Baidu, Inc. (BIDU) vs Alphabet Inc. (GOOG)

Baidu, Inc. and Alphabet Inc. are both Internet Content & Information companies. Alphabet Inc. is the larger, with a market value of $4.17T against $24.1B — 172.9× the size. Baidu, Inc. has negative trailing earnings, so its P/E is not meaningful; Alphabet Inc. trades at 16.9×. Alphabet Inc. grew revenue faster over the last twelve months: 20.1% against 2.43%. Alphabet Inc. has the higher net margin (54.8% vs −2.38%) and the higher return on invested capital (18.6% vs −2.17%). Across the 20 metrics below, Alphabet Inc. leads on 14 and Baidu, Inc. on 6.

Valuation

Metric BIDU GOOG Internet Content & Information median
P/E n/m 16.94 10.24
P/S 1.59 9.30 0.87
P/B 0.75 6.66 1.32
Price to free cash flow 9.84 77.80 8.85
EV/EBITDA n/m 23.14 8.86
EV/Sales 0.91 8.97 1.15
Earnings yield (1.74%) 5.90% (1.58%)
Free cash flow yield 10.16% 1.29% 2.32%

Profitability

Metric BIDU GOOG Internet Content & Information median
Gross margin 40.92% 60.90% 66.84%
Operating margin (5.36%) 33.11% (3.41%)
Net margin (2.38%) 54.75% (3.02%)
Free cash flow margin 0.00% 11.95% 1.75%
Return on equity 0.00% 49.55% 0.00%
Return on assets (0.67%) 34.29% (0.36%)
Return on invested capital (2.17%) 18.60% 0.00%

Growth

Metric BIDU GOOG Internet Content & Information median
Revenue growth (TTM) 2.43% 20.05% 2.65%
EPS growth (last fiscal year) (74.82%) 34.45% —
Revenue growth, 5-year CAGR 2.38% 17.15% 9.73%
Net income growth, 5-year CAGR (25.34%) 26.83% 0.00%

Health

Metric BIDU GOOG Internet Content & Information median
Debt to equity 0.29 0.15 0.01
Current ratio 2.33 2.72 1.82
Net debt to EBITDA (2.46) (0.53) (0.48)

Dividend

Metric BIDU GOOG Internet Content & Information median
Dividend yield — — 3.19%
Payout ratio 0.00 0.00 0.00

Size

Metric BIDU GOOG Internet Content & Information median
Market cap 24.13b 4.17t 283.68m

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