Head to Head Analysis: CAR Group (OTCMKTS:CSXXY) and Alphabet (NASDAQ:GOOGL)

CAR Group (OTCMKTS:CSXXY) and Alphabet (NASDAQ:GOOGL) are both communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CAR Group	N/A	N/A	N/A
Alphabet	26.70%	30.49%	21.63%

Earnings & Valuation

This table compares CAR Group and Alphabet’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CAR Group	N/A	N/A	N/A	$0.32	157.12
Alphabet	$328.28 billion	6.29	$73.80 billion	$6.52	25.64

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

Analyst Recommendations

This is a summary of recent ratings and price targets for CAR Group and Alphabet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CAR Group	0	0	0	0	N/A
Alphabet	0	6	28	1	2.86

Alphabet has a consensus target price of $203.74, indicating a potential upside of 21.87%. Given Alphabet’s higher possible upside, analysts clearly believe Alphabet is more favorable than CAR Group.

Institutional & Insider Ownership

15.6% of CAR Group shares are held by institutional investors. Comparatively, 40.0% of Alphabet shares are held by institutional investors. 11.6% of Alphabet shares are held by company 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 CAR Group on 10 of the 11 factors compared between the two stocks.

About CAR Group

CAR Group Limited operates online automotive, motorcycle, and marine classifieds business in Australia, Brazil, South Korea, Malaysia, Indonesia, Thailand, Chile, China, the United States, and Mexico. The company operates through Online Advertising Services; Data, Research and Services; Carsales Investments; North America; Latin America; and Asia segments. The Online Advertising Services segment offers classified advertising that allows private and dealer customers to advertise automotive and non-automotive goods and services for sale across the carsales network; products, including subscriptions, lead fees, listing fees, and priority placement services; and display advertising services, such as placing advertisements on carsales network websites for corporate customers comprising automotive manufacturers and finance companies. The Data, Research and Services segment offers software as a service, research and reporting, valuation, appraisals, and website development and hosting services, as well as photography services. The Carsales Investments segment holds investment in consumer and wholesale tyre markets, as well as provides mobility and vehicle inspection services. The North America segment operates digital non-automotive marketplaces. The Latin America segment digital automotive marketplaces. The Asia segment is involved in digital automotive classified business, as well as provides automotive data and advertising services. The company was formerly known as carsales.com Ltd and changed its name to CAR Group Limited in November 2023. CAR Group Limited was incorporated in 1996 and is headquartered in Melbourne, Australia.

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.