Alphabet Inc. (GOOG) vs Snap Inc. (SNAP)

Alphabet Inc. and Snap Inc. are both Internet Content & Information companies. Alphabet Inc. is the larger, with a market value of $3.45T against $8.6B — 401.2× the size. Snap Inc. has negative trailing earnings, so its P/E is not meaningful; Alphabet Inc. trades at 14.6×. Alphabet Inc. grew revenue faster over the last twelve months: 22.2% against 13.8%. Alphabet Inc. has the higher net margin (50.0% vs −2.30%) and the higher return on invested capital (18.3% vs −2.52%). Across the 21 metrics below, Alphabet Inc. leads on 11 and Snap Inc. on 10.

Valuation

Metric GOOG SNAP Internet Content & Information median
P/E 14.57 n/m 12.38
P/S 7.35 1.33 0.93
P/B 5.25 3.91 1.24
Price to free cash flow 175.37 11.39 10.76
EV/EBITDA 17.97 165.29 10.74
EV/Sales 7.05 1.44 1.20
Earnings yield 6.86% (1.75%) (1.71%)
Free cash flow yield 0.57% 8.78% 4.26%

Profitability

Metric GOOG SNAP Internet Content & Information median
Gross margin 60.86% 59.11% 63.25%
Operating margin 33.32% (1.81%) (1.87%)
Net margin 49.95% (2.30%) (1.37%)
Free cash flow margin 4.19% 11.83% 3.47%
Return on equity 44.98% (6.78%) (1.19%)
Return on assets 30.56% (2.00%) 0.00%
Return on invested capital 18.25% (2.52%) 0.00%

Growth

Metric GOOG SNAP Internet Content & Information median
Revenue growth (TTM) 22.21% 13.76% 6.92%
EPS growth (last fiscal year) 34.45% 35.71% 34.37%
Revenue growth, 5-year CAGR 17.15% 18.80% 10.46%
Net income growth, 5-year CAGR 26.83% 0.00% 0.00%

Health

Metric GOOG SNAP Internet Content & Information median
Debt to equity 0.18 1.56 0.01
Current ratio 2.79 3.36 1.84
Net debt to EBITDA (0.53) (1.65) (0.53)

Dividend

Metric GOOG SNAP Internet Content & Information median
Dividend yield 0.30% — 1.19%
Payout ratio 0.04 — 0.27

Size

Metric GOOG SNAP Internet Content & Information median
Market cap 3.45t 8.61b 693.23m

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