Contrasting Alphabet (GOOG) and Its Peers

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

Profitability

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This table compares Alphabet and its peers’ 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% -45.92% -1.15%



Insider and Institutional Ownership

34.8% of Alphabet shares are owned by institutional investors. Comparatively, 49.3% of shares of all “Computer programming, data processing, & other computer related” companies are owned by institutional investors. 13.9% of Alphabet shares are owned by company insiders. Comparatively, 13.9% of shares of all “Computer programming, data processing, & other computer related” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Alphabet has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Alphabet’s peers have a beta of 1.41, suggesting that their average share price is 41% more volatile than the S&P 500.

Earnings and Valuation

This table compares Alphabet and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Alphabet $110.86 billion $12.66 billion 33.48
Alphabet Competitors $6.96 billion $964.57 million 40.46

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

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alphabet 1 6 33 0 2.80
Alphabet Competitors 506 1907 4630 229 2.63

Alphabet presently has a consensus price target of $1,085.73, suggesting a potential upside of 1.18%. As a group, “Computer programming, data processing, & other computer related” companies have a potential upside of 6.94%. Given Alphabet’s peers higher probable upside, analysts clearly believe Alphabet has less favorable growth aspects than its peers.

Summary

Alphabet beats its peers 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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