Head to Head Review: Alphabet (NASDAQ:GOOG) vs. AdTheorent (NASDAQ:ADTH)

Alphabet (NASDAQ:GOOG) and AdTheorent (NASDAQ:ADTH) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alphabet	24.01%	27.22%	19.02%
AdTheorent	N/A	0.07%	0.06%

Analyst Ratings

This is a breakdown of current recommendations for Alphabet and AdTheorent, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alphabet	0	0	6	0	3.00
AdTheorent	0	2	2	0	2.50

Alphabet presently has a consensus price target of $159.86, suggesting a potential upside of 2.47%. AdTheorent has a consensus price target of $4.69, suggesting a potential upside of 46.03%. Given AdTheorent’s higher possible upside, analysts plainly believe AdTheorent is more favorable than Alphabet.

Valuation and Earnings

This table compares Alphabet and AdTheorent’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alphabet	$307.39 billion	6.31	$73.80 billion	$5.80	26.90
AdTheorent	$170.81 million	1.71	$10,000.00	($0.01)	-321.00

Alphabet has higher revenue and earnings than AdTheorent. AdTheorent is trading at a lower price-to-earnings ratio than Alphabet, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Alphabet has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, AdTheorent has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.

Institutional and Insider Ownership

27.3% of Alphabet shares are owned by institutional investors. Comparatively, 37.7% of AdTheorent shares are owned by institutional investors. 13.0% of Alphabet shares are owned by insiders. Comparatively, 7.1% of AdTheorent shares are owned 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 AdTheorent on 11 of the 14 factors compared between the two stocks.

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.

About AdTheorent

AdTheorent Holding Company, Inc., a digital media platform, provides programmatic digital advertising services for advertising agency and brand customers in the United States, Canada, and internationally. It uses machine learning and advanced data science to organize, analyze, and operationalize non-sensitive data to deliver real-world value for customers. The company offers predictive targeting solutions across various customer industry verticals and consumer screens, including customized targeting, measurement, and analytical services; and location-based targeting and geo-intelligence solutions. AdTheorent Holding Company, Inc. was founded in 2012 and is headquartered in New York, New York.