Home Depot (HD) closed at $302.51, up 0.01%, while Spotify (SPOT) fell 3.40% to $528.84, a decline of $18.59. Home Depot’s market capitalisation is about $302 billion; Spotify’s is roughly $109 billion.
In fiscal 2025 Home Depot posted revenue of $164.7 billion, a 3.2% year‑over‑year increase, and net income of $14.2 billion, giving an 8.6% net margin. Spotify reported $19.8 billion in revenue, up 9.7%, and net income of $2.6 billion, translating to a 12.9% net margin.
Home Depot’s gross margin stood at 31.22% with a price‑to‑earnings (P/E) multiple of 21.17 and earnings per share (EPS) of $14.29. Spotify’s gross margin was slightly higher at 32.70%, its P/E was 27.95 and EPS $16.06; the streaming company does not pay a dividend.
Balance‑sheet metrics show Home Depot’s debt‑to‑equity ratio at about 5.1× (February 2026) versus Spotify’s modest 0.3× (December 2025). Correspondingly, Spotify’s current ratio of 1.7× exceeds Home Depot’s 1.1×, indicating stronger short‑term liquidity.
Free cash flow diverged sharply: Home Depot generated roughly $12.6 billion, while Spotify produced about $3.3 billion, both supporting ongoing investment—store infrastructure for the retailer and technology and international expansion for the streamer.
Risk profiles differ. Home Depot faces exposure to the housing market, interest‑rate swings, cybersecurity threats and litigation over AI‑powered parking‑lot surveillance. Spotify contends with intense competition from Apple, Amazon and other tech giants and must continually renegotiate licensing agreements with record labels.
Valuation‑wise, Home Depot looks cheaper on a P/E basis, whereas Spotify commands a premium that reflects its faster top‑line growth and lighter capital requirements. The analyst concludes that Spotify’s accelerating revenue, improving margins and a premium‑subscriber base that has just crossed 300 million make it the more compelling long‑term investment.