0.22

NWSA’s P/S Ratio of 1.99 is in the upper echelon for the Media 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

7.34

Entertainment Industry

Max
12.81
Q3
7.20
Median
4.68
Q1
3.32
Min
0.79

SPOT’s P/S Ratio of 7.34 is in the upper echelon for the Entertainment 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.

NWSA vs. SPOT: A comparison of their Price-to-Sales Ratio (TTM) against their respective Media and Entertainment industry benchmarks.

Price-to-Book Ratio (MRQ)

NWSA

2.02

Media Industry

Max
4.30
Q3
2.57
Median
1.83
Q1
1.19
Min
0.51

NWSA’s P/B Ratio of 2.02 is within the conventional range for the Media industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

SPOT

20.34

Entertainment Industry

Max
17.11
Q3
8.38
Median
5.24
Q1
2.18
Min
0.67

At 20.34, SPOT’s P/B Ratio is at an extreme premium to the Entertainment industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

NWSA vs. SPOT: A comparison of their Price-to-Book Ratio (MRQ) against their respective Media and Entertainment industry benchmarks.

Valuation at a Glance

SymbolNWSASPOT
Price-to-Earnings Ratio (TTM)15.05151.28
Price-to-Sales Ratio (TTM)1.997.34
Price-to-Book Ratio (MRQ)2.0220.34
Price-to-Free Cash Flow Ratio (TTM)23.4243.24