Spotify Technology (NYSE: SPOT) is one of 21 publicly-traded companies in the “Radio broadcasting stations” industry, but how does it weigh in compared to its peers? We will compare Spotify Technology to similar companies based on the strength of its institutional ownership, valuation, earnings, analyst recommendations, dividends, profitability and risk.
Profitability
This table compares Spotify Technology and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Spotify Technology | -1.31% | -4.29% | -1.68% |
| Spotify Technology Competitors | 4.72% | -17.37% | 0.59% |
Earnings & Valuation
This table compares Spotify Technology and its peers gross revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Spotify Technology | $9.00 billion | -$663.68 million | -132.50 |
| Spotify Technology Competitors | $2.11 billion | -$81.47 million | -21.17 |
Spotify Technology has higher revenue, but lower earnings than its peers. Spotify Technology is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Institutional and Insider Ownership
60.5% of Spotify Technology shares are held by institutional investors. Comparatively, 32.8% of shares of all “Radio broadcasting stations” companies are held by institutional investors. 27.5% of shares of all “Radio broadcasting stations” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility & Risk
Spotify Technology has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, Spotify Technology’s peers have a beta of 1.12, meaning that their average stock price is 12% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings for Spotify Technology and its peers, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Spotify Technology | 3 | 8 | 14 | 0 | 2.44 |
| Spotify Technology Competitors | 165 | 629 | 963 | 30 | 2.48 |
Spotify Technology currently has a consensus price target of $309.13, suggesting a potential upside of 29.61%. As a group, “Radio broadcasting stations” companies have a potential upside of 78.69%. Given Spotify Technology’s peers stronger consensus rating and higher probable upside, analysts plainly believe Spotify Technology has less favorable growth aspects than its peers.
Summary
Spotify Technology peers beat Spotify Technology on 8 of the 13 factors compared.
About Spotify Technology
Spotify Technology SA is a digital music service offering music fans instant access to a world of music. The company operates through the following segments: Premium and Ad-Supported. The Premium segment provides subscribers with unlimited online and offline high-quality streaming access of music and podcasts on computers, tablets, and mobile devices, users can connect through speakers, receivers, televisions, cars, game consoles, and smart watches. It also offers a music listening experience without commercial breaks. The Ad-Supported segment provides users with limited on-demand online access of music and unlimited online access of podcasts on their computers, tablets, and compatible mobile devices. It also serves both premium subscriber acquisition channel and a robust option for users who are unable or unwilling to pay a monthly subscription fee but still want to enjoy access to a wide variety of high-quality audio content. The company was founded by Daniel Ek and Martin Lorentzon in April, 2006 and is headquartered in Luxembourg.