WallStSmart

Alphabet Inc Class C (GOOG)vsWarner Music Group (WMG)

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Smart Verdict

WallStSmart Research — data-driven comparison

Alphabet Inc Class C generates 5826% more annual revenue ($422.50B vs $7.13B). GOOG leads profitability with a 37.9% profit margin vs 6.3%. WMG appears more attractively valued with a PEG of 0.52. GOOG earns a higher WallStSmart Score of 75/100 (B).

GOOG

Strong Buy

75

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 6.0Quality: 8.0
Piotroski: 4/9Altman Z: 3.91

WMG

Strong Buy

70

out of 100

Grade: B

Growth: 7.3Profit: 7.0Value: 7.3Quality: 2.0
Piotroski: 1/9Altman Z: 0.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GOOGUndervalued (+0.9%)

Margin of Safety

+0.9%

Fair Value

$369.04

Current Price

$365.76

$3.28 discount

UndervaluedFair: $369.04Overvalued
WMGUndervalued (+41.0%)

Margin of Safety

+41.0%

Fair Value

$50.46

Current Price

$29.93

$20.53 discount

UndervaluedFair: $50.46Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GOOG6 strengths · Avg: 10.0/10
Market CapQuality
$4.34T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
33.5%10/10

Every $100 of equity generates 33 in profit

Profit MarginProfitability
37.9%10/10

Keeps 38 of every $100 in revenue as profit

Operating MarginProfitability
36.1%10/10

Strong operational efficiency at 36.1%

EPS GrowthGrowth
82.0%10/10

Earnings expanding 82.0% YoY

Free Cash FlowQuality
$10.12B10/10

Generating 10.1B in free cash flow

WMG4 strengths · Avg: 9.0/10
Return on EquityProfitability
61.3%10/10

Every $100 of equity generates 61 in profit

EPS GrowthGrowth
393.1%10/10

Earnings expanding 393.1% YoY

PEG RatioValuation
0.528/10

Growing faster than its price suggests

Revenue GrowthGrowth
16.7%8/10

16.7% revenue growth

Areas to Watch

GOOG2 concerns · Avg: 4.0/10
P/E RatioValuation
27.3x4/10

Moderate valuation

Price/BookValuation
9.3x4/10

Trading at 9.3x book value

WMG4 concerns · Avg: 3.0/10
P/E RatioValuation
33.9x4/10

Premium valuation, high expectations priced in

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Price/BookValuation
21.1x2/10

Trading at 21.1x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : GOOG

The strongest argument for GOOG centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 37.9% and operating margin at 36.1%. Revenue growth of 21.8% demonstrates continued momentum.

Bull Case : WMG

The strongest argument for WMG centers on Return on Equity, EPS Growth, PEG Ratio. Revenue growth of 16.7% demonstrates continued momentum. PEG of 0.52 suggests the stock is reasonably priced for its growth.

Bear Case : GOOG

The primary concerns for GOOG are P/E Ratio, Price/Book.

Bear Case : WMG

The primary concerns for WMG are P/E Ratio, Profit Margin, Piotroski F-Score. Debt-to-equity of 6.70 is elevated, increasing financial risk.

Key Dynamics to Monitor

WMG carries more volatility with a beta of 1.27 — expect wider price swings.

GOOG is growing revenue faster at 21.8% — sustainability is the question.

GOOG generates stronger free cash flow (10.1B), providing more financial flexibility.

Monitor INTERNET CONTENT & INFORMATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

GOOG scores higher overall (75/100 vs 70/100), backed by strong 37.9% margins and 21.8% revenue growth. WMG offers better value entry with a 41.0% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Alphabet Inc Class C

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.

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Warner Music Group

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Warner Music Group Corp.

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