Contrasting Spotify Technology (NYSE:SPOT) & NetEnt AB (publ) (OTCMKTS:NTNTY)

NetEnt AB (publ) (OTCMKTS:NTNTY) and Spotify Technology (NYSE:SPOT) are both communication services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Profitability

This table compares NetEnt AB (publ) and Spotify Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NetEnt AB (publ)	N/A	N/A	N/A
Spotify Technology	18.44%	41.39%	23.78%

Insider and Institutional Ownership

84.1% of Spotify Technology shares are owned by institutional investors. 0.4% of Spotify Technology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares NetEnt AB (publ) and Spotify Technology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NetEnt AB (publ)	N/A	N/A	N/A	N/A	N/A
Spotify Technology	$19.44 billion	5.74	$2.50 billion	$16.06	33.75

Spotify Technology has higher revenue and earnings than NetEnt AB (publ).

Analyst Ratings

This is a breakdown of current recommendations and price targets for NetEnt AB (publ) and Spotify Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NetEnt AB (publ)	0	0	0	0	0.00
Spotify Technology	0	6	17	2	2.84

Spotify Technology has a consensus price target of $609.05, suggesting a potential upside of 12.35%. Given Spotify Technology’s stronger consensus rating and higher probable upside, analysts clearly believe Spotify Technology is more favorable than NetEnt AB (publ).

Summary

Spotify Technology beats NetEnt AB (publ) on 10 of the 10 factors compared between the two stocks.

About NetEnt AB (publ)

NetEnt is a provider of premium gaming solutions to the world’s most successful online casino operators.

About Spotify Technology

Spotify Technology S.A., together with its subsidiaries, provides audio streaming subscription services worldwide. It operates through two segments, Premium and Ad-Supported. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers. This segment sells directly to the end users. The Ad-Supported segment provides on-demand online access to its catalog of music and unlimited online access to the catalog of podcasts to its users on their computers, tablets, and compatible mobile devices. The company also offers sales, distribution and marketing, contract research and development, and customer and other support services. Spotify Technology S.A. was incorporated in 2006 and is based in Luxembourg City, Luxembourg.