Alphabet (NASDAQ:GOOG) versus GAN (NASDAQ:GAN) Critical Analysis

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

Volatility and Risk

Alphabet has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, GAN has a beta of 1.99, suggesting that its share price is 99% more volatile than the S&P 500.

Earnings and Valuation

This table compares Alphabet and GAN”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alphabet	$339.86 billion	6.36	$73.80 billion	$7.54	23.41
GAN	$129.42 million	0.65	-$34.44 million	($0.30)	-6.20

Alphabet has higher revenue and earnings than GAN. GAN 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 and target prices for Alphabet and GAN, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alphabet	0	5	13	3	2.90
GAN	0	0	0	0	0.00

Alphabet currently has a consensus price target of $200.56, indicating a potential upside of 13.64%. Given Alphabet’s stronger consensus rating and higher possible upside, equities analysts clearly believe Alphabet is more favorable than GAN.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alphabet	27.74%	31.66%	22.79%
GAN	-9.84%	N/A	-15.85%

Institutional & Insider Ownership

27.3% of Alphabet shares are held by institutional investors. Comparatively, 16.7% of GAN shares are held by institutional investors. 13.0% of Alphabet shares are held by insiders. Comparatively, 8.5% of GAN shares are held 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.

Summary

Alphabet beats GAN on 14 of the 15 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 GAN

GAN Limited operates as a business-to-business (B2B) supplier of enterprise software-as-a-service solutions to online casino gaming and sports betting applications in the United States, Europe, Latin America, and internationally. It operates through two segments: B2B and B2C. The company provides and licenses GameSTACK, an internet gaming platform that provides turnkey technology solution for regulated real-money internet gambling, online sports betting, and virtual simulated gaming. It offers Real Money iGaming, GAN sports retail and online sportsbook, super remote gaming server, Simulated Gaming, iSight Back Office, iBridge Framework, and development services; development, marketing, and customer support services designed to fast-track deployments and provide ongoing operational support services. In addition, the company offers online sports betting, online casino game, and peer-to-peer poker services through its coolbet.com website. It serves regional operators and individual tribal casino operators. GAN Limited was incorporated in 1999 and is headquartered in Irvine, California.