Head-To-Head Contrast: Alphabet (NASDAQ:GOOGL) versus Xunlei (NASDAQ:XNET)

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

Valuation & Earnings

This table compares Alphabet and Xunlei”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alphabet	$385.48 billion	8.86	$100.12 billion	$10.14	27.85
Xunlei	$324.40 million	1.58	$1.22 million	$11.38	0.72

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

Risk & Volatility

Alphabet has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Xunlei has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Alphabet and Xunlei, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alphabet	0	9	36	3	2.88
Xunlei	0	1	0	0	2.00

Alphabet currently has a consensus target price of $303.09, indicating a potential upside of 7.33%. Given Alphabet’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Alphabet is more favorable than Xunlei.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alphabet	32.23%	36.08%	26.11%
Xunlei	202.62%	4.50%	3.35%

Insider and Institutional Ownership

40.0% of Alphabet shares are held by institutional investors. Comparatively, 5.1% of Xunlei shares are held by institutional investors. 11.6% of Alphabet shares are held by insiders. Comparatively, 21.7% of Xunlei shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Alphabet beats Xunlei on 12 of the 15 factors compared between the two stocks.

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.

About Xunlei

Xunlei Limited, together with its subsidiaries, operates an internet platform for digital media content in the People's Republic of China. Its platform is based on cloud technology that enables users to access, store, manage, and consume digital media content. The company offers Xunlei Accelerator, which enables users to accelerate digital transmission over the internet; mobile acceleration plug-in, which provides mobile device users with benefits of download speed acceleration and download success rate improvements; and subscription services that offer users premium services through Green Channel and Fast Bird products. It also provides Mobile Xunlei, a mobile application that allows users to search, download, consume, and store digital media content; Xunlei Media Player, which supports online and offline play of digital media content, as well as simultaneous play of digital media content while it is being transmitted by Xunlei Accelerator; online games through online game website and mobile app; advertising services; live streaming products, including video and audio livestreaming; and develops software and computer software, as well as other internet value-added services. In addition, the company offers cloud computing services through OneThing Cloud, and StellarCloud; and hardware for edging computing, such as OneThing Edge Cube, and OneThing Edge Atom. Further it offers ThunderChain, a blockchain infrastructure product that enables its users to develop and manage blockchain applications. The company was formerly known as Giganology Limited and changed its name to Xunlei Limited in January 2011. Xunlei Limited was founded in 2003 and is headquartered in Shenzhen, the People's Republic of China.