Alphabet vs Sea

Alphabet Inc. and Sea Limited are two prominent companies in the technology and e-commerce industries. Alphabet, the parent company of Google, is a global leader in search engines, advertising, and cloud computing services. Meanwhile, Sea Limited is a rapidly growing internet company based in Southeast Asia, with a focus on e-commerce, digital entertainment, and online financial services. Both companies have experienced significant growth in recent years, but they operate in different markets and face distinct challenges and opportunities. In this comparison, we will analyze the financial performance, market position, and growth potential of Alphabet and Sea Limited.

Alphabet or Sea?

When comparing Alphabet and Sea, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Alphabet and Sea.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Alphabet has a dividend yield of 0.36%, while Sea has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Alphabet reports a 5-year dividend growth of 0.00% year and a payout ratio of 2.81%. On the other hand, Sea reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Alphabet P/E ratio at 23.30 and Sea's P/E ratio at -283.40. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Alphabet P/B ratio is 6.79 while Sea's P/B ratio is 8.10.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Alphabet has seen a 5-year revenue growth of 1.47%, while Sea's is 8.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alphabet's ROE at 30.48% and Sea's ROE at -2.95%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $166.05 for Alphabet and $96.44 for Sea. Over the past year, Alphabet's prices ranged from $121.46 to $193.31, with a yearly change of 59.16%. Sea's prices fluctuated between $34.35 and $101.01, with a yearly change of 194.06%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.