Critical Contrast: Xunlei (NASDAQ:XNET) & Alphabet (NASDAQ:GOOGL)

Alphabet (NASDAQ:GOOGLGet Free Report) and Xunlei (NASDAQ:XNETGet Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alphabet $385.48 billion 8.75 $100.12 billion $10.14 27.50
Xunlei $324.40 million 1.52 $1.22 million $11.38 0.69

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

Risk & Volatility

Alphabet has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Xunlei has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alphabet 0 9 38 3 2.88
Xunlei 0 1 0 0 2.00

Alphabet currently has a consensus price target of $304.10, indicating a potential upside of 9.06%. Given Alphabet’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Alphabet is more favorable than Xunlei.

Insider & Institutional Ownership

40.0% of Alphabet shares are owned by institutional investors. Comparatively, 5.1% of Xunlei shares are owned by institutional investors. 11.6% of Alphabet shares are owned by insiders. Comparatively, 21.7% of Xunlei shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Alphabet 32.23% 36.08% 26.11%
Xunlei 202.62% 4.50% 3.35%

Summary

Alphabet beats Xunlei on 12 of the 15 factors compared between the two stocks.

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.

About Xunlei

(Get Free Report)

Xunlei Limited, together with its subsidiaries, operates an internet platform for digital media content in the People's Republic of China. Its platform is based on cloud technology that enables users to access, store, manage, and consume digital media content. The company offers Xunlei Accelerator, which enables users to accelerate digital transmission over the internet; mobile acceleration plug-in, which provides mobile device users with benefits of download speed acceleration and download success rate improvements; and subscription services that offer users premium services through Green Channel and Fast Bird products. It also provides Mobile Xunlei, a mobile application that allows users to search, download, consume, and store digital media content; Xunlei Media Player, which supports online and offline play of digital media content, as well as simultaneous play of digital media content while it is being transmitted by Xunlei Accelerator; online games through online game website and mobile app; advertising services; live streaming products, including video and audio livestreaming; and develops software and computer software, as well as other internet value-added services. In addition, the company offers cloud computing services through OneThing Cloud, and StellarCloud; and hardware for edging computing, such as OneThing Edge Cube, and OneThing Edge Atom. Further it offers ThunderChain, a blockchain infrastructure product that enables its users to develop and manage blockchain applications. The company was formerly known as Giganology Limited and changed its name to Xunlei Limited in January 2011. Xunlei Limited was founded in 2003 and is headquartered in Shenzhen, the People's Republic of China.

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