Financial Review: PCCW (OTCMKTS:PCWLF) vs. Alphabet (NASDAQ:GOOG)

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

Insider & Institutional Ownership

27.3% of Alphabet shares are held by institutional investors. 1.0% of PCCW shares are held by company insiders. Comparatively, 13.0% of Alphabet shares are held by company 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PCCW	N/A	N/A	N/A
Alphabet	32.81%	35.01%	25.07%

Valuation & Earnings

This table compares PCCW and Alphabet”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PCCW	N/A	N/A	N/A	N/A	N/A
Alphabet	$402.84 billion	8.98	$132.17 billion	$10.81	27.66

Alphabet has higher revenue and earnings than PCCW.

Volatility & Risk

PCCW has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500. Comparatively, Alphabet has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for PCCW and Alphabet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PCCW	0	0	0	0	0.00
Alphabet	0	3	29	9	3.15

Alphabet has a consensus price target of $345.71, suggesting a potential upside of 15.61%. Given Alphabet’s stronger consensus rating and higher probable upside, analysts plainly believe Alphabet is more favorable than PCCW.

Summary

Alphabet beats PCCW on 11 of the 11 factors compared between the two stocks.

About PCCW

PCCW Limited provides telecommunications and related services in Hong Kong, Mainland and other parts of China, Singapore, and internationally. The company’s services include local telephony, local data and broadband, mobile, enterprise solutions, international telecommunications, and satellite-based and network-based telecommunications services; outsourcing, consulting, and contact center services; and technical consulting and engineering services. It also provides free television, pay television program, and interactive multimedia services; sells advertising in various telephone directories and on the Internet; publishes directories; sells mobile handsets and accessories; distributes media content; and mobile video on demand and advertising services through OTT platform. In addition, the company offers broadcasting and related services, management and engineering support services, customer relationship management and customer contact management solutions, and media content services; and over-the-top video services under the Viu brand, as well as sells customer premises equipment and related solutions. Further, it engages in the sale, distribution, and marketing of telecommunication products and services; provision of data services; software development, systems integration, consulting, and informatization activities; the provision of computer and IP/IT related value-added services to business customers; operates customer loyalty program and online merchandise sales; and content production, talent management, and entertainment business. Additionally, the company offers e-commerce, travel, insurance, big data analytics, fintech, and health-tech services. PCCW Limited was founded in 1925 and is headquartered in Quarry Bay, Hong Kong.

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.