WallStSmart

Spotify Technology SA (SPOT)vsTIM Participacoes SA (TIMB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TIM Participacoes SA generates 51% more annual revenue ($27.40B vs $18.11B). SPOT leads profitability with a 18.4% profit margin vs 15.8%. TIMB appears more attractively valued with a PEG of 1.42. TIMB earns a higher WallStSmart Score of 66/100 (B-).

SPOT

Strong Buy

66

out of 100

Grade: B-

Growth: 8.0Profit: 8.0Value: 4.7Quality: 8.0
Piotroski: 4/9Altman Z: 2.66

TIMB

Strong Buy

66

out of 100

Grade: B-

Growth: 5.3Profit: 7.5Value: 6.7Quality: 5.5
Piotroski: 6/9Altman Z: 1.50
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SPOTSignificantly Overvalued (-58.1%)

Margin of Safety

-58.1%

Fair Value

$308.12

Current Price

$501.30

$193.18 premium

UndervaluedFair: $308.12Overvalued
TIMBOvervalued (-8.2%)

Margin of Safety

-8.2%

Fair Value

$25.06

Current Price

$18.93

$6.13 premium

UndervaluedFair: $25.06Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SPOT4 strengths · Avg: 9.8/10
Return on EquityProfitability
39.8%10/10

Every $100 of equity generates 40 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
$104.73B9/10

Large-cap with strong market position

TIMB4 strengths · Avg: 8.5/10
P/E RatioValuation
10.9x10/10

Attractively priced relative to earnings

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
24.7%8/10

Strong operational efficiency at 24.7%

Free Cash FlowQuality
$2.18B8/10

Generating 2.2B in free cash flow

Areas to Watch

SPOT2 concerns · Avg: 4.0/10
P/E RatioValuation
27.9x4/10

Moderate valuation

Price/BookValuation
10.5x4/10

Trading at 10.5x book value

TIMB2 concerns · Avg: 4.0/10
EPS GrowthGrowth
2.5%4/10

2.5% earnings growth

Altman Z-ScoreHealth
1.504/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : TIMB

The strongest argument for TIMB centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 15.8% and operating margin at 24.7%. PEG of 1.42 suggests the stock is reasonably priced for its growth.

Bear Case : SPOT

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

Bear Case : TIMB

The primary concerns for TIMB are EPS Growth, Altman Z-Score.

Key Dynamics to Monitor

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

SPOT is growing revenue faster at 13.9% — sustainability is the question.

TIMB generates stronger free cash flow (2.2B), providing more financial flexibility.

Monitor INTERNET CONTENT & INFORMATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SPOT scores higher overall (66/100 vs 66/100), backed by strong 18.4% margins and 13.9% revenue growth. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Spotify Technology SA

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

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

TIM Participacoes SA

COMMUNICATION SERVICES · TELECOM SERVICES · USA

TIM SA is a telecommunications company in Brazil. The company is headquartered in Rio de Janeiro, Brazil.

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