Head-To-Head Review: Spotify Technology (NYSE:SPOT) vs. NetEnt AB (publ) (OTCMKTS:NTNTY)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spotify Technology	$18.11 billion	6.18	$2.50 billion	$16.06	33.85
NetEnt AB (publ)	N/A	N/A	N/A	N/A	N/A

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

Insider and Institutional Ownership

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

Profitability

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

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

Analyst Ratings

This is a summary of current ratings and price targets for Spotify Technology and NetEnt AB (publ), as provided by MarketBeat.

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

Spotify Technology presently has a consensus target price of $609.05, suggesting a potential upside of 12.02%. Given Spotify Technology’s stronger consensus rating and higher possible upside, analysts plainly 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 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.

About NetEnt AB (publ)

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