Comparing Alphabet (GOOGL) & GigaMedia (GIGM)

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

Volatility and Risk

Alphabet has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, GigaMedia has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Alphabet and GigaMedia, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alphabet 0 2 27 0 2.93
GigaMedia 0 0 0 0 N/A

Alphabet currently has a consensus price target of $1,367.18, suggesting a potential upside of 26.73%. Given Alphabet’s higher probable upside, analysts clearly believe Alphabet is more favorable than GigaMedia.

Insider & Institutional Ownership

33.3% of Alphabet shares are held by institutional investors. Comparatively, 5.3% of GigaMedia shares are held by institutional investors. 13.2% of Alphabet shares are held by company insiders. Comparatively, 1.0% of GigaMedia shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Alphabet and GigaMedia’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alphabet $110.86 billion 6.77 $12.66 billion $32.05 33.66
GigaMedia $11.60 million 2.79 $1.08 million N/A N/A

Alphabet has higher revenue and earnings than GigaMedia.

Profitability

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

Net Margins Return on Equity Return on Assets
Alphabet 14.45% 19.40% 14.95%
GigaMedia -21.56% -5.49% -5.07%

Summary

Alphabet beats GigaMedia on 11 of the 11 factors compared between the two stocks.

About Alphabet

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 GigaMedia

GigaMedia Limited provides digital entertainment services in Taiwan, Hong Kong, and Macau. The company offers mobile and browser-based casual games through FunTown-branded platform. Its portfolio of PC-based casual games include MahJong, a traditional Chinese tile game; sports games, Web-based RPG, and mobile games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and various casual games. The company also provides Tales Runner, a multi-player online obstacle running game in which players competes by running, jumping, dashing and using items. In addition, it owns and operates GigaCloud, a provider of cloud computing solutions and related services focused on the cloud services market for SMEs in Taiwan. GigaMedia Limited was founded in 1997 and is headquartered in Taipei, Taiwan.

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