Alphabet (NASDAQ: GOOG) and Alphabet (NASDAQ:GOOGL) are both large-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitabiliy, dividends, analyst recommendations, earnings, institutional ownership and valuation.

Risk and Volatility

Alphabet has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Alphabet has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Alphabet and Alphabet, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alphabet 1 6 36 0 2.81
Alphabet 1 6 38 0 2.82

Alphabet presently has a consensus price target of $991.45, indicating a potential upside of 3.71%. Alphabet has a consensus price target of $1,017.42, indicating a potential upside of 4.15%. Given Alphabet’s stronger consensus rating and higher probable upside, analysts plainly believe Alphabet is more favorable than Alphabet.

Valuation & Earnings

This table compares Alphabet and Alphabet’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Alphabet $94.77 billion 6.98 $31.21 billion $29.54 32.36
Alphabet $94.77 billion 7.13 $31.21 billion $29.54 33.07

Alphabet is trading at a lower price-to-earnings ratio than Alphabet, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

34.6% of Alphabet shares are held by institutional investors. Comparatively, 34.3% of Alphabet shares are held by institutional investors. 13.9% of Alphabet shares are held by insiders. Comparatively, 13.2% of Alphabet shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Alphabet and Alphabet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alphabet 21.84% 15.16% 12.65%
Alphabet 21.84% 15.16% 12.65%

Summary

Alphabet beats Alphabet on 6 of the 8 factors compared between the two stocks.

Alphabet Company Profile

Alphabet Inc. is a holding company. The Company’s businesses include Google Inc. (Google) and its Internet products, such as Access, Calico, CapitalG, GV, Nest, Verily, Waymo and X. The Company’s segments include Google and Other Bets. The Google segment includes its Internet products, such as Search, Ads, Commerce, Maps, YouTube, Google Cloud, Android, Chrome and Google Play, as well as its hardware initiatives. The Google segment is engaged in advertising, sales of digital content, applications and cloud offerings, and sales of hardware products. The Other Bets segment is engaged in the sales of Internet and television services through Google Fiber, sales of Nest products and services, and licensing and research and development (R&D) services through Verily. It offers Google Assistant, which allows users to type or talk with Google; Google Maps, which helps users navigate to a store, and Google Photos, which helps users store and organize all of their photos.

Alphabet Company Profile

Alphabet Inc. is a holding company. The Company’s businesses include Google Inc. (Google) and its Internet products, such as Access, Calico, CapitalG, GV, Nest, Verily, Waymo and X. The Company’s segments include Google and Other Bets. The Google segment includes its Internet products, such as Search, Ads, Commerce, Maps, YouTube, Google Cloud, Android, Chrome and Google Play, as well as its hardware initiatives. The Google segment is engaged in advertising, sales of digital content, applications and cloud offerings, and sales of hardware products. The Other Bets segment is engaged in the sales of Internet and television services through Google Fiber, sales of Nest products and services, and licensing and research and development (R&D) services through Verily. It offers Google Assistant, which allows users to type or talk with Google; Google Maps, which helps users navigate to a store, and Google Photos, which helps users store and organize all of their photos.

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