Alphabet Inc Class C (NYSE: FDS) and FactSet Research Systems (NYSE:FDS) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Profitability

This table compares Alphabet Inc Class C and FactSet Research Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alphabet Inc Class C 13.16% 18.24% 14.32%
FactSet Research Systems 19.37% 55.91% 22.72%

Valuation and Earnings

This table compares Alphabet Inc Class C and FactSet Research Systems’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alphabet Inc Class C $110.86 billion 7.66 $12.66 billion $32.05 38.09
FactSet Research Systems $1.22 billion 7.05 $258.25 million $7.31 30.69

Alphabet Inc Class C has higher revenue and earnings than FactSet Research Systems. FactSet Research Systems is trading at a lower price-to-earnings ratio than Alphabet Inc Class C, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

34.3% of Alphabet Inc Class C shares are owned by institutional investors. Comparatively, 91.4% of FactSet Research Systems shares are owned by institutional investors. 13.1% of Alphabet Inc Class C shares are owned by insiders. Comparatively, 2.7% of FactSet Research Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Alphabet Inc Class C has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, FactSet Research Systems has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Dividends

FactSet Research Systems pays an annual dividend of $2.56 per share and has a dividend yield of 1.1%. Alphabet Inc Class C does not pay a dividend. FactSet Research Systems pays out 35.0% of its earnings in the form of a dividend. FactSet Research Systems has increased its dividend for 12 consecutive years.

Analyst Ratings

This is a summary of current ratings and target prices for Alphabet Inc Class C and FactSet Research Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alphabet Inc Class C 0 2 26 0 2.93
FactSet Research Systems 2 10 1 0 1.92

Alphabet Inc Class C currently has a consensus price target of $1,250.00, indicating a potential upside of 2.40%. FactSet Research Systems has a consensus price target of $193.67, indicating a potential downside of 13.66%. Given Alphabet Inc Class C’s stronger consensus rating and higher probable upside, equities analysts clearly believe Alphabet Inc Class C is more favorable than FactSet Research Systems.

Summary

Alphabet Inc Class C beats FactSet Research Systems on 11 of the 17 factors compared between the two stocks.

Alphabet Inc Class C 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.

FactSet Research Systems Company Profile

FactSet Research Systems Inc. provides integrated financial information and analytical applications to the investment community in the United States, Europe, and the Asia Pacific. It delivers insight and information to financial investment professionals through its analytics, services, contents, and technologies. The company integrates datasets and analytics across asset classes, and supports the workflow of buy-side and sell-side clients. Its applications suite offers tools and resources, including company and industry analyses, full screening tools, portfolio analysis, risk profiles, alpha-testing, portfolio optimization, and research management solutions. The company enables its clients to streamline real-time data and historical information, including quotes, estimates, news, and commentary, as well as offers unique and third-party content through desktop, wireless, and off-platform solutions. It serves portfolio managers, wealth managers, research and performance analysts, risk managers, research professionals, investment bankers, and fixed income professionals. FactSet Research Systems Inc. was founded in 1978 and is headquartered in Norwalk, Connecticut.

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