Alphabet (NASDAQ:GOOG – Get Free Report) and Sohu.com (NASDAQ:SOHU – Get Free Report) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.
Profitability
This table compares Alphabet and Sohu.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alphabet | 32.23% | 35.00% | 25.30% |
| Sohu.com | 25.92% | -4.20% | -2.55% |
Institutional & Insider Ownership
27.3% of Alphabet shares are held by institutional investors. Comparatively, 33.0% of Sohu.com shares are held by institutional investors. 13.0% of Alphabet shares are held by insiders. Comparatively, 21.1% of Sohu.com shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Earnings and Valuation
This table compares Alphabet and Sohu.com”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alphabet | $350.02 billion | 10.84 | $100.12 billion | $10.14 | 31.02 |
| Sohu.com | $598.40 million | 0.79 | -$100.27 million | $5.01 | 3.14 |
Alphabet has higher revenue and earnings than Sohu.com. Sohu.com is trading at a lower price-to-earnings ratio than Alphabet, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for Alphabet and Sohu.com, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alphabet | 2 | 3 | 29 | 7 | 3.00 |
| Sohu.com | 0 | 1 | 2 | 0 | 2.67 |
Alphabet presently has a consensus price target of $313.04, indicating a potential downside of 0.48%. Sohu.com has a consensus price target of $20.00, indicating a potential upside of 27.31%. Given Sohu.com’s higher probable upside, analysts plainly believe Sohu.com is more favorable than Alphabet.
Summary
Alphabet beats Sohu.com 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 Sohu.com
Sohu.com Limited engages in the provision of online media, video, and game products and services on personal computers (PCs) and mobile devices in China. It operates through two segments: Sohu and Changyou. The company offers online news, information, and content services through the mobile phone application Sohu News APP, mobile portal m.sohu.com, and www.sohu.com for PCs; and online video content and services through mobile phone application Sohu Video APP and tv.sohu.com, as well as ifox, a video application for PC. It also operates Focus (www.focus.cn), which provides online real estate information and services; and 17173.com website, which provides news, electronic forums, online videos, and other online game information services to game players, as well as offers mobile game distribution services. In addition, the company offers interactive online games for PCs and mobile devices. Further, it provides paid subscription and interactive broadcasting services. The company was incorporated in 1996 and is headquartered in Beijing, China.
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