Square Enix (OTCMKTS:SQNXF) versus Alphabet (NASDAQ:GOOG) Critical Survey

Alphabet (NASDAQ:GOOG) and Square Enix (OTCMKTS:SQNXF) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Risk and Volatility

Alphabet has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Square Enix has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500.

Institutional and Insider Ownership

27.3% of Alphabet shares are owned by institutional investors. 13.0% of Alphabet shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Alphabet and Square Enix’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%
Square Enix	5.92%	5.88%	4.72%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alphabet	$385.48 billion	8.67	$100.12 billion	$10.14	27.32
Square Enix	$2.13 billion	3.33	$161.13 million	$0.34	57.94

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Alphabet and Square Enix, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alphabet	3	4	26	6	2.90
Square Enix	2	0	0	0	1.00

Alphabet presently has a consensus price target of $324.81, indicating a potential upside of 17.27%. Given Alphabet’s stronger consensus rating and higher possible upside, research analysts plainly believe Alphabet is more favorable than Square Enix.

Summary

Alphabet beats Square Enix on 14 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 Square Enix

Square Enix Holdings Co., Ltd. operates in the content and service businesses in Japan and internationally. It operates through Digital Entertainment Business, Amusement Business, Publishing Business, and Rights Property Business. The company plans, develops, sells, and manages digital entertainment content primarily in the form of computer games. It is also involved in the operation of amusement facilities; and planning, development, manufacture, sale, and rental of arcade game machines and related products for amusement facilities. In addition, the company publishes and licenses comic books, magazines, game-related books, periodicals, etc. Further, it plans, produces, distributes, and licenses secondary works; and offers content under the SQUARE ENIX PRODUCTS brand; and stuffed toys and utility goods under the SQEX TOYS brand. The company was incorporated in 1975 and is headquartered in Tokyo, Japan.