Alphabet (NASDAQ:GOOGL – Get Free Report) and KE (NYSE:BEKE – Get Free Report) are both large-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.
Volatility & Risk
Alphabet has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, KE has a beta of -0.76, meaning that its stock price is 176% less volatile than the S&P 500.
Insider and Institutional Ownership
40.0% of Alphabet shares are owned by institutional investors. Comparatively, 39.3% of KE shares are owned by institutional investors. 11.6% of Alphabet shares are owned by insiders. Comparatively, 6.8% of KE shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alphabet | 0 | 10 | 29 | 4 | 2.86 |
| KE | 0 | 0 | 7 | 0 | 3.00 |
Alphabet presently has a consensus price target of $211.5263, indicating a potential upside of 2.64%. KE has a consensus price target of $24.9667, indicating a potential upside of 34.99%. Given KE’s stronger consensus rating and higher possible upside, analysts clearly believe KE is more favorable than Alphabet.
Dividends
Alphabet pays an annual dividend of $0.84 per share and has a dividend yield of 0.4%. KE pays an annual dividend of $0.31 per share and has a dividend yield of 1.7%. Alphabet pays out 8.9% of its earnings in the form of a dividend. KE pays out 58.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Alphabet has raised its dividend for 1 consecutive years.
Earnings and Valuation
This table compares Alphabet and KE”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alphabet | $350.02 billion | 7.12 | $100.12 billion | $9.39 | 21.95 |
| KE | $100.41 billion | 0.22 | $556.89 million | $0.53 | 34.90 |
Alphabet has higher revenue and earnings than KE. Alphabet is trading at a lower price-to-earnings ratio than KE, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Alphabet and KE’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alphabet | 31.12% | 34.31% | 24.88% |
| KE | 4.48% | 6.75% | 3.74% |
Summary
Alphabet beats KE on 14 of the 18 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 KE
KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. It operates through four segments: Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services. The company operates Beike, an integrated online and offline platform for housing transactions and services; Lianjia, a real estate brokerage branded store; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers; and software-as-a-service systems. It also owns the Deyou brand for connected brokerage stores; and other brands. In addition, the company offers contract, secure payment, escrow, and other services. KE Holdings Inc. was founded in 2001 and is headquartered in Beijing, the People's Republic of China.
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