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

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

Company Profile

SymbolSPOTTU
Company NameSpotify Technology S.A.TELUS Corporation
CountryLuxembourgCanada
GICS SectorCommunication ServicesCommunication Services
GICS IndustryEntertainmentDiversified Telecommunication Services
Market Capitalization139.99 billion USD23.68 billion USD
ExchangeNYSENYSE
Listing DateApril 3, 2018June 11, 1996
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of SPOT and TU 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.

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

Historical Performance at a Glance

SymbolSPOTTU
5-Day Price Return-2.54%-0.14%
13-Week Price Return-7.61%-0.59%
26-Week Price Return23.30%6.06%
52-Week Price Return82.58%-1.75%
Month-to-Date Return-2.54%-0.14%
Year-to-Date Return52.06%12.31%
10-Day Avg. Volume1.65M3.46M
3-Month Avg. Volume1.84M3.66M
3-Month Volatility39.76%13.94%
Beta1.670.34

Profitability

Return on Equity (TTM)

SPOT

14.00%

Entertainment Industry

Max
42.50%
Q3
24.06%
Median
13.69%
Q1
5.35%
Min
-17.95%

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.

TU

6.21%

Diversified Telecommunication Services Industry

Max
34.76%
Q3
16.39%
Median
9.92%
Q1
1.36%
Min
-10.54%

TU’s Return on Equity of 6.21% is on par with the norm for the Diversified Telecommunication Services industry, indicating its profitability relative to shareholder equity is typical for the sector.

SPOT vs. TU: A comparison of their Return on Equity (TTM) against their respective Entertainment and Diversified Telecommunication Services industry benchmarks.

Net Profit Margin (TTM)

SPOT

4.85%

Entertainment Industry

Max
45.33%
Q3
24.40%
Median
13.94%
Q1
4.28%
Min
-23.67%

SPOT’s Net Profit Margin of 4.85% is aligned with the median group of its peers in the Entertainment industry. This indicates its ability to convert revenue into profit is typical for the sector.

TU

4.73%

Diversified Telecommunication Services Industry

Max
28.40%
Q3
13.17%
Median
7.18%
Q1
1.75%
Min
-14.73%

TU’s Net Profit Margin of 4.73% is aligned with the median group of its peers in the Diversified Telecommunication Services industry. This indicates its ability to convert revenue into profit is typical for the sector.

SPOT vs. TU: A comparison of their Net Profit Margin (TTM) against their respective Entertainment and Diversified Telecommunication Services industry benchmarks.

Operating Profit Margin (TTM)

SPOT

11.11%

Entertainment Industry

Max
41.77%
Q3
28.26%
Median
16.13%
Q1
8.03%
Min
-3.93%

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.

TU

12.11%

Diversified Telecommunication Services Industry

Max
37.46%
Q3
22.24%
Median
14.86%
Q1
9.46%
Min
-9.42%

TU’s Operating Profit Margin of 12.11% is around the midpoint for the Diversified Telecommunication Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

SPOT vs. TU: A comparison of their Operating Profit Margin (TTM) against their respective Entertainment and Diversified Telecommunication Services industry benchmarks.

Profitability at a Glance

SymbolSPOTTU
Return on Equity (TTM)14.00%6.21%
Return on Assets (TTM)6.62%1.65%
Net Profit Margin (TTM)4.85%4.73%
Operating Profit Margin (TTM)11.11%12.11%
Gross Profit Margin (TTM)31.63%62.94%

Financial Strength

Current Ratio (MRQ)

SPOT

1.47

Entertainment Industry

Max
6.76
Q3
4.02
Median
1.55
Q1
0.86
Min
0.38

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.

TU

0.86

Diversified Telecommunication Services Industry

Max
1.53
Q3
1.09
Median
0.91
Q1
0.70
Min
0.18

TU’s Current Ratio of 0.86 aligns with the median group of the Diversified Telecommunication Services industry, indicating that its short-term liquidity is in line with its sector peers.

SPOT vs. TU: A comparison of their Current Ratio (MRQ) against their respective Entertainment and Diversified Telecommunication Services industry benchmarks.

Debt-to-Equity Ratio (MRQ)

SPOT

0.36

Entertainment Industry

Max
1.54
Q3
0.77
Median
0.16
Q1
0.02
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.

TU

2.18

Diversified Telecommunication Services Industry

Max
3.82
Q3
2.13
Median
1.40
Q1
0.71
Min
0.00

TU’s leverage is in the upper quartile of the Diversified Telecommunication Services industry, with a Debt-to-Equity Ratio of 2.18. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

SPOT vs. TU: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Entertainment and Diversified Telecommunication Services industry benchmarks.

Interest Coverage Ratio (TTM)

SPOT

38.25

Entertainment Industry

Max
87.17
Q3
35.59
Median
7.06
Q1
1.13
Min
-44.74

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.

TU

1.88

Diversified Telecommunication Services Industry

Max
16.05
Q3
8.06
Median
3.53
Q1
1.36
Min
-2.60

TU’s Interest Coverage Ratio of 1.88 is positioned comfortably within the norm for the Diversified Telecommunication Services industry, indicating a standard and healthy capacity to cover its interest payments.

SPOT vs. TU: A comparison of their Interest Coverage Ratio (TTM) against their respective Entertainment and Diversified Telecommunication Services industry benchmarks.

Financial Strength at a Glance

SymbolSPOTTU
Current Ratio (MRQ)1.470.86
Quick Ratio (MRQ)1.460.76
Debt-to-Equity Ratio (MRQ)0.362.18
Interest Coverage Ratio (TTM)38.251.88

Growth

Revenue Growth

SPOT vs. TU: 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

SPOT vs. TU: 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)

SPOT

0.00%

Entertainment Industry

Max
2.90%
Q3
1.29%
Median
0.59%
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.

TU

4.70%

Diversified Telecommunication Services Industry

Max
10.69%
Q3
5.66%
Median
4.23%
Q1
1.76%
Min
0.00%

TU’s Dividend Yield of 4.70% is consistent with its peers in the Diversified Telecommunication Services industry, providing a dividend return that is standard for its sector.

SPOT vs. TU: A comparison of their Dividend Yield (TTM) against their respective Entertainment and Diversified Telecommunication Services industry benchmarks.

Dividend Payout Ratio (TTM)

SPOT

0.00%

Entertainment Industry

Max
82.30%
Q3
38.45%
Median
29.74%
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.

TU

163.46%

Diversified Telecommunication Services Industry

Max
273.77%
Q3
134.61%
Median
76.89%
Q1
41.79%
Min
0.00%

TU’s Dividend Payout Ratio of 163.46% is in the upper quartile for the Diversified Telecommunication Services industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

SPOT vs. TU: A comparison of their Dividend Payout Ratio (TTM) against their respective Entertainment and Diversified Telecommunication Services industry benchmarks.

Dividend at a Glance

SymbolSPOTTU
Dividend Yield (TTM)0.00%4.70%
Dividend Payout Ratio (TTM)0.00%163.46%

Valuation

Price-to-Earnings Ratio (TTM)

SPOT

149.40

Entertainment Industry

Max
92.09
Q3
54.51
Median
28.92
Q1
19.75
Min
2.96

At 149.40, 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.

TU

34.78

Diversified Telecommunication Services Industry

Max
42.43
Q3
27.51
Median
18.10
Q1
13.52
Min
4.10

A P/E Ratio of 34.78 places TU in the upper quartile for the Diversified Telecommunication Services industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

SPOT vs. TU: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Entertainment and Diversified Telecommunication Services industry benchmarks.

Price-to-Sales Ratio (TTM)

SPOT

7.25

Entertainment Industry

Max
12.34
Q3
7.67
Median
5.06
Q1
2.72
Min
0.67

SPOT’s P/S Ratio of 7.25 aligns with the market consensus for the Entertainment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

TU

1.65

Diversified Telecommunication Services Industry

Max
4.55
Q3
2.45
Median
1.74
Q1
0.98
Min
0.36

TU’s P/S Ratio of 1.65 aligns with the market consensus for the Diversified Telecommunication Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

SPOT vs. TU: A comparison of their Price-to-Sales Ratio (TTM) against their respective Entertainment and Diversified Telecommunication Services industry benchmarks.

Price-to-Book Ratio (MRQ)

SPOT

20.32

Entertainment Industry

Max
22.84
Q3
10.54
Median
6.60
Q1
2.30
Min
0.65

SPOT’s P/B Ratio of 20.32 is in the upper tier for the Entertainment industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

TU

2.18

Diversified Telecommunication Services Industry

Max
7.27
Q3
3.97
Median
2.45
Q1
1.25
Min
0.27

TU’s P/B Ratio of 2.18 is within the conventional range for the Diversified Telecommunication Services 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 vs. TU: A comparison of their Price-to-Book Ratio (MRQ) against their respective Entertainment and Diversified Telecommunication Services industry benchmarks.

Valuation at a Glance

SymbolSPOTTU
Price-to-Earnings Ratio (TTM)149.4034.78
Price-to-Sales Ratio (TTM)7.251.65
Price-to-Book Ratio (MRQ)20.322.18
Price-to-Free Cash Flow Ratio (TTM)42.7031.64