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 superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

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%

Insider and Institutional Ownership

38.6% of Angel Studios shares are held by institutional investors. Comparatively, 84.1% of Spotify Technology shares are held by institutional investors. 30.1% of Angel Studios shares are held by company insiders. Comparatively, 0.4% of Spotify Technology shares are held by company 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 Angel Studios 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
Angel Studios	$321.56 million	2.65	-$170.48 million	($0.93)	-4.90
Spotify Technology	$19.44 billion	5.74	$2.50 billion	$16.06	33.75

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 recent ratings and target prices for Angel Studios and Spotify Technology, as provided by MarketBeat.com.

	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 price target of $8.50, suggesting a potential upside of 86.40%. Spotify Technology has a consensus price target of $609.05, suggesting a potential upside of 12.35%. Given Angel Studios’ higher probable upside, research analysts plainly believe Angel Studios is more favorable than Spotify Technology.

Volatility & Risk

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

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.