Sohu.com (NASDAQ:SOHU – Get Free Report) and Alphabet (NASDAQ:GOOG – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.
Volatility & Risk
Sohu.com has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, Alphabet has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.
Profitability
This table compares Sohu.com and Alphabet’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sohu.com | 25.92% | -4.20% | -2.55% |
| Alphabet | 32.23% | 35.00% | 25.30% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sohu.com | 0 | 1 | 2 | 0 | 2.67 |
| Alphabet | 2 | 3 | 29 | 7 | 3.00 |
Sohu.com presently has a consensus target price of $20.00, indicating a potential upside of 27.31%. Alphabet has a consensus target price of $313.04, indicating a potential downside of 0.48%. Given Sohu.com’s higher possible upside, research analysts clearly believe Sohu.com is more favorable than Alphabet.
Valuation and Earnings
This table compares Sohu.com and Alphabet”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sohu.com | $598.40 million | 0.79 | -$100.27 million | $5.01 | 3.14 |
| Alphabet | $350.02 billion | 10.84 | $100.12 billion | $10.14 | 31.02 |
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.
Insider & Institutional Ownership
33.0% of Sohu.com shares are held by institutional investors. Comparatively, 27.3% of Alphabet shares are held by institutional investors. 21.1% of Sohu.com shares are held by insiders. Comparatively, 13.0% of Alphabet shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Alphabet beats Sohu.com on 12 of the 15 factors compared between the two stocks.
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.
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.
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