Analyzing Spotify Technology (SPOT) & Urban One (UONEK)

Spotify Technology (NYSE:SPOT) and Urban One (NASDAQ:UONEK) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Spotify Technology and Urban One, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spotify Technology 0 0 3 0 3.00
Urban One 0 0 0 0 N/A

Spotify Technology currently has a consensus price target of $172.33, suggesting a potential upside of 30.32%. Given Spotify Technology’s higher probable upside, research analysts plainly believe Spotify Technology is more favorable than Urban One.

Profitability

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

Net Margins Return on Equity Return on Assets
Spotify Technology -1.08% 13.72% 5.62%
Urban One 35.83% 146.85% 13.25%

Institutional and Insider Ownership

46.3% of Spotify Technology shares are owned by institutional investors. Comparatively, 30.3% of Urban One shares are owned by institutional investors. 50.5% of Urban One shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Spotify Technology and Urban One’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Spotify Technology $6.21 billion 3.79 -$92.11 million ($0.60) -220.40
Urban One $439.10 million 0.18 $141.00 million N/A N/A

Urban One has lower revenue, but higher earnings than Spotify Technology.

Summary

Urban One beats Spotify Technology on 6 of the 11 factors compared between the two stocks.

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.

About Urban One

Urban One, Inc., together with its subsidiaries, operates as an urban-oriented multi-media company in the United States. The company operates through four segments: Radio Broadcasting, Reach Media, Digital, and Cable Television. The Radio Broadcasting segment includes radio broadcasting operations that primarily target African-American and urban listeners. As of March 6, 2019, it owned and/or operated 60 broadcast stations under the Radio One tradename located in 15 urban markets. The Reach Media segment operates syndicated programming, including the Tom Joyner Morning Show, the Rickey Smiley Morning Show, the Russ Parr Morning Show, and the DL Hughley Show. This segment also operates BlackAmericaWeb.com, an African-American targeted news and entertainment Website, as well as other event related activities. The Digital segment owns iOne Digital, a digital platform serving the African-American community through social content, news, information, and entertainment Websites, including Cassius, Bossip, HipHopWired, and MadameNoire digital platforms and brands. The Cable Television segment operates TV One, an African-American targeted cable television network. The company was formerly known as Radio One, Inc. and changed its name to Urban One, Inc. in May 2017. Urban One, Inc. was founded in 1980 and is based in Silver Spring, Maryland.

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