WallStSmart

Spotify Technology SA (SPOT)vsTake-Two Interactive Software Inc (TTWO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Spotify Technology SA generates 162% more annual revenue ($17.19B vs $6.56B). SPOT leads profitability with a 12.9% profit margin vs -60.5%. SPOT appears more attractively valued with a PEG of 2.17. SPOT earns a higher WallStSmart Score of 60/100 (C+).

SPOT

Buy

60

out of 100

Grade: C+

Growth: 8.0Profit: 8.0Value: 3.3Quality: 7.5
Piotroski: 4/9Altman Z: 2.66

TTWO

Avoid

34

out of 100

Grade: F

Growth: 6.0Profit: 2.0Value: 4.7Quality: 4.3
Piotroski: 4/9Altman Z: -1.94
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SPOTSignificantly Overvalued (-47.4%)

Margin of Safety

-47.4%

Fair Value

$330.58

Current Price

$443.57

$112.99 premium

UndervaluedFair: $330.58Overvalued

Intrinsic value data unavailable for TTWO.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SPOT4 strengths · Avg: 9.5/10
Return on EquityProfitability
31.9%10/10

Every $100 of equity generates 32 in profit

EPS GrowthGrowth
213.9%10/10

Earnings expanding 213.9% YoY

Market CapQuality
$106.65B9/10

Large-cap with strong market position

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

TTWO1 strengths · Avg: 8.0/10
Revenue GrowthGrowth
24.9%8/10

Revenue surging 24.9% year-over-year

Areas to Watch

SPOT3 concerns · Avg: 3.3/10
PEG RatioValuation
2.174/10

Expensive relative to growth rate

Price/BookValuation
9.3x4/10

Trading at 9.3x book value

P/E RatioValuation
42.2x2/10

Premium valuation, high expectations priced in

TTWO4 concerns · Avg: 3.0/10
PEG RatioValuation
2.264/10

Expensive relative to growth rate

Price/BookValuation
11.3x4/10

Trading at 11.3x book value

Return on EquityProfitability
-86.2%2/10

ROE of -86.2% — below average capital efficiency

EPS GrowthGrowth
-49.7%2/10

Earnings declined 49.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : SPOT

The strongest argument for SPOT centers on Return on Equity, EPS Growth, Market Cap.

Bull Case : TTWO

The strongest argument for TTWO centers on Revenue Growth. Revenue growth of 24.9% demonstrates continued momentum.

Bear Case : SPOT

The primary concerns for SPOT are PEG Ratio, Price/Book, P/E Ratio. A P/E of 42.2x leaves little room for execution misses.

Bear Case : TTWO

The primary concerns for TTWO are PEG Ratio, Price/Book, Return on Equity.

Key Dynamics to Monitor

SPOT profiles as a value stock while TTWO is a growth play — different risk/reward profiles.

SPOT carries more volatility with a beta of 1.70 — expect wider price swings.

TTWO is growing revenue faster at 24.9% — sustainability is the question.

SPOT generates stronger free cash flow (834M), providing more financial flexibility.

Bottom Line

SPOT scores higher overall (60/100 vs 34/100). Both earn "Buy" and "Avoid" 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.

Take-Two Interactive Software Inc

COMMUNICATION SERVICES · ELECTRONIC GAMING & MULTIMEDIA · USA

Take-Two Interactive Software, Inc. is an American video game holding company based in New York City. The company owns two major publishing labels, Rockstar Games and 2K, which operate internal game development studios.

Want to dig deeper into these stocks?