Analyzing Trivago N.V. ADS (NASDAQ:TRVG) and Alphabet (NASDAQ:GOOGL)

Alphabet (NASDAQ:GOOGL) and Trivago N.V. ADS (NASDAQ:TRVG) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Valuation and Earnings

This table compares Alphabet and Trivago N.V. ADS”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alphabet	$402.84 billion	10.89	$132.17 billion	$13.11	27.61
Trivago N.V. ADS	$620.90 million	0.61	$12.69 million	$0.05	106.80

Alphabet has higher revenue and earnings than Trivago N.V. ADS. Alphabet is trading at a lower price-to-earnings ratio than Trivago N.V. ADS, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Alphabet and Trivago N.V. ADS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alphabet	0	5	47	2	2.94
Trivago N.V. ADS	1	5	0	0	1.83

Alphabet presently has a consensus target price of $413.54, suggesting a potential upside of 14.26%. Trivago N.V. ADS has a consensus target price of $3.44, suggesting a potential downside of 35.63%. Given Alphabet’s stronger consensus rating and higher possible upside, equities analysts clearly believe Alphabet is more favorable than Trivago N.V. ADS.

Volatility and Risk

Alphabet has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Trivago N.V. ADS has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Insider & Institutional Ownership

40.0% of Alphabet shares are held by institutional investors. Comparatively, 4.5% of Trivago N.V. ADS shares are held by institutional investors. 11.6% of Alphabet shares are held by insiders. Comparatively, 6.5% of Trivago N.V. ADS shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Alphabet and Trivago N.V. ADS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alphabet	37.92%	38.99%	27.41%
Trivago N.V. ADS	2.10%	7.39%	4.25%

Summary

Alphabet beats Trivago N.V. ADS on 14 of the 15 factors compared between the two stocks.

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.

About Trivago N.V. ADS

trivago N.V., together with its subsidiaries, operates a hotel and accommodation search platform in the United States, Germany, the United Kingdom, Canada, Japan, and internationally. It offers an online meta-search for hotels and accommodation through online travel agencies, hotel chains, and independent hotels. The company provides travel search for different types of accommodations, such as hotels, vacation rentals, and apartments; and enable advertiser access through website and apps. In addition, it offers access to its platform through various localized websites and apps in various languages. The company was incorporated in 2005 and is headquartered in Düsseldorf, Germany. trivago N.V. operates as a subsidiary of Expedia Lodging Partner Services Sarl.