WallStSmart

Alphabet Inc Class C (GOOG)vsiQIYI Inc (IQ)

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Smart Verdict

WallStSmart Research — data-driven comparison

Alphabet Inc Class C generates 1505% more annual revenue ($422.50B vs $26.33B). GOOG leads profitability with a 37.9% profit margin vs -2.6%. GOOG appears more attractively valued with a PEG of 1.36. GOOG earns a higher WallStSmart Score of 75/100 (B).

GOOG

Strong Buy

75

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 6.7Quality: 8.5
Piotroski: 4/9Altman Z: 3.91

IQ

Hold

39

out of 100

Grade: F

Growth: 2.0Profit: 2.0Value: 6.3Quality: 3.0
Piotroski: 3/9Altman Z: -0.74
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GOOGUndervalued (+27.3%)

Margin of Safety

+27.3%

Fair Value

$449.28

Current Price

$333.68

$115.60 discount

UndervaluedFair: $449.28Overvalued
IQUndervalued (+82.9%)

Margin of Safety

+82.9%

Fair Value

$11.30

Current Price

$1.23

$10.07 discount

UndervaluedFair: $11.30Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GOOG6 strengths · Avg: 10.0/10
Market CapQuality
$4.17T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
38.1%10/10

Every $100 of equity generates 38 in profit

Profit MarginProfitability
37.9%10/10

Keeps 38 of every $100 in revenue as profit

Operating MarginProfitability
36.1%10/10

Strong operational efficiency at 36.1%

EPS GrowthGrowth
82.0%10/10

Earnings expanding 82.0% YoY

Altman Z-ScoreHealth
3.9110/10

Safe zone — low bankruptcy risk

IQ1 strengths · Avg: 10.0/10
Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Areas to Watch

GOOG3 concerns · Avg: 3.3/10
P/E RatioValuation
26.4x4/10

Moderate valuation

Price/BookValuation
8.4x4/10

Trading at 8.4x book value

Free Cash FlowQuality
$-5.86B2/10

Negative free cash flow — burning cash

IQ4 concerns · Avg: 3.3/10
PEG RatioValuation
2.484/10

Expensive relative to growth rate

Market CapQuality
$1.21B3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.093/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : GOOG

The strongest argument for GOOG centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 37.9% and operating margin at 36.1%. Revenue growth of 21.8% demonstrates continued momentum.

Bull Case : IQ

The strongest argument for IQ centers on Price/Book.

Bear Case : GOOG

The primary concerns for GOOG are P/E Ratio, Price/Book, Free Cash Flow.

Bear Case : IQ

The primary concerns for IQ are PEG Ratio, Market Cap, Debt/Equity.

Key Dynamics to Monitor

GOOG profiles as a growth stock while IQ is a turnaround play — different risk/reward profiles.

GOOG carries more volatility with a beta of 1.25 — expect wider price swings.

GOOG is growing revenue faster at 21.8% — sustainability is the question.

IQ generates stronger free cash flow (110M), providing more financial flexibility.

Bottom Line

GOOG scores higher overall (75/100 vs 39/100), backed by strong 37.9% margins and 21.8% revenue growth. IQ offers better value entry with a 82.9% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Alphabet Inc Class C

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.

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iQIYI Inc

COMMUNICATION SERVICES · ENTERTAINMENT · China

iQIYI, Inc., offers online entertainment services under the iQIYI brand in the People's Republic of China.

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