Financial Analysis: Viomi Technology (NASDAQ:VIOT) and Alphabet (NASDAQ:GOOG)

Viomi Technology (NASDAQ:VIOT) and Alphabet (NASDAQ:GOOG) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Insider and Institutional Ownership

1.2% of Viomi Technology shares are owned by institutional investors. Comparatively, 27.3% of Alphabet shares are owned by institutional investors. 34.3% of Viomi Technology shares are owned by insiders. Comparatively, 13.0% of Alphabet shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Viomi Technology and Alphabet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viomi Technology	$2.43 billion	0.03	$20.26 million	N/A	N/A
Alphabet	$402.84 billion	9.45	$132.17 billion	$10.81	29.12

Alphabet has higher revenue and earnings than Viomi Technology.

Profitability

This table compares Viomi Technology and Alphabet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Viomi Technology	N/A	N/A	N/A
Alphabet	32.81%	35.01%	25.07%

Analyst Recommendations

This is a breakdown of current ratings for Viomi Technology and Alphabet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viomi Technology	1	0	0	0	1.00
Alphabet	0	3	29	9	3.15

Alphabet has a consensus target price of $345.71, indicating a potential upside of 9.84%. Given Alphabet’s stronger consensus rating and higher possible upside, analysts clearly believe Alphabet is more favorable than Viomi Technology.

Volatility & Risk

Viomi Technology has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500. Comparatively, Alphabet has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Dividends

Viomi Technology pays an annual dividend of $0.09 per share and has a dividend yield of 9.0%. Alphabet pays an annual dividend of $0.84 per share and has a dividend yield of 0.3%. Alphabet pays out 7.8% of its earnings in the form of a dividend. Alphabet has increased its dividend for 1 consecutive years.

Summary

Alphabet beats Viomi Technology on 14 of the 17 factors compared between the two stocks.

About Viomi Technology

Viomi Technology Co., Ltd, through its subsidiaries, develops and sells Internet-of-things-enabled (IoT-enabled) smart home products in the People's Republic of China. The company offers IoT-enabled smart home products, including smart water purification systems; smart kitchen products, such as refrigerators, oven steamers, dishwashers, range hoods, and gas stoves; and other smart products comprising air conditioning systems, washing machines, water heaters, smart water kettles, sweeper robots, smart locks, and other smart devices, as well as blenders. It also provides a suite of complementary consumable products and small appliances, such as portable fans, rice cookers, water quality meters, water filter pitchers, stainless-steel insulated water bottles, smart toilet, and food waste disposals; and value-added services. The company sells its products directly to consumers through its online platform, Viomi mobile app, and e-commerce channels, including Youpin, JD.com, Tmall, Pinduoduo, and others, as well as offline experience stores. Viomi Technology Co., Ltd has a strategic partnership with Xiaomi Corporation. The company was founded in 2014 and is headquartered in Guangzhou, China.

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.