Contrasting Alphabet (GOOGL) & The Competition

Alphabet (NASDAQ: GOOGL) is one of 44 public companies in the “Computer programming, data processing, & other computer related” industry, but how does it contrast to its rivals? We will compare Alphabet to related companies based on the strength of its institutional ownership, risk, analyst recommendations, dividends, valuation, profitability and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Alphabet 11.42% 14.94% 12.20%
Alphabet Competitors -16.11% -46.83% -1.83%



Analyst Ratings

This is a breakdown of recent recommendations for Alphabet and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alphabet 1 5 37 1 2.86
Alphabet Competitors 507 1902 4621 228 2.63

Alphabet currently has a consensus target price of $1,174.09, indicating a potential upside of 13.32%. As a group, “Computer programming, data processing, & other computer related” companies have a potential upside of 7.52%. Given Alphabet’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Alphabet is more favorable than its rivals.

Volatility & Risk

Alphabet has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Alphabet’s rivals have a beta of 1.41, indicating that their average share price is 41% more volatile than the S&P 500.

Insider and Institutional Ownership

34.4% of Alphabet shares are owned by institutional investors. Comparatively, 49.1% of shares of all “Computer programming, data processing, & other computer related” companies are owned by institutional investors. 13.2% of Alphabet shares are owned by insiders. Comparatively, 15.3% of shares of all “Computer programming, data processing, & other computer related” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Alphabet and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Alphabet $110.86 billion $12.66 billion 32.33
Alphabet Competitors $6.96 billion $964.57 million 38.39

Alphabet has higher revenue and earnings than its rivals. Alphabet is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Alphabet beats its rivals on 8 of the 13 factors compared.

Alphabet Company Profile

Alphabet Inc., through its subsidiaries, provides online advertising services in the United States and internationally. The company offers performance and brand advertising services. It operates through Google and Other Bets segments. The Google segment includes principal Internet products, such as Ads, Android, Chrome, Commerce, Google Cloud, Google Maps, Google Play, Hardware, Search, and YouTube, as well as technical infrastructure and newer efforts, including Virtual Reality. This segment also offers digital content, enterprise cloud services, and hardware products, as well as other miscellaneous products and services. The Other Bets segment includes businesses, such as Access, Calico, CapitalG, GV, Nest, Verily, Waymo, and X, as well as fiber Internet and Television services. Alphabet Inc. was founded in 1998 and is headquartered in Mountain View, California.

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