WallStSmart

Alphabet Inc Class A (GOOGL)vsStagwell Inc (STGW)

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Smart Verdict

WallStSmart Research — data-driven comparison

Alphabet Inc Class A generates 14167% more annual revenue ($422.50B vs $2.96B). GOOGL leads profitability with a 37.9% profit margin vs 0.6%. GOOGL trades at a lower P/E of 30.4x. GOOGL earns a higher WallStSmart Score of 74/100 (B).

GOOGL

Strong Buy

74

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 6.0Quality: 8.5
Piotroski: 4/9Altman Z: 3.91

STGW

Hold

46

out of 100

Grade: D+

Growth: 6.7Profit: 4.0Value: 5.7Quality: 3.0
Piotroski: 5/9Altman Z: 0.96
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GOOGLUndervalued (+38.7%)

Margin of Safety

+38.7%

Fair Value

$649.51

Current Price

$400.80

$248.71 discount

UndervaluedFair: $649.51Overvalued
STGWUndervalued (+73.5%)

Margin of Safety

+73.5%

Fair Value

$20.07

Current Price

$6.47

$13.60 discount

UndervaluedFair: $20.07Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GOOGL6 strengths · Avg: 10.0/10
Market CapQuality
$4.82T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
38.9%10/10

Every $100 of equity generates 39 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

STGW2 strengths · Avg: 9.0/10
EPS GrowthGrowth
65.1%10/10

Earnings expanding 65.1% YoY

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

GOOGL3 concerns · Avg: 4.0/10
PEG RatioValuation
1.574/10

Expensive relative to growth rate

P/E RatioValuation
30.4x4/10

Premium valuation, high expectations priced in

Price/BookValuation
11.7x4/10

Trading at 11.7x book value

STGW4 concerns · Avg: 3.0/10
Market CapQuality
$1.60B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
2.9%3/10

ROE of 2.9% — below average capital efficiency

Profit MarginProfitability
0.6%3/10

0.6% margin — thin

Operating MarginProfitability
2.8%3/10

Operating margin of 2.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : GOOGL

The strongest argument for GOOGL 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 : STGW

The strongest argument for STGW centers on EPS Growth, Price/Book.

Bear Case : GOOGL

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

Bear Case : STGW

The primary concerns for STGW are Market Cap, Return on Equity, Profit Margin. A P/E of 92.3x leaves little room for execution misses. Debt-to-equity of 2.35 is elevated, increasing financial risk.

Key Dynamics to Monitor

GOOGL profiles as a growth stock while STGW is a value play — different risk/reward profiles.

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

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

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

Bottom Line

GOOGL scores higher overall (74/100 vs 46/100), backed by strong 37.9% margins and 21.8% revenue growth. STGW offers better value entry with a 73.5% margin of safety. Both earn "Strong Buy" and "Hold" 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 A

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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Stagwell Inc

COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA

Stagwell Inc. (STGW) is a premier digital marketing and communications agency, recognized for its innovation and leadership since its founding in 2015. The firm offers a diverse range of services, including advertising, public relations, and digital media, utilizing cutting-edge technology and data analytics to deliver measurable results for clients. Stagwell's strategic emphasis on performance-oriented solutions and targeted acquisitions strengthens its competitive edge and positions it well in the rapidly changing marketing landscape. For institutional investors, Stagwell represents a compelling investment opportunity in a forward-thinking company well-equipped to capitalize on the growth of the global digital economy.

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