Contrasting Rightmove (OTCMKTS:RTMVF) and Alphabet (NASDAQ:GOOGL)

Rightmove (OTCMKTS:RTMVF) and Alphabet (NASDAQ:GOOGL) are both communication services companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.

Analyst Ratings

This is a summary of current ratings and recommmendations for Rightmove and Alphabet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rightmove	0	0	0	0	N/A
Alphabet	0	7	28	1	2.83

Alphabet has a consensus target price of $202.81, suggesting a potential upside of 28.98%. Given Alphabet’s higher probable upside, analysts plainly believe Alphabet is more favorable than Rightmove.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rightmove	N/A	N/A	N/A
Alphabet	26.70%	30.49%	21.63%

Dividends

Rightmove pays an annual dividend of $0.28 per share and has a dividend yield of 4.1%. Alphabet pays an annual dividend of $0.80 per share and has a dividend yield of 0.5%. Rightmove pays out 32.7% of its earnings in the form of a dividend. Alphabet pays out 12.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Institutional & Insider Ownership

55.1% of Rightmove shares are owned by institutional investors. Comparatively, 40.0% of Alphabet shares are owned by institutional investors. 11.6% of Alphabet shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rightmove	N/A	N/A	N/A	$0.86	7.94
Alphabet	$328.28 billion	5.92	$73.80 billion	$6.52	24.12

Alphabet has higher revenue and earnings than Rightmove. Rightmove 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 Rightmove on 11 of the 13 factors compared between the two stocks.

About Rightmove

Rightmove plc, together with its subsidiaries, operates online digital property advertising and information portals in the United Kingdom and internationally. The company operates through Agency, New Homes, and Other segments. The Agency segment provides property resale and letting advertising services on its platforms. The segment also offers tenant references and rent guarantee insurance services to landlords. The New Homes segment provides property advertising services to new home developers and housing associations on its platforms. The Other segment offers overseas and commercial property advertising services; non-property advertising services that include third party advertising and data services; and mortgage services. It also provides valuation and brokerage services, as well as engages in the sale of property data. The company serves property professionals, such as estate agents, lettings agents, and new homes developers, as well as landlords, surveyors, insurers, mortgage lenders, brokers, and local authorities. Rightmove plc was founded in 2000 and is based in Milton Keynes, the United Kingdom.

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.