Alphabet (NASDAQ: GOOGL) and Yandex N.V. (NASDAQ:YNDX) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitabiliy, valuation, dividends, analyst recommendations and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Alphabet 19.49% 13.66% 11.40%
Yandex N.V. 9.50% 15.51% 10.41%

Earnings & Valuation

This table compares Alphabet and Yandex N.V.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Alphabet $99.28 billion 6.45 $32.25 billion $27.55 33.52
Yandex N.V. $2.71 billion 3.51 $708.67 million $0.40 73.20

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

Institutional & Insider Ownership

34.3% of Alphabet shares are held by institutional investors. Comparatively, 70.4% of Yandex N.V. shares are held by institutional investors. 13.2% of Alphabet shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Alphabet has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Yandex N.V. has a beta of 2.86, indicating that its stock price is 186% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Alphabet and Yandex N.V., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alphabet 1 6 40 1 2.85
Yandex N.V. 1 1 7 0 2.67

Alphabet presently has a consensus target price of $1,047.72, suggesting a potential upside of 13.44%. Yandex N.V. has a consensus target price of $33.03, suggesting a potential upside of 12.79%. Given Alphabet’s stronger consensus rating and higher probable upside, analysts clearly believe Alphabet is more favorable than Yandex N.V..

Summary

Alphabet beats Yandex N.V. on 11 of the 15 factors compared between the two stocks.

About Alphabet

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.

About Yandex N.V.

Yandex N.V. is an Internet and technology company, and operates Internet search engine. The Company’s segments include Search and Portal, E-commerce, Taxi, Classifieds and Experimental businesses. The Company’s Search and Portal segment offers a range of services in Russia, Ukraine, Belarus and Kazakhstan, among which are search, location-based, personalized and mobile services, that enable the Company’s users to find relevant and objective information to communicate and connect over the Internet, from both their desktops and mobile devices. The Company’s search engine offers access to a range of information available online. The Company’s Yandex.Market gives retailers a platform to reach customers seeking specific retailer, product or price information. As of December 31, 2016, Yandex.Taxi was operating in 46 cities across Russia, Georgia, Armenia, Kazakhstan, Belarus and Ukraine. The Company’s Classifieds business unit includes Auto.ru, Yandex.Realty, Yandex.Jobs and Yandex.Travel.

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