Alphabet (NASDAQ:GOOGL) versus KLDiscovery (OTCMKTS:KLDI) Head-To-Head Review

Alphabet (NASDAQ:GOOGL) and KLDiscovery (OTCMKTS:KLDI) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.

Risk and Volatility

Alphabet has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, KLDiscovery has a beta of -0.66, meaning that its share price is 166% less volatile than the S&P 500.

Insider & Institutional Ownership

40.0% of Alphabet shares are held by institutional investors. Comparatively, 20.4% of KLDiscovery shares are held by institutional investors. 11.6% of Alphabet shares are held by insiders. Comparatively, 30.7% of KLDiscovery shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alphabet	25.90%	29.52%	20.74%
KLDiscovery	-14.07%	-607.40%	-7.72%

Valuation & Earnings

This table compares Alphabet and KLDiscovery’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alphabet	$318.15 billion	7.14	$73.80 billion	$6.52	28.20
KLDiscovery	$345.80 million	0.01	-$34.81 million	($1.09)	-0.07

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

Analyst Ratings

This is a summary of current ratings for Alphabet and KLDiscovery, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alphabet	0	5	30	1	2.89
KLDiscovery	0	0	0	0	N/A

Alphabet currently has a consensus price target of $193.69, indicating a potential upside of 5.33%. Given Alphabet’s higher possible upside, equities analysts plainly believe Alphabet is more favorable than KLDiscovery.

Summary

Alphabet beats KLDiscovery on 13 of the 14 factors compared between the two stocks.

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.

About KLDiscovery

KLDiscovery Inc. provides eDiscovery, information governance, and data recovery solutions to corporations, law firms, insurance companies, and individuals worldwide. The company offers Nebula, an end-to-end eDiscovery solution that facilitates smarter ways to cull, process, review, and manage documents in an intuitive interface; Client Portal for consolidated visualizations and reporting for portfolio intelligence; KLD Processing, a proprietary processing application; ReadySuite to perform extensive QC on a production, normalize inbound submissions, or spot check the work of a colleague or supplier; Relativity for relativity enhancements and state-of-the-art HIVE infrastructure; Nebula Processing to process data with a higher degree of quality; and Nebula AI, a technology assisted review tool combined with a deep bench of experts, as well as managed services, remote document review, and managed document review services. It also provides computer forensics, ransomware data recovery, remote collection manager, data recovery, and data collection services. In addition, the company offers Nebula Archive, an advanced archiving solution for modern enterprise data management needs at scale; Nebula Intelligent Archive, a digital communications compliance platform with machine learning and analytics; and Office 365 Migration and Management, as well as information governance and advisory services. Further, it provides Ontrack EasyRecovery that allows clients to perform precise file recovery of data lost through deletion, reformatting, and various other data loss scenarios; Ontrack PowerControls, a granular restore software product; email extraction, tape solutions, and data destruction solutions; and professional services. KLDiscovery Inc. was founded in 1985 and is headquartered in Eden Prairie, Minnesota.