SPOT
Spotify Technology S.A.
Internet Content & Information
Market Cap$86.00B
5Y Perf.+130.9%
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Stock Comparison
SPOT vs NFLX
Revenue, margins, valuation, and 5-year total return — side by side.
NFLX
Netflix, Inc.
Entertainment
Market Cap$370.67B
5Y Perf.+108.4%
SPOT vs NFLX — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | SPOT | NFLX |
|---|---|---|
| Industry | Internet Content & Information | Entertainment |
| Market Cap | $86.00B | $370.67B |
| Revenue (TTM) | $17.60B | $45.18B |
| Net Income (TTM) | $2.72B | $10.98B |
| Gross Margin | 32.3% | 48.5% |
| Operating Margin | 13.7% | 29.5% |
| Forward P/E | 32.3x | 24.5x |
| Total Debt | $2.32B | $14.46B |
| Cash & Equiv. | $5.26B | $9.03B |
SPOT vs NFLX — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
SPOT
NFLX
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Spotify Technology … (SPOT) | 100 | 230.9 | +130.9% |
| Netflix, Inc. (NFLX) | 100 | 208.4 | +108.4% |
Price return only. Dividends and distributions are not included.
Quick Verdict: SPOT vs NFLX
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: NFLX leads in 6 of 7 categories, making it the strongest pick for growth and revenue expansion and valuation and capital efficiency. As sector peers, any of these can serve as alternatives in the same allocation.
SPOT
Spotify Technology S.A.
The Growth Play
SPOT is the clearest fit if your priority is growth exposure and sleep-well-at-night.
- Rev growth 9.7%, EPS growth 91.1%, 3Y rev CAGR 13.6%
- Lower volatility, beta 0.57, Low D/E 27.9%, current ratio 1.72x
Best for: growth exposure and sleep-well-at-night
NFLX
Netflix, Inc.
The Income Pick
NFLX carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- beta 0.35
- 8.7% 10Y total return vs SPOT's 180.4%
- Beta 0.35, current ratio 1.19x
Best for: income & stability and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | NFLX | 15.9% revenue growth vs SPOT's 9.7% |
| Value | NFLX | Lower P/E (24.5x vs 32.3x) |
| Quality / Margins | NFLX | 24.3% margin vs SPOT's 15.5% |
| Stability / Safety | NFLX | Beta 0.35 vs SPOT's 0.57 |
| Dividends | Tie | Neither stock pays a meaningful dividend |
| Momentum (1Y) | NFLX | -23.6% vs SPOT's -36.2% |
| Efficiency (ROA) | NFLX | 19.8% ROA vs SPOT's 19.3%, ROIC 29.8% vs 40.5% |
SPOT vs NFLX — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2024
FY 2024
SPOT vs NFLX — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLSPOTLAGGINGNFLX
NFLXNetflix, Inc.
2leads
SPOTSpotify Technology S.…
2leads
6 Total Categories
CATEGORYLEADERvs NFLXMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
NFLX5/6
Valuation MetricsMultiples, price ratios, and targets
SPOT4/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
SPOT5/9
Total Returns1Y, 3Y, 5Y total returns with dividends
Tied
—
Risk & VolatilityBeta, volatility, and downside exposure
NFLX2/2
Analyst OutlookRatings, price targets, and dividends
—
—
Income & Cash Flow (Last 12 Months)
NFLX leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
NFLX is the larger business by revenue, generating $45.2B annually — 2.6x SPOT's $17.6B. NFLX is the more profitable business, keeping 24.3% of every revenue dollar as net income compared to SPOT's 15.5%. On growth, NFLX holds the edge at +17.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | SPOTSpotify Technolog… | NFLXNetflix, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $17.6B | $45.2B |
| EBITDAEarnings before interest/tax | $2.5B | $30.1B |
| Net IncomeAfter-tax profit | $2.7B | $11.0B |
| Free Cash FlowCash after capex | $3.2B | $9.5B |
| Gross MarginGross profit ÷ Revenue | +32.3% | +48.5% |
| Operating MarginEBIT ÷ Revenue | +13.7% | +29.5% |
| Net MarginNet income ÷ Revenue | +15.5% | +24.3% |
| FCF MarginFCF ÷ Revenue | +18.1% | +20.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +10.0% | +17.6% |
| EPS Growth (YoY)Latest quarter vs prior year | +2.3% | +31.1% |
NFLX leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
SPOT leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
At 33.9x trailing earnings, SPOT trades at a 2% valuation discount to NFLX's 34.6x P/E. On an enterprise value basis, NFLX's 12.5x EV/EBITDA is more attractive than SPOT's 30.6x.
| Metric | SPOTSpotify Technolog… | NFLXNetflix, Inc. |
|---|---|---|
| Market CapShares × price | $86.0B | $370.7B |
| Enterprise ValueMkt cap + debt − cash | $82.6B | $376.1B |
| Trailing P/EPrice ÷ TTM EPS | 33.88x | 34.58x |
| Forward P/EPrice ÷ next-FY EPS est. | 32.28x | 24.52x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.05x |
| EV / EBITDAEnterprise value multiple | 30.59x | 12.50x |
| Price / SalesMarket cap ÷ Revenue | 4.26x | 8.20x |
| Price / BookPrice ÷ Book value/share | 9.00x | 14.19x |
| Price / FCFMarket cap ÷ FCF | 25.52x | 39.18x |
SPOT leads this category, winning 4 of 6 comparable metrics.
Profitability & Efficiency
SPOT leads this category, winning 5 of 9 comparable metrics.
Profitability & Efficiency
NFLX delivers a 41.3% return on equity — every $100 of shareholder capital generates $41 in annual profit, vs $35 for SPOT. SPOT carries lower financial leverage with a 0.28x debt-to-equity ratio, signaling a more conservative balance sheet compared to NFLX's 0.54x. On the Piotroski fundamental quality scale (0–9), NFLX scores 7/9 vs SPOT's 6/9, reflecting strong financial health.
| Metric | SPOTSpotify Technolog… | NFLXNetflix, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +35.3% | +41.3% |
| ROA (TTM)Return on assets | +19.3% | +19.8% |
| ROICReturn on invested capital | +40.5% | +29.8% |
| ROCEReturn on capital employed | +26.7% | +30.5% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | 0.28x | 0.54x |
| Net DebtTotal debt minus cash | -$2.9B | $5.4B |
| Cash & Equiv.Liquid assets | $5.3B | $9.0B |
| Total DebtShort + long-term debt | $2.3B | $14.5B |
| Interest CoverageEBIT ÷ Interest expense | 84.99x | 17.33x |
SPOT leads this category, winning 5 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
Evenly matched — SPOT and NFLX each lead in 3 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in SPOT five years ago would be worth $18,309 today (with dividends reinvested), compared to $17,974 for NFLX. Over the past 12 months, NFLX leads with a -23.6% total return vs SPOT's -36.2%. The 3-year compound annual growth rate (CAGR) favors SPOT at 42.5% vs NFLX's 38.2% — a key indicator of consistent wealth creation.
| Metric | SPOTSpotify Technolog… | NFLXNetflix, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -27.3% | -3.9% |
| 1-Year ReturnPast 12 months | -36.2% | -23.6% |
| 3-Year ReturnCumulative with dividends | +189.1% | +164.1% |
| 5-Year ReturnCumulative with dividends | +83.1% | +79.7% |
| 10-Year ReturnCumulative with dividends | +180.4% | +866.6% |
| CAGR (3Y)Annualised 3-year return | +42.5% | +38.2% |
Evenly matched — SPOT and NFLX each lead in 3 of 6 comparable metrics.
Risk & Volatility
NFLX leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
NFLX is the less volatile stock with a 0.35 beta — it tends to amplify market swings less than SPOT's 0.57 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. NFLX currently trades 65.2% from its 52-week high vs SPOT's 53.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | SPOTSpotify Technolog… | NFLXNetflix, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.57x | 0.35x |
| 52-Week HighHighest price in past year | $785.00 | $134.12 |
| 52-Week LowLowest price in past year | $405.00 | $75.01 |
| % of 52W HighCurrent price vs 52-week peak | +53.2% | +65.2% |
| RSI (14)Momentum oscillator 0–100 | 33.1 | 35.3 |
| Avg Volume (50D)Average daily shares traded | 2.0M | 42.9M |
NFLX leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates SPOT as "Buy" and NFLX as "Buy". Consensus price targets imply 49.0% upside for SPOT (target: $623) vs 32.1% for NFLX (target: $116).
| Metric | SPOTSpotify Technolog… | NFLXNetflix, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $622.62 | $115.59 |
| # AnalystsCovering analysts | 52 | 99 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +0.6% | +2.5% |
Insufficient data to determine a leader in this category.
Key Takeaway
NFLX leads in 2 of 6 categories (Income & Cash Flow, Risk & Volatility). SPOT leads in 2 (Valuation Metrics, Profitability & Efficiency). 1 tied.
Best OverallSpotify Technology S.A. (SPOT)Leads 2 of 6 categories
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SPOT vs NFLX: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is SPOT or NFLX a better buy right now?
For growth investors, Netflix, Inc.
(NFLX) is the stronger pick with 15. 9% revenue growth year-over-year, versus 9. 7% for Spotify Technology S. A. (SPOT). Spotify Technology S. A. (SPOT) offers the better valuation at 33. 9x trailing P/E (32. 3x forward), making it the more compelling value choice. Analysts rate Spotify Technology S. A. (SPOT) a "Buy" — based on 52 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — SPOT or NFLX?
On trailing P/E, Spotify Technology S.
A. (SPOT) is the cheapest at 33. 9x versus Netflix, Inc. at 34. 6x. On forward P/E, Netflix, Inc. is actually cheaper at 24. 5x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — SPOT or NFLX?
Over the past 5 years, Spotify Technology S.
A. (SPOT) delivered a total return of +83. 1%, compared to +79. 7% for Netflix, Inc. (NFLX). Over 10 years, the gap is even starker: NFLX returned +866. 6% versus SPOT's +180. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — SPOT or NFLX?
By beta (market sensitivity over 5 years), Netflix, Inc.
(NFLX) is the lower-risk stock at 0. 35β versus Spotify Technology S. A. 's 0. 57β — meaning SPOT is approximately 60% more volatile than NFLX relative to the S&P 500. On balance sheet safety, Spotify Technology S. A. (SPOT) carries a lower debt/equity ratio of 28% versus 54% for Netflix, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — SPOT or NFLX?
By revenue growth (latest reported year), Netflix, Inc.
(NFLX) is pulling ahead at 15. 9% versus 9. 7% for Spotify Technology S. A. (SPOT). On earnings-per-share growth, the picture is similar: Spotify Technology S. A. grew EPS 91. 1% year-over-year, compared to 27. 6% for Netflix, Inc.. Over a 3-year CAGR, SPOT leads at 13. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — SPOT or NFLX?
Netflix, Inc.
(NFLX) is the more profitable company, earning 24. 3% net margin versus 12. 9% for Spotify Technology S. A. — meaning it keeps 24. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NFLX leads at 29. 5% versus 12. 8% for SPOT. At the gross margin level — before operating expenses — NFLX leads at 48. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is SPOT or NFLX more undervalued right now?
On forward earnings alone, Netflix, Inc.
(NFLX) trades at 24. 5x forward P/E versus 32. 3x for Spotify Technology S. A. — 7. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SPOT: 49. 0% to $622. 62.
08Which pays a better dividend — SPOT or NFLX?
None of the stocks in this comparison currently pay a material dividend.
All are effectively zero-yield and should be held for capital appreciation rather than income.
09Is SPOT or NFLX better for a retirement portfolio?
For long-horizon retirement investors, Netflix, Inc.
(NFLX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 35), +866. 6% 10Y return). Both have compounded well over 10 years (NFLX: +866. 6%, SPOT: +180. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between SPOT and NFLX?
Both stocks operate in the Communication Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: SPOT is a mid-cap quality compounder stock; NFLX is a large-cap high-growth stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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Revenue Growth>
%
(SPOT: 10.0% · NFLX: 17.6%)Net Margin>
%
(SPOT: 15.5% · NFLX: 24.3%)P/E Ratio<
x
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