iQIYI (NASDAQ:IQ – Get Free Report) and Alphabet (NASDAQ:GOOG – Get Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.
Valuation and Earnings
This table compares iQIYI and Alphabet”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| iQIYI | $3.80 billion | 0.31 | -$29.50 million | ($0.10) | -12.30 |
| Alphabet | $402.84 billion | 10.57 | $132.17 billion | $13.11 | 26.80 |
Risk and Volatility
iQIYI has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500. Comparatively, Alphabet has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.
Institutional & Insider Ownership
52.7% of iQIYI shares are held by institutional investors. Comparatively, 27.3% of Alphabet shares are held by institutional investors. 57.8% of iQIYI shares are held by company insiders. Comparatively, 13.0% of Alphabet shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares iQIYI and Alphabet’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| iQIYI | -2.61% | -4.72% | -1.36% |
| Alphabet | 37.92% | 38.99% | 27.41% |
Analyst Ratings
This is a breakdown of current recommendations for iQIYI and Alphabet, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| iQIYI | 2 | 1 | 2 | 0 | 2.00 |
| Alphabet | 0 | 4 | 27 | 5 | 3.03 |
iQIYI currently has a consensus target price of $2.55, indicating a potential upside of 107.05%. Alphabet has a consensus target price of $383.44, indicating a potential upside of 9.13%. Given iQIYI’s higher probable upside, research analysts clearly believe iQIYI is more favorable than Alphabet.
Summary
Alphabet beats iQIYI on 12 of the 15 factors compared between the two stocks.
About iQIYI
iQIYI, Inc., together with its subsidiaries, provides online entertainment video services in the People's Republic of China. It offers various products and services, including online video, online games, online literature, animations, and other products. The company operates a platform that provides a collection of internet video content, such as professionally produced content licensed from professional content providers and self-produced content. It also offers membership, online advertising, content distribution, and live broadcasting services. In addition, the company operates iQIYI Show, a live broadcasting platform that enables users to follow their favorite hosts and shows in real time through live broadcasting; and iQIYI Lite that offers an easy and quick access to the personalized videos based on their user preferences. Further, it is involved in the talent agency and IP licensing activities, as well as engages in developing a video community app. The company was formerly known as Qiyi.com, Inc. and changed its name to iQIYI, Inc. in November 2017. iQIYI, Inc. was incorporated in 2009 and is headquartered in Beijing, China. iQIYI, Inc. is a subsidiary of Baidu, Inc.
About Alphabet
Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play and YouTube; and devices, as well as in the provision of YouTube consumer subscription services. The Google Cloud segment offers infrastructure, cybersecurity, databases, analytics, AI, and other services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells healthcare-related and internet services. The company was incorporated in 1998 and is headquartered in Mountain View, California.
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