Financial Analysis: Spotify Technology (NYSE:SPOT) and Angel Studios (NYSE:ANGX)

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

Valuation and Earnings

This table compares Angel Studios and Spotify Technology”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Angel Studios	$321.56 million	2.63	-$170.48 million	($0.93)	-4.87
Spotify Technology	$19.44 billion	5.93	$2.50 billion	$16.06	34.84

Spotify Technology has higher revenue and earnings than Angel Studios. Angel Studios is trading at a lower price-to-earnings ratio than Spotify Technology, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for Angel Studios and Spotify Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Angel Studios	1	1	4	1	2.71
Spotify Technology	0	6	17	2	2.84

Angel Studios currently has a consensus target price of $8.50, indicating a potential upside of 87.64%. Spotify Technology has a consensus target price of $609.05, indicating a potential upside of 8.86%. Given Angel Studios’ higher probable upside, equities research analysts clearly believe Angel Studios is more favorable than Spotify Technology.

Profitability

This table compares Angel Studios and Spotify Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Angel Studios	-37.44%	N/A	-66.19%
Spotify Technology	18.44%	41.39%	23.78%

Risk and Volatility

Angel Studios has a beta of -0.02, indicating that its stock price is 102% less volatile than the S&P 500. Comparatively, Spotify Technology has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500.

Insider and Institutional Ownership

38.6% of Angel Studios shares are owned by institutional investors. Comparatively, 84.1% of Spotify Technology shares are owned by institutional investors. 30.1% of Angel Studios shares are owned by insiders. Comparatively, 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.

Summary

Spotify Technology beats Angel Studios on 13 of the 15 factors compared between the two stocks.

About Angel Studios

Southport Acquisition Corporation does not have significant operations. The company focuses on effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or assets. It intends to identify business opportunities in the field of financial software space with a focus on mortgage and real estate verticals. The company was incorporated in 2021 and is based in Del Mar, California.

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.