BlackRock vs Alphabet Which Is Stronger?

BlackRock and Alphabet are two giants in the investment and technology industries, respectively. As the world's largest asset manager, BlackRock has substantial influence on global markets and is known for its diverse portfolio of investments. On the other hand, Alphabet, the parent company of Google, is one of the most valuable and innovative technology companies in the world. Both companies have seen significant growth in recent years and continue to be major players in their respective industries. In this comparison, we will analyze the performance and potential of BlackRock vs Alphabet stocks.

BlackRock or Alphabet?

When comparing BlackRock and Alphabet, 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 BlackRock and Alphabet.

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. BlackRock has a dividend yield of 1.93%, while Alphabet has a dividend yield of 0.32%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. BlackRock reports a 5-year dividend growth of 10.72% year and a payout ratio of 50.26%. On the other hand, Alphabet reports a 5-year dividend growth of 0.00% year and a payout ratio of 5.22%.

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 BlackRock P/E ratio at 25.76 and Alphabet's P/E ratio at 24.14. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. BlackRock P/B ratio is 3.80 while Alphabet's P/B ratio is 7.24.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, BlackRock has seen a 5-year revenue growth of 0.36%, while Alphabet's is 1.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with BlackRock's ROE at 15.15% and Alphabet's ROE at 31.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1046.02 for BlackRock and $182.67 for Alphabet. Over the past year, BlackRock's prices ranged from $745.55 to $1068.34, with a yearly change of 43.30%. Alphabet's prices fluctuated between $131.06 and $193.31, with a yearly change of 47.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.