Reviewing Internap (INAP) and Alphabet Inc Class A (GOOGL)


Internap (NASDAQ: INAP) and Alphabet Inc Class A (NASDAQ:GOOGL) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Insider and Institutional Ownership

80.9% of Internap shares are owned by institutional investors. Comparatively, 33.5% of Alphabet Inc Class A shares are owned by institutional investors. 5.9% of Internap shares are owned by insiders. Comparatively, 13.2% of Alphabet Inc Class A shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Internap has a beta of 2.08, suggesting that its stock price is 108% more volatile than the S&P 500. Comparatively, Alphabet Inc Class A has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Internap and Alphabet Inc Class A, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Internap 0 1 1 2 3.25
Alphabet Inc Class A 0 4 31 0 2.89

Internap presently has a consensus target price of $23.00, suggesting a potential upside of 72.54%. Alphabet Inc Class A has a consensus target price of $1,306.54, suggesting a potential upside of 5.52%. Given Internap’s stronger consensus rating and higher probable upside, equities analysts plainly believe Internap is more favorable than Alphabet Inc Class A.

Profitability

This table compares Internap and Alphabet Inc Class A’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Internap -18.10% -665.82% -6.23%
Alphabet Inc Class A 13.16% 18.24% 14.32%

Earnings and Valuation

This table compares Internap and Alphabet Inc Class A’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Internap $280.72 million 1.00 -$45.34 million ($1.55) -8.60
Alphabet Inc Class A $110.86 billion 7.76 $12.66 billion $32.05 38.63

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

Summary

Alphabet Inc Class A beats Internap on 10 of the 15 factors compared between the two stocks.

About Internap

Internap Corporation provides Internet infrastructure services. It operates through two business segments, INAP COLO and INAP CLOUD. The INAP COLO segment offers colocation services, including physical space within data centers and related services, such as power, interconnection, environmental controls, monitoring, and security; and Internet protocol (IP) connectivity services comprising its patented Performance IP and content delivery network services, IP routing hardware and software platforms, and Managed Internet Route Optimizer controllers. This segment offers its colocation services through 56 data centers and 97 POPs worldwide. The INAP CLOUD segment provides hosted Infrastructure-as-a-Service as a cloud platform or through managed hosting that includes the provision and maintenance of hardware, data center infrastructure, and interconnection that enables its customers to own and manage their software applications and content. This segment offers cloud and managed hosting services, which comprise compute and storage services, as well as a single tenant infrastructure environment through an integrated platform that includes servers, storage, and network. The company serves various industries, including healthcare; advertising technology; financial; technology infrastructure; and gaming and software. The company was formerly known as Internap Network Services Corporation and changed its name to Internap Corporation in November 2014. Internap Corporation was founded in 1996 and is headquartered in Atlanta, Georgia.

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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