Google vs Meta | Which Investment is Better?

Summary

This video compares tech giants Alphabet (Google) and Meta (Facebook) based on investor interest, financial health, growth, dividends, and valuation. Alphabet leads with a market cap of $2.2 trillion compared to Meta's $1.3 trillion. While Meta wins in insider ownership and return on invested capital, Alphabet surpasses in net profit margin, share buyback, and debt repayment. Both show strong revenue growth, but Meta outperforms in free cash flow and earnings per share growth. Alphabet offers a higher dividend yield, but both have low payout ratios. In terms of valuation, Alphabet appears less overpriced than Meta. The final score is a tie, highlighting each company's strengths and weaknesses.

Takeaways

• 📈 Alphabet (Google's parent company) has a market cap of $2.2 trillion, while Meta (Facebook's parent company) has a market cap of $1.3 trillion.
• 🤝 Individual insiders own 10.3% of Alphabet and 13.7% of Meta, indicating that Meta's management has more skin in the game.
• 🔍 Both Alphabet and Meta have significant super investor backing, with 25 and 23 super investors respectively.
• 💹 Meta has a higher return on invested capital (32.1%) compared to Alphabet (17.3%).
• 📊 Alphabet has a higher net profit margin (25.9%) than Meta (19.9%).
• 💸 Alphabet has bought back 7.4% of its shares over the last 10 years, while Meta has only bought back 1.3%.
• 💼 Alphabet can pay back its debt in 0.2 years, compared to Meta's 0.4 years, indicating better financial health for Alphabet.
• 📊 Meta has higher revenue growth (32.9%) and earnings per share growth (37.9%) compared to Alphabet (18.7% and 20% respectively).
• 💰 Alphabet has a higher dividend yield (0.5%) than Meta (0.1%), but both companies have very low yields.
• 📊 Alphabet's average intrinsic value per share is around $90, while Meta's is around $128, with current share prices significantly higher for both companies.

Q & A

What are the market capitalizations of Alphabet and Meta?

Alphabet has a market capitalization of $2.2 trillion, while Meta's market capitalization is $1.3 trillion.

Which company has a higher percentage of shares owned by individual insiders?

Meta has a higher percentage of shares owned by individual insiders at 13.7% compared to Alphabet's 10.3%.

Are individual insiders currently buying shares of Alphabet or Meta?

Neither Alphabet nor Meta have individual insiders buying shares in recent months.

How many super investors own shares in Alphabet compared to Meta?

There are 25 super investors owning shares of Alphabet and 23 super investors owning shares of Meta.

What is the return on invested capital for Alphabet and Meta?

Alphabet has a return on invested capital of 17.3%, while Meta has a higher return at 32.1%.

Which company has a higher net profit margin, Alphabet or Meta?

Alphabet has a higher net profit margin at 25.9% compared to Meta's 19.9%.

How does Alphabet's share buyback percentage compare to Meta's over the last 10 years?

Alphabet bought back 7.4% of its shares in the last 10 years, which is significantly more than Meta's 1.3%.

How quickly can Alphabet and Meta pay back their debts?

Alphabet can pay back its debt in 0.2 years, while Meta takes 0.4 years.

Which company has a higher revenue growth rate, Alphabet or Meta?

Meta has a higher revenue growth rate at 32.9% compared to Alphabet's 18.7%.

What is the dividend yield for Alphabet and Meta?

The dividend yield for Alphabet is 0.5% and for Meta it is 0.1%.

Which company is less overpriced based on the average intrinsic value per share?

Alphabet is less overpriced compared to Meta, with a percentage difference of -49.5% for Alphabet and -73.9% for Meta.

What is the final score for Alphabet and Meta based on the analysis?

The final score is a draw with both Alphabet and Meta having six points each.