Critical Comparison: Weibo (WB) and Alphabet Inc Class A (GOOGL)
Weibo (NASDAQ: GOOGL) and Alphabet Inc Class A (NASDAQ:GOOGL) are both large-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.
Insider & Institutional Ownership
23.8% of Weibo shares are held by institutional investors. Comparatively, 33.5% of Alphabet Inc Class A shares are held by institutional investors. 13.2% of Alphabet Inc Class A shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Weibo and Alphabet Inc Class A’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|$1.15 billion||14.41||$352.59 million||$1.56||48.01|
|Alphabet Inc Class A||$110.86 billion||7.63||$12.66 billion||$32.05||37.94|
Alphabet Inc Class A has higher revenue and earnings than Weibo. Alphabet Inc Class A is trading at a lower price-to-earnings ratio than Weibo, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Weibo has a beta of 2.42, indicating that its share price is 142% more volatile than the S&P 500. Comparatively, Alphabet Inc Class A has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.
This table compares Weibo and Alphabet Inc Class A’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alphabet Inc Class A||13.16%||18.24%||14.32%|
This is a summary of current recommendations for Weibo and Alphabet Inc Class A, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alphabet Inc Class A||0||4||31||0||2.89|
Weibo presently has a consensus price target of $134.14, indicating a potential upside of 79.10%. Alphabet Inc Class A has a consensus price target of $1,308.01, indicating a potential upside of 7.58%. Given Weibo’s stronger consensus rating and higher probable upside, analysts clearly believe Weibo is more favorable than Alphabet Inc Class A.
Weibo beats Alphabet Inc Class A on 8 of the 14 factors compared between the two stocks.
Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, distribute, and discover Chinese-language content. It operates through two segments, Advertising and Marketing Services, and Value-Added Services. The company offers self-expression products that enable its users to express themselves on its platform; social products to promote social interaction between users on its platform; and discovery products to help users discover content on its platform. It also provides third-party online games, including role-play, card, and strategy games, as well as various services and functions to VIP members. In addition, the company offers advertising and marketing solutions, such as social display advertisements; and promoted feeds, accounts, and trends enable its customers to promote their brands and conduct marketing activities. Further, it provides copyright content, such as TV channels, online video Websites, and operators with copyright content through traffic resource exchange and content traffic sharing; MCNs and other self-media to manage and provide services to content creators on Weibo, such as MCNs, unions, and e-commerce partners; other app developers an application platform which allows users to log into third-party applications; and Weibo Wallet products that enable platform partners to conduct interest generation activities on Weibo. The company was formerly known as T.CN Corporation and changed its name to Weibo Corporation in 2012. The company was founded in 2009 and is headquartered in Beijing, China.
About Alphabet Inc Class A
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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