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 $4.17T against $9.2B — 452.9× the size. Snap 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 12.7%. Alphabet Inc. has the higher net margin (54.8% vs −4.90%) and the higher return on invested capital (18.6% vs −7.22%). Across the 20 metrics below, Alphabet Inc. leads on 11 and Snap Inc. on 9.

Valuation

Metric GOOG SNAP Internet Content & Information median
P/E 16.94 n/m 10.24
P/S 9.30 1.42 0.87
P/B 6.66 4.68 1.32
Price to free cash flow 77.80 12.97 8.85
EV/EBITDA 23.14 n/m 8.86
EV/Sales 8.97 1.56 1.15
Earnings yield 5.90% (3.32%) (1.58%)
Free cash flow yield 1.29% 7.71% 2.32%

Profitability

Metric GOOG SNAP Internet Content & Information median
Gross margin 60.90% 57.33% 66.84%
Operating margin 33.11% (5.10%) (3.41%)
Net margin 54.75% (4.90%) (3.02%)
Free cash flow margin 11.95% 11.11% 1.75%
Return on equity 49.55% (15.58%) 0.00%
Return on assets 34.29% (4.19%) (0.36%)
Return on invested capital 18.60% (7.22%) 0.00%

Growth

Metric GOOG SNAP Internet Content & Information median
Revenue growth (TTM) 20.05% 12.65% 2.65%
EPS growth (last fiscal year) 34.45% 35.71% —
Revenue growth, 5-year CAGR 17.15% 18.80% 9.73%
Net income growth, 5-year CAGR 26.83% 0.00% 0.00%

Health

Metric GOOG SNAP Internet Content & Information median
Debt to equity 0.15 1.83 0.01
Current ratio 2.72 2.94 1.82
Net debt to EBITDA (0.53) (1.65) (0.48)

Dividend

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

Size

Metric GOOG SNAP Internet Content & Information median
Market cap 4.17t 9.21b 283.68m

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