Financial Comparison: Spotify Technology (NYSE:SPOT) vs. Spanish Broadcasting System (NYSE:SBSAA)

Spanish Broadcasting System (OTCMKTS:SBSAA) and Spotify Technology (NYSE:SPOT) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Earnings & Valuation

This table compares Spanish Broadcasting System and Spotify Technology’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Spanish Broadcasting System $142.37 million 0.01 $16.49 million N/A N/A
Spotify Technology $6.21 billion 4.45 -$92.11 million ($0.60) -254.70

Spanish Broadcasting System has higher earnings, but lower revenue than Spotify Technology.

Profitability

This table compares Spanish Broadcasting System and Spotify Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Spanish Broadcasting System 10.92% -7.22% 1.38%
Spotify Technology 4.48% 13.23% 5.59%

Risk and Volatility

Spanish Broadcasting System has a beta of -0.21, suggesting that its share price is 121% less volatile than the S&P 500. Comparatively, Spotify Technology has a beta of 1.85, suggesting that its share price is 85% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Spanish Broadcasting System and Spotify Technology, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spanish Broadcasting System 0 0 0 0 N/A
Spotify Technology 1 3 5 1 2.60

Spotify Technology has a consensus price target of $170.25, suggesting a potential upside of 11.41%. Given Spotify Technology’s higher possible upside, analysts plainly believe Spotify Technology is more favorable than Spanish Broadcasting System.

Institutional & Insider Ownership

45.9% of Spotify Technology shares are held by institutional investors. 53.3% of Spanish Broadcasting System shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Spotify Technology beats Spanish Broadcasting System on 9 of the 13 factors compared between the two stocks.

About Spanish Broadcasting System

Spanish Broadcasting System, Inc. operates as a Spanish-language media and entertainment company in the United States. It operates in two segments, Radio and Television. The company produces and distributes Spanish-language content, including radio programs, television shows, and music and live entertainment. It owns and operates 17 radio stations in the Los Angeles, New York, Puerto Rico, Chicago, Miami, and San Francisco markets; AIRE radio networks with approximately 250 affiliate radio stations; and 6 television stations under the MegaTV brand, as well as has various MegaTV broadcasting outlets under affiliation or programming agreements. The company also produces live concerts and events; and owns bilingual Websites, including lamusica.com, Mega.tv, and various station Websites that provide content related to Latin music, entertainment, news, and culture, as well as operates the LaMusica mobile app. Its radio station programming formats include Spanish Tropical, Regional Mexican, Spanish Adult Contemporary, Top 40, and Latin Rhythmic; and television programs range from televised radio-branded shows to general entertainment programs, such as music, celebrity, debate, interviews, and personality-based shows. The company was founded in 1983 and is based in Miami, Florida.

About Spotify Technology

Spotify Technology S.A., together with its subsidiaries, provides music streaming services worldwide. It operates through two segments, Premium and Ad-Supported. The Premium segment offers commercial-free music services to subscribers comprising unlimited online and offline high-quality streaming access to its catalog. The Ad-Supported segment provides ad-supported users with limited on-demand online access to its catalog. As of December 31, 2018, the company's platform included 207 million monthly active users and 96 million premium subscribers in approximately 78 countries and territories. Spotify Technology S.A. was founded in 2006 and is based in Luxembourg City, Luxembourg.

Receive News & Ratings for Spanish Broadcasting System Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Spanish Broadcasting System and related companies with MarketBeat.com's FREE daily email newsletter.