System1 (NYSE:SST) versus Alphabet (NASDAQ:GOOGL) Head-To-Head Contrast

System1 (NYSE:SSTGet Free Report) and Alphabet (NASDAQ:GOOGLGet Free Report) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, dividends, risk, institutional ownership and valuation.

Risk and Volatility

System1 has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, Alphabet has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Profitability

This table compares System1 and Alphabet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
System1 -49.23% -42.08% -12.99%
Alphabet 25.90% 29.52% 20.74%

Insider and Institutional Ownership

87.5% of System1 shares are owned by institutional investors. Comparatively, 40.0% of Alphabet shares are owned by institutional investors. 28.3% of System1 shares are owned by insiders. Comparatively, 11.6% of Alphabet shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations for System1 and Alphabet, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
System1 0 1 1 0 2.50
Alphabet 0 5 30 1 2.89

System1 presently has a consensus price target of $3.50, indicating a potential upside of 131.79%. Alphabet has a consensus price target of $193.26, indicating a potential upside of 7.59%. Given System1’s higher probable upside, research analysts clearly believe System1 is more favorable than Alphabet.

Earnings and Valuation

This table compares System1 and Alphabet’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
System1 $401.97 million 0.34 -$227.22 million ($2.27) -0.67
Alphabet $307.39 billion 7.22 $73.80 billion $6.52 27.55

Alphabet has higher revenue and earnings than System1. System1 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 System1 on 11 of the 15 factors compared between the two stocks.

About System1

(Get Free Report)

System1, Inc. provides omnichannel customer acquisition platform services through its proprietary responsive acquisition marketing platform in the United States, the United Kingdom, Canada, the Netherlands, and internationally. It operates through two segments: Owned and Operated Advertising, and Partner Network. The company engages in the provision of acquiring traffic to its owned and operated websites, as well as revenue-sharing arrangements and related services. It also operates MapQuest, a web-based navigation service that delivers turn-by-turn direction services to users; Info.com, a metasearch engine that consumers can use to search for relevant information; HowStuffWorks, a commercial website focused on helping people solve problems in their daily lives by using various types of digital media to easily breakdown and explain complex concepts, topics, terminology and mechanisms; Startpage, a private search engine that allows users to browse and search the Internet in complete privacy; and CouponFollow for coupon destinations for online shoppers, as well as ActiveBeat and Infospace. In addition, the company provides antivirus software solutions, which offers customers a single packaged solution that provides protection and reporting to the end users. The company is based in Los Angeles, California.

About Alphabet

(Get Free Report)

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.

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