SPOT vs. TWLO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at SPOT and TWLO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | SPOT | TWLO |
|---|---|---|
| Company Name | Spotify Technology S.A. | Twilio Inc. |
| Country | Luxembourg | United States |
| GICS Sector | Communication Services | Information Technology |
| GICS Industry | Entertainment | IT Services |
| Market Capitalization | 147.45 billion USD | 15.76 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | April 3, 2018 | June 23, 2016 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of SPOT and TWLO 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.
Historical Performance at a Glance
| Symbol | SPOT | TWLO |
|---|---|---|
| 5-Day Price Return | -1.50% | 1.35% |
| 13-Week Price Return | -9.04% | -12.39% |
| 26-Week Price Return | 21.11% | 0.86% |
| 52-Week Price Return | 89.06% | 57.47% |
| Month-to-Date Return | 2.36% | 2.61% |
| Year-to-Date Return | 56.02% | -4.98% |
| 10-Day Avg. Volume | 1.61M | 2.91M |
| 3-Month Avg. Volume | 1.85M | 3.18M |
| 3-Month Volatility | 41.06% | 60.17% |
| Beta | 1.69 | 1.29 |
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.
TWLO
0.25%
IT Services Industry
- Max
- 32.78%
- Q3
- 19.28%
- Median
- 13.86%
- Q1
- 5.50%
- Min
- -10.00%
TWLO’s Return on Equity of 0.25% is in the lower quartile for the IT Services industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
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.
TWLO
0.43%
IT Services Industry
- Max
- 19.71%
- Q3
- 11.01%
- Median
- 6.66%
- Q1
- 2.96%
- Min
- -6.22%
Falling into the lower quartile for the IT Services industry, TWLO’s Net Profit Margin of 0.43% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
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.
TWLO
1.30%
IT Services Industry
- Max
- 22.44%
- Q3
- 14.90%
- Median
- 8.82%
- Q1
- 4.91%
- Min
- -9.89%
TWLO’s Operating Profit Margin of 1.30% is in the lower quartile for the IT Services industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | SPOT | TWLO |
|---|---|---|
| Return on Equity (TTM) | 14.00% | 0.25% |
| Return on Assets (TTM) | 6.62% | 0.20% |
| Net Profit Margin (TTM) | 4.85% | 0.43% |
| Operating Profit Margin (TTM) | 11.11% | 1.30% |
| Gross Profit Margin (TTM) | 31.63% | 49.96% |
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.
TWLO
4.90
IT Services Industry
- Max
- 3.17
- Q3
- 2.00
- Median
- 1.47
- Q1
- 1.05
- Min
- 0.52
TWLO’s Current Ratio of 4.90 is exceptionally high, placing it well outside the typical range for the IT Services industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
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.
TWLO
0.12
IT Services Industry
- Max
- 3.11
- Q3
- 1.55
- Median
- 0.55
- Q1
- 0.17
- Min
- 0.00
Falling into the lower quartile for the IT Services industry, TWLO’s Debt-to-Equity Ratio of 0.12 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
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.
TWLO
-3.85
IT Services Industry
- Max
- 129.00
- Q3
- 56.00
- Median
- 11.69
- Q1
- 0.77
- Min
- -28.15
TWLO has a negative Interest Coverage Ratio of -3.85. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | SPOT | TWLO |
|---|---|---|
| Current Ratio (MRQ) | 1.47 | 4.90 |
| Quick Ratio (MRQ) | 1.46 | 4.54 |
| Debt-to-Equity Ratio (MRQ) | 0.36 | 0.12 |
| Interest Coverage Ratio (TTM) | 38.25 | -3.85 |
Growth
Revenue Growth
EPS Growth
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.
TWLO
0.00%
IT Services Industry
- Max
- 2.79%
- Q3
- 1.76%
- Median
- 0.58%
- Q1
- 0.00%
- Min
- 0.00%
TWLO 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.
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.
TWLO
0.00%
IT Services Industry
- Max
- 107.85%
- Q3
- 52.62%
- Median
- 22.53%
- Q1
- 0.00%
- Min
- 0.00%
TWLO 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.
Dividend at a Glance
| Symbol | SPOT | TWLO |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
SPOT
150.95
Entertainment Industry
- Max
- 92.09
- Q3
- 54.51
- Median
- 28.92
- Q1
- 19.75
- Min
- 2.96
At 150.95, 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.
TWLO
768.53
IT Services Industry
- Max
- 56.41
- Q3
- 33.17
- Median
- 23.17
- Q1
- 16.18
- Min
- 6.62
At 768.53, TWLO’s P/E Ratio is exceptionally high, exceeding the typical maximum for the IT Services industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Price-to-Sales Ratio (TTM)
SPOT
7.32
Entertainment Industry
- Max
- 12.34
- Q3
- 7.67
- Median
- 5.06
- Q1
- 2.72
- Min
- 0.67
SPOT’s P/S Ratio of 7.32 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.
TWLO
3.29
IT Services Industry
- Max
- 5.99
- Q3
- 4.26
- Median
- 1.93
- Q1
- 0.97
- Min
- 0.12
TWLO’s P/S Ratio of 3.29 aligns with the market consensus for the IT Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
SPOT
20.23
Entertainment Industry
- Max
- 22.84
- Q3
- 10.54
- Median
- 6.60
- Q1
- 2.30
- Min
- 0.65
SPOT’s P/B Ratio of 20.23 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.
TWLO
2.36
IT Services Industry
- Max
- 12.34
- Q3
- 7.54
- Median
- 3.84
- Q1
- 2.52
- Min
- 0.88
TWLO’s P/B Ratio of 2.36 is in the lower quartile for the IT Services industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | SPOT | TWLO |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 150.95 | 768.53 |
| Price-to-Sales Ratio (TTM) | 7.32 | 3.29 |
| Price-to-Book Ratio (MRQ) | 20.23 | 2.36 |
| Price-to-Free Cash Flow Ratio (TTM) | 43.14 | 21.48 |