Analyzing Alphabet (NASDAQ:GOOG) & Uber Technologies (NYSE:UBER)

Uber Technologies (NYSE:UBER) and Alphabet (NASDAQ:GOOG) are both large-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.

Earnings and Valuation

This table compares Uber Technologies and Alphabet”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Uber Technologies	$43.98 billion	3.84	$9.86 billion	$7.78	10.44
Alphabet	$350.02 billion	10.86	$100.12 billion	$10.14	31.06

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

Insider and Institutional Ownership

80.2% of Uber Technologies shares are held by institutional investors. Comparatively, 27.3% of Alphabet shares are held by institutional investors. 3.8% of Uber Technologies shares are held by insiders. Comparatively, 13.0% of Alphabet shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Uber Technologies	33.54%	68.17%	29.80%
Alphabet	32.23%	35.00%	25.30%

Volatility and Risk

Uber Technologies has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Alphabet has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Uber Technologies and Alphabet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Uber Technologies	0	9	30	2	2.83
Alphabet	2	3	29	7	3.00

Uber Technologies currently has a consensus price target of $108.43, suggesting a potential upside of 33.49%. Alphabet has a consensus price target of $313.04, suggesting a potential downside of 0.61%. Given Uber Technologies’ higher probable upside, research analysts plainly believe Uber Technologies is more favorable than Alphabet.

Summary

Alphabet beats Uber Technologies on 8 of the 15 factors compared between the two stocks.

About Uber Technologies

Uber Technologies, Inc. develops and operates proprietary technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia excluding China and Southeast Asia. It operates through three segments: Mobility, Delivery, and Freight. The Mobility segment connects consumers with a range of transportation modalities, such as ridesharing, carsharing, micromobility, rentals, public transit, taxis, and other modalities; and offers riders in a variety of vehicle types, as well as financial partnerships products and advertising services. The Delivery segment allows to search for and discover restaurants to grocery, alcohol, convenience, and other retails; order a meal or other items; and Uber direct, a white-label Delivery-as-a-Service for retailers and restaurants, as well as advertising. The Freight segment manages transportation and logistics network, which connects shippers and carriers in digital marketplace including carriers upfronts, pricing, and shipment booking; and provides on-demand platform to automate logistics end-to-end transactions for small-and medium-sized business to global enterprises. The company was formerly known as Ubercab, Inc. and changed its name to Uber Technologies, Inc. in February 2011. Uber Technologies, Inc. was founded in 2009 and is headquartered in San Francisco, California.

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.