Alphabet (NASDAQ:GOOGL) & Magnite (NASDAQ:MGNI) Head-To-Head Contrast

Alphabet (NASDAQ:GOOGL) and Magnite (NASDAQ:MGNI) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.

Earnings & Valuation

This table compares Alphabet and Magnite”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alphabet	$359.71 billion	5.76	$100.12 billion	$8.97	19.05
Magnite	$674.62 million	3.26	-$159.18 million	$0.20	78.00

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Alphabet and Magnite, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alphabet	0	10	26	4	2.85
Magnite	0	1	12	0	2.92

Alphabet presently has a consensus price target of $199.75, suggesting a potential upside of 16.90%. Magnite has a consensus price target of $18.92, suggesting a potential upside of 21.30%. Given Magnite’s stronger consensus rating and higher possible upside, analysts clearly believe Magnite is more favorable than Alphabet.

Institutional & Insider Ownership

40.0% of Alphabet shares are held by institutional investors. Comparatively, 73.4% of Magnite shares are held by institutional investors. 11.6% of Alphabet shares are held by insiders. Comparatively, 3.8% of Magnite shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Alphabet has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Magnite has a beta of 2.73, indicating that its stock price is 173% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alphabet	28.60%	32.49%	23.52%
Magnite	2.62%	4.64%	1.25%

Summary

Alphabet beats Magnite on 10 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 Magnite

Magnite, Inc., together with its subsidiaries, operates an independent omni-channel sell-side advertising platform in the United States and internationally. The company’s platform offers applications and services for sellers of digital advertising inventory or publishers that own and operate CTV channels, applications, websites, and other digital media properties to manage and monetize their inventory; and applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms to buy digital advertising inventory, as well as an independent marketplace that connects buyers and sellers. It markets its solutions through sales teams that operate from various locations. The company was formerly known as The Rubicon Project, Inc. and changed name to Magnite, Inc. in July 2020. Magnite, Inc. was incorporated in 2007 and is headquartered in New York, New York.