WallStSmart

MediaAlpha Inc. (MAX)vsSpotify Technology SA (SPOT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Spotify Technology SA generates 1379% more annual revenue ($18.11B vs $1.22B). SPOT leads profitability with a 18.4% profit margin vs 7.9%. MAX trades at a lower P/E of 7.7x. SPOT earns a higher WallStSmart Score of 64/100 (C+).

MAX

Hold

50

out of 100

Grade: D+

Growth: 9.3Profit: 7.5Value: 8.3Quality: 3.0
Piotroski: 3/9Altman Z: 0.37

SPOT

Buy

64

out of 100

Grade: C+

Growth: 8.0Profit: 8.0Value: 4.0Quality: 8.0
Piotroski: 4/9Altman Z: 2.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MAXUndervalued (+59.6%)

Margin of Safety

+59.6%

Fair Value

$19.00

Current Price

$11.45

$7.55 discount

UndervaluedFair: $19.00Overvalued
SPOTSignificantly Overvalued (-58.4%)

Margin of Safety

-58.4%

Fair Value

$307.58

Current Price

$558.26

$250.68 premium

UndervaluedFair: $307.58Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MAX4 strengths · Avg: 9.5/10
P/E RatioValuation
7.7x10/10

Attractively priced relative to earnings

Return on EquityProfitability
342.2%10/10

Every $100 of equity generates 342 in profit

EPS GrowthGrowth
1412.0%10/10

Earnings expanding 1412.0% YoY

Revenue GrowthGrowth
25.9%8/10

Revenue surging 25.9% year-over-year

SPOT4 strengths · Avg: 9.8/10
Return on EquityProfitability
35.6%10/10

Every $100 of equity generates 36 in profit

EPS GrowthGrowth
222.4%10/10

Earnings expanding 222.4% YoY

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

Market CapQuality
$111.52B9/10

Large-cap with strong market position

Areas to Watch

MAX4 concerns · Avg: 2.8/10
Market CapQuality
$647.36M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
7.9%3/10

7.9% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
21.2x2/10

Trading at 21.2x book value

SPOT3 concerns · Avg: 4.0/10
PEG RatioValuation
1.594/10

Expensive relative to growth rate

P/E RatioValuation
29.4x4/10

Moderate valuation

Price/BookValuation
11.7x4/10

Trading at 11.7x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : MAX

The strongest argument for MAX centers on P/E Ratio, Return on Equity, EPS Growth. Revenue growth of 25.9% demonstrates continued momentum.

Bull Case : SPOT

The strongest argument for SPOT centers on Return on Equity, EPS Growth, Debt/Equity. Profitability is solid with margins at 18.4% and operating margin at 13.7%. Revenue growth of 13.9% demonstrates continued momentum.

Bear Case : MAX

The primary concerns for MAX are Market Cap, Profit Margin, Piotroski F-Score. Debt-to-equity of 6.22 is elevated, increasing financial risk.

Bear Case : SPOT

The primary concerns for SPOT are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

MAX profiles as a growth stock while SPOT is a mature play — different risk/reward profiles.

SPOT carries more volatility with a beta of 1.59 — expect wider price swings.

MAX is growing revenue faster at 25.9% — sustainability is the question.

SPOT generates stronger free cash flow (910M), providing more financial flexibility.

Bottom Line

SPOT scores higher overall (64/100 vs 50/100), backed by strong 18.4% margins and 13.9% revenue growth. MAX offers better value entry with a 59.6% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

MediaAlpha Inc.

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

MediaAlpha, Inc., operates an insurance customer acquisition platform in the United States. The company is headquartered in Los Angeles, California.

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Spotify Technology SA

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

Spotify Technology SA, provides audio streaming services worldwide. The company is headquartered in Luxembourg, Luxembourg.

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