SPOT vs. WMG: Spotify vs. Warner Music Stock Comparison
How do Spotify (SPOT) and Warner Music (WMG) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Spotify (SPOT) and Warner Music (WMG) are both classified in the Movies & Entertainment sub-industry within the broader Entertainment industry, placing them in the closest GICS peer bucket.
| Profile Item | SPOT | WMG |
|---|---|---|
| Name | Spotify Technology S.A. | Warner Music Group Corp. |
| Country/Region | Sweden | United States |
| GICS Sector | Communication Services | Communication Services |
| GICS Industry Group | Media & Entertainment | Media & Entertainment |
| GICS Industry | Entertainment | Entertainment |
| GICS Sub-Industry | Movies & Entertainment | Movies & Entertainment |
| Market Capitalization | 123.97 billion USD | 16.37 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | Nasdaq |
| Listing Date | April 3, 2018 | June 3, 2020 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | SPOT | WMG |
|---|---|---|
| Total Return (1Y) | -2.62% | 6.98% |
| Total Return (3Y, Annualized) | 52.24% | 1.34% |
| Total Return (5Y, Annualized) | 16.60% | -6.02% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | SPOT | WMG |
|---|---|---|
| Volatility (1Y, Annualized) | 47.29% | 35.24% |
| Beta (5Y) | 1.45 | 1.31 |
| Max Drawdown (5Y) | -74.68% | -53.17% |
| Avg. Volume (3M) | 1.66M | 2.05M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | SPOT | WMG |
|---|---|---|
| Sharpe Ratio (1Y) | -0.15 | 0.08 |
| Sortino Ratio (1Y) | -0.22 | 0.11 |
Profitability
ROE (TTM)
Both companies show strong equity returns, but Warner Music (WMG) at 70.07% is the standout with ROE above its industry range; Spotify (SPOT) at 35.81% also sits in the top quartile.
SPOT
Media & Entertainment industry group
35.81%
- Max
- 49.92%
- SPOT
- 35.81%
- Q3
- 17.95%
- Median
- 7.20%
- Q1
- -4.53%
- Min
- -26.31%
WMG
Media & Entertainment industry group
70.07%
- WMG
- 70.07%
- Max
- 49.92%
- Q3
- 17.95%
- Median
- 7.20%
- Q1
- -4.53%
- Min
- -26.31%
Net Margin (TTM)
Spotify (SPOT) at 15.73% retains a top-quartile share of revenue as profit, ahead of Warner Music (WMG) at 9.20%, which keeps about the industry-typical share.
SPOT
Media & Entertainment industry group
15.73%
- Max
- 32.91%
- SPOT
- 15.73%
- Q3
- 11.75%
- Median
- 5.04%
- Q1
- -4.17%
- Min
- -25.14%
WMG
Media & Entertainment industry group
9.20%
- Max
- 32.91%
- Q3
- 11.75%
- WMG
- 9.20%
- Median
- 5.04%
- Q1
- -4.17%
- Min
- -25.14%
Operating Margin (TTM)
Both Spotify (SPOT) at 13.52% and Warner Music (WMG) at 16.74% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.
SPOT
Media & Entertainment industry group
13.52%
- Max
- 40.16%
- Q3
- 18.72%
- SPOT
- 13.52%
- Median
- 8.63%
- Q1
- 1.90%
- Min
- -22.08%
WMG
Media & Entertainment industry group
16.74%
- Max
- 40.16%
- Q3
- 18.72%
- WMG
- 16.74%
- Median
- 8.63%
- Q1
- 1.90%
- Min
- -22.08%
Profitability Metrics
| Metric | SPOT | WMG |
|---|---|---|
| ROE (TTM) | 35.81% | 70.07% |
| ROA (TTM) | 11.82% | 7.65% |
| Net Margin (TTM) | 15.73% | 9.20% |
| Operating Margin (TTM) | 13.52% | 16.74% |
| Gross Margin (TTM) | 33.12% | 45.77% |
Growth
Revenue Growth
Both Spotify (SPOT) at 9.65% and Warner Music (WMG) at 4.37% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Spotify (SPOT) at 91.09% sits in the top EPS growth quartile, while Warner Music (WMG) at -16.87% is closer to the peer norm — faster per-share earnings growth for SPOT.
Growth Metrics
| Metric | SPOT | WMG |
|---|---|---|
| Revenue Growth (YoY) | 9.65% | 4.37% |
| Revenue Growth (3Y CAGR) | 13.59% | 4.25% |
| EPS Growth (YoY) | 91.09% | -16.87% |
| EPS Growth (3Y CAGR) | -- | -13.33% |
Financial Strength
Current Ratio (MRQ)
Spotify (SPOT) at 2.13 keeps current ratio within its industry’s typical mid-range, while Warner Music (WMG) at 0.73 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for WMG.
SPOT
Media & Entertainment industry group
2.13
- Max
- 4.69
- Q3
- 2.53
- SPOT
- 2.13
- Median
- 1.52
- Q1
- 0.95
- Min
- 0.28
WMG
Media & Entertainment industry group
0.73
- Max
- 4.69
- Q3
- 2.53
- Median
- 1.52
- Q1
- 0.95
- WMG
- 0.73
- Min
- 0.28
Debt / Equity (MRQ)
Spotify (SPOT) at 0.05 keeps leverage in the lower quartile, while Warner Music (WMG) at 4.53 is above its industry debt-to-equity ratio range.
SPOT
Media & Entertainment industry group
0.05
- Max
- 3.65
- Q3
- 1.69
- Median
- 0.46
- Q1
- 0.17
- SPOT
- 0.05
- Min
- 0.00
WMG
Media & Entertainment industry group
4.53
- WMG
- 4.53
- Max
- 3.65
- Q3
- 1.69
- Median
- 0.46
- Q1
- 0.17
- Min
- 0.00
Financial Strength Metrics
| Metric | SPOT | WMG |
|---|---|---|
| Current Ratio (MRQ) | 2.13 | 0.73 |
| Debt / Equity (MRQ) | 0.05 | 4.53 |
| Net Debt / EBITDA | -2.40 | 2.57 |
Dividends
Dividend Yield (TTM)
Spotify (SPOT) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Warner Music (WMG) reports a yield of 2.38%, ranking against industry peers normally.
SPOT
Media & Entertainment industry group
0.00%
- Max
- 1.33%
- Q3
- 0.65%
- SPOT
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
WMG
Media & Entertainment industry group
2.38%
- WMG
- 2.38%
- Max
- 1.33%
- Q3
- 0.65%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Spotify (SPOT) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Warner Music (WMG) reports a payout of 60.80%, ranking against industry peers normally.
SPOT
Media & Entertainment industry group
0.00%
- Max
- 71.43%
- Q3
- 28.98%
- SPOT
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
WMG
Media & Entertainment industry group
60.80%
- Max
- 71.43%
- WMG
- 60.80%
- Q3
- 28.98%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | SPOT | WMG |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.38% |
| Dividend Payout Ratio (TTM) | 0.00% | 60.80% |
Valuation
P/E Ratio (TTM)
Warner Music (WMG) at 25.04 is near its industry’s usual P/E ratio, while Spotify (SPOT) at 36.75 sits in the richer quartile — SPOT needs stronger growth or earnings quality to justify the premium.
SPOT
Media & Entertainment industry group
36.75
- Max
- 51.21
- SPOT
- 36.75
- Q3
- 28.90
- Median
- 17.98
- Q1
- 11.53
- Min
- 1.64
WMG
Media & Entertainment industry group
25.04
- Max
- 51.21
- Q3
- 28.90
- WMG
- 25.04
- Median
- 17.98
- Q1
- 11.53
- Min
- 1.64
P/S Ratio (TTM)
Warner Music (WMG) at 2.24 is priced about in line with its industry on P/S ratio, while Spotify (SPOT) at 6.59 sits in the pricier quartile — SPOT costs more per dollar of sales.
SPOT
Media & Entertainment industry group
6.59
- Max
- 7.43
- SPOT
- 6.59
- Q3
- 3.82
- Median
- 1.40
- Q1
- 0.70
- Min
- 0.00
WMG
Media & Entertainment industry group
2.24
- Max
- 7.43
- Q3
- 3.82
- WMG
- 2.24
- Median
- 1.40
- Q1
- 0.70
- Min
- 0.00
P/B Ratio (MRQ)
Measured against book value, both Spotify (SPOT) at 12.62 and Warner Music (WMG) at 19.17 look expensive — each P/B ratio sits above its industry’s benchmark range.
SPOT
Media & Entertainment industry group
12.62
- SPOT
- 12.62
- Max
- 11.45
- Q3
- 5.30
- Median
- 1.84
- Q1
- 0.77
- Min
- -2.61
WMG
Media & Entertainment industry group
19.17
- WMG
- 19.17
- Max
- 11.45
- Q3
- 5.30
- Median
- 1.84
- Q1
- 0.77
- Min
- -2.61
Valuation Metrics
| Metric | SPOT | WMG |
|---|---|---|
| P/E Ratio (TTM) | 36.75 | 25.04 |
| P/S Ratio (TTM) | 6.59 | 2.24 |
| P/B Ratio (MRQ) | 12.62 | 19.17 |
| Free Cash Flow Yield (TTM) | 1.15% | 2.33% |