Both Facebook (FB 1.18%) and Alphabet (GOOG -1.29%) (GOOGL -1.34%), the parent company of Google, seem to be must-buys in today's market environment, with their strong balance sheets, positive earnings, and modest growth, but what if you could only choose one? In today's video, I break down why Facebook might be a better investment for the future.
A few reasons Facebook is better than Google
- Future growth: Analysts believe that Facebook will grow its revenue faster in the next few years than Alphabet. Facebook is also very aggressive with its VR development, which is a market that many believe will boom soon.
- Stronger margins: When looking at the fundamentals of each company, like profit margin, gross margin, and cash flow from operation margin, Facebook seems to always be on top.
- Valuation: Looking at both forward and current P/E ratios, Facebook is cheaper than Alphabet, even though it has better margins and higher growth expectations, as previously mentioned.
Click the video below for my full thoughts.
Stock Prices used were the midday prices of April 5, 2021. The video was published on April 7, 2021.