Alphabet (NASDAQ:GOOGL – Get Free Report) and Rumble (NASDAQ:RUM – Get Free Report) are both communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.
Profitability
This table compares Alphabet and Rumble’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alphabet | 54.77% | 51.32% | 35.42% |
| Rumble | -134.60% | -22.77% | -16.34% |
Volatility and Risk
Alphabet has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Rumble has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alphabet | 0 | 4 | 46 | 5 | 3.02 |
| Rumble | 2 | 1 | 0 | 0 | 1.33 |
Alphabet presently has a consensus target price of $425.74, suggesting a potential upside of 22.47%. Rumble has a consensus target price of $25.00, suggesting a potential upside of 313.91%. Given Rumble’s higher probable upside, analysts plainly believe Rumble is more favorable than Alphabet.
Insider and Institutional Ownership
40.0% of Alphabet shares are owned by institutional investors. Comparatively, 26.2% of Rumble shares are owned by institutional investors. 11.6% of Alphabet shares are owned by insiders. Comparatively, 45.1% of Rumble shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Alphabet and Rumble”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alphabet | $402.84 billion | 10.55 | $132.17 billion | $19.91 | 17.46 |
| Rumble | $100.62 million | 29.76 | -$81.83 million | ($0.59) | -10.24 |
Alphabet has higher revenue and earnings than Rumble. Rumble is trading at a lower price-to-earnings ratio than Alphabet, indicating that it is currently the more affordable of the two stocks.
Summary
Alphabet beats Rumble on 11 of the 15 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 Rumble
Rumble Inc. operates video sharing platforms in the United States, Canada, and internationally. The company operates rumble.com, a free-to-use video sharing and livestreaming platform where users can subscribe to channels to stay in touch with creators, and access video on-demand (VOD) and live content streamed by creators. It also operates locals.com, a platform where users can access free content and purchase subscriptions to support creators and access exclusive content in creator communities; Rumble Streaming Marketplace, a patent-pending application designed to enable a first-of-its-kind livestreaming and monetization service for creators; and Rumble Advertising Center (RAC), an online advertising management exchange. The company was founded in 2013 and is headquartered in Longboat Key, Florida.
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