Spotify Technology (NYSE:SPOT – Get Free Report) and Definitive Healthcare (NASDAQ:DH – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.
Insider & Institutional Ownership
84.1% of Spotify Technology shares are held by institutional investors. Comparatively, 98.7% of Definitive Healthcare shares are held by institutional investors. 0.4% of Spotify Technology shares are held by insiders. Comparatively, 17.1% of Definitive Healthcare shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Spotify Technology and Definitive Healthcare”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Spotify Technology | $17.53 billion | 5.78 | $2.50 billion | $12.55 | 39.24 |
| Definitive Healthcare | $241.52 million | 0.40 | -$138.93 million | ($1.62) | -0.56 |
Spotify Technology has higher revenue and earnings than Definitive Healthcare. Definitive Healthcare is trading at a lower price-to-earnings ratio than Spotify Technology, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Spotify Technology has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, Definitive Healthcare has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for Spotify Technology and Definitive Healthcare, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Spotify Technology | 0 | 6 | 21 | 2 | 2.86 |
| Definitive Healthcare | 3 | 3 | 1 | 1 | 2.00 |
Spotify Technology currently has a consensus target price of $655.92, suggesting a potential upside of 33.18%. Definitive Healthcare has a consensus target price of $2.77, suggesting a potential upside of 204.93%. Given Definitive Healthcare’s higher possible upside, analysts plainly believe Definitive Healthcare is more favorable than Spotify Technology.
Profitability
This table compares Spotify Technology and Definitive Healthcare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Spotify Technology | 15.56% | 35.73% | 19.53% |
| Definitive Healthcare | -76.04% | 4.04% | 1.99% |
Summary
Spotify Technology beats Definitive Healthcare on 12 of the 15 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 Definitive Healthcare
Definitive Healthcare Corp., together with its subsidiaries, provides software as a service (SaaS) healthcare commercial intelligence platform in the United States and internationally. Its SaaS platform provides information on healthcare providers and their activities to help its customers from product development to go-to-market planning, and sales and marketing execution. The company's platform consists of various functional areas, such as sales, marketing, clinical research and product development, strategy, talent acquisition, and physician network management. It serves biopharmaceutical and medical device companies, healthcare information technology companies, and healthcare providers; and other diversified companies comprising staffing and commercial real estate firms, financial institutions, and other organizations in the healthcare ecosystem. Definitive Healthcare Corp. was founded in 2011 and is headquartered in Framingham, Massachusetts.
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