Critical Contrast: Alphabet (NASDAQ:GOOGL) versus DeNA (OTCMKTS:DNACF)

DeNA (OTCMKTS:DNACF) and Alphabet (NASDAQ:GOOGL) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Risk and Volatility

DeNA has a beta of -0.27, meaning that its share price is 127% less volatile than the S&P 500. Comparatively, Alphabet has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Institutional and Insider Ownership

40.0% of Alphabet shares are held by institutional investors. 11.6% of Alphabet shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DeNA	$1.08 billion	1.67	$159.67 million	$2.68	6.02
Alphabet	$350.02 billion	10.81	$100.12 billion	$10.14	30.92

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

Analyst Ratings

This is a summary of current ratings and price targets for DeNA and Alphabet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DeNA	0	0	0	0	0.00
Alphabet	0	6	41	4	2.96

Alphabet has a consensus target price of $315.90, suggesting a potential upside of 0.76%. Given Alphabet’s stronger consensus rating and higher possible upside, analysts clearly believe Alphabet is more favorable than DeNA.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DeNA	25.00%	16.72%	11.29%
Alphabet	32.23%	35.00%	25.30%

Summary

Alphabet beats DeNA on 15 of the 15 factors compared between the two stocks.

About DeNA

DeNA Co., Ltd. develops and operates mobile and online services worldwide. It operates Mobage, an entertainment platform; Yahoo! Mobage, which offers social games for PC browsers; AndApp, a platform that allows users to play mobile game apps on PC browsers under the same user account; Pococha, a social live streaming community; and IRIAM, an app which allows to livestream as an anime character. The company also operates SHOWROOM, a virtual stage where fans can watch their artists perform live while interacting with them in real time; MYCODE, a direct-to-consumer genetic testing service; kencom, which supports health insurance societies to manage their members’ health data; Haretoke, a web service which provides daily support for millennial women; Caradamo that offers diet support; and ONSEI, an app that uses AI to check for changes in cognitive function. In addition, it operates MENKYO, which enables cognitive function test for elderly drivers seeking license renewal; SHINRI-ADAS, a cognitive functional test; MRI-TAISEKI, a system that analyses brain DICOM images; Join, a communication app for medical professionals; MySOS, a life-saving and health support app with health and medical record for the user and their family; and DENA SPORTS GROUP, Yokohama DeNA Baystars, Kawasaki Brave Thunders, S.C.SAGAMIHARA, and DeNA Athletics Elite sports teams. Further, the company operates Mobaoku, which allows users to manage their auction items and bids from mobile phones; Anyca, a mobile app for peer-to-peer car sharing; SOMPO DE NORU, a car leasing service; GO, a taxi dispatch app; DRIVE CHART, an accident reduction support service; anone, a c ommunication service for seniors; dot-i, a security system; Coopel, a cloud robotic process automation service; PLAYBACK 9, a NFT service; Easy Ride, a robo-vehicle mobility service; Manga Box, a weekly manga magazine app; PICKFIVE, a NFT card game; and NFT collections. The company was incorporated in 1999 and is based in Tokyo, Japan.

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.