Alphabet Inc Class A (NASDAQ: GOOGL) and Stars Group (NASDAQ:TSG) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.
Risk and Volatility
Alphabet Inc Class A has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Stars Group has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500.
Earnings & Valuation
This table compares Alphabet Inc Class A and Stars Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alphabet Inc Class A||$110.86 billion||7.33||$12.66 billion||$32.05||36.48|
|Stars Group||$1.31 billion||4.34||$259.23 million||$2.25||16.58|
Alphabet Inc Class A has higher revenue and earnings than Stars Group. Stars Group 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.
Institutional and Insider Ownership
33.3% of Alphabet Inc Class A shares are held by institutional investors. Comparatively, 64.3% of Stars Group shares are held by institutional investors. 13.2% of Alphabet Inc Class A shares are held 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.
This table compares Alphabet Inc Class A and Stars Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alphabet Inc Class A||14.19%||15.58%||12.48%|
This is a breakdown of recent recommendations and price targets for Alphabet Inc Class A and Stars Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alphabet Inc Class A||0||4||35||1||2.93|
Alphabet Inc Class A presently has a consensus target price of $1,204.55, suggesting a potential upside of 3.02%. Given Alphabet Inc Class A’s stronger consensus rating and higher probable upside, research analysts plainly believe Alphabet Inc Class A is more favorable than Stars Group.
Alphabet Inc Class A beats Stars Group on 11 of the 15 factors compared between the two stocks.
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.
About Stars Group
The Stars Group Inc. provides technology-based products and services to gaming and interactive entertainment industries in Canada and internationally. It owns and operates gaming and related interactive entertainment businesses under the PokerStars, PokerStars Casino, BetStars, Full Tilt, the PokerStars Players No Limit Hold’em Championship, European Poker Tour, PokerStars Caribbean Adventure, Latin American Poker Tour, Asia Pacific Poker Tour, PokerStars Festival, and PokerStars MEGASTACK live poker tour and event brands, The company was formerly known as Amaya, Inc. and changed its name to The Stars Group Inc. in August 2017. The Stars Group Inc. was founded in 2004 and is headquartered in Toronto, Canada.
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