WallStSmart

Alphabet Inc Class C (GOOG)vsRoku Inc (ROKU)

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Smart Verdict

WallStSmart Research — data-driven comparison

Alphabet Inc Class C generates 8404% more annual revenue ($402.84B vs $4.74B). GOOG leads profitability with a 32.8% profit margin vs 1.9%. ROKU appears more attractively valued with a PEG of 1.01. GOOG earns a higher WallStSmart Score of 69/100 (B-).

GOOG

Strong Buy

69

out of 100

Grade: B-

Growth: 8.7Profit: 10.0Value: 5.3Quality: 8.5
Piotroski: 4/9Altman Z: 3.91

ROKU

Hold

42

out of 100

Grade: D

Growth: 6.0Profit: 4.0Value: 3.3Quality: 7.5
Piotroski: 4/9Altman Z: 2.08
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GOOGUndervalued (+0.6%)

Margin of Safety

+0.6%

Fair Value

$384.28

Current Price

$381.94

$2.34 discount

UndervaluedFair: $384.28Overvalued
ROKUSignificantly Overvalued (-44.9%)

Margin of Safety

-44.9%

Fair Value

$60.66

Current Price

$112.62

$51.96 premium

UndervaluedFair: $60.66Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GOOG6 strengths · Avg: 10.0/10
Market CapQuality
$4.20T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.7%10/10

Every $100 of equity generates 36 in profit

Profit MarginProfitability
32.8%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
31.6%10/10

Strong operational efficiency at 31.6%

Free Cash FlowQuality
$24.55B10/10

Generating 24.6B in free cash flow

Altman Z-ScoreHealth
3.9110/10

Safe zone — low bankruptcy risk

ROKU1 strengths · Avg: 8.0/10
Revenue GrowthGrowth
16.1%8/10

16.1% revenue growth

Areas to Watch

GOOG3 concerns · Avg: 4.0/10
PEG RatioValuation
2.384/10

Expensive relative to growth rate

P/E RatioValuation
26.5x4/10

Moderate valuation

Price/BookValuation
11.1x4/10

Trading at 11.1x book value

ROKU4 concerns · Avg: 2.8/10
Return on EquityProfitability
3.4%3/10

ROE of 3.4% — below average capital efficiency

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

P/E RatioValuation
190.9x2/10

Premium valuation, high expectations priced in

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 32.8% and operating margin at 31.6%. Revenue growth of 18.0% demonstrates continued momentum.

Bull Case : ROKU

The strongest argument for ROKU centers on Revenue Growth. Revenue growth of 16.1% demonstrates continued momentum. PEG of 1.01 suggests the stock is reasonably priced for its growth.

Bear Case : GOOG

The primary concerns for GOOG are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : ROKU

The primary concerns for ROKU are Return on Equity, Profit Margin, Operating Margin. A P/E of 190.9x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

ROKU carries more volatility with a beta of 2.00 — expect wider price swings.

GOOG is growing revenue faster at 18.0% — sustainability is the question.

GOOG generates stronger free cash flow (24.6B), providing more financial flexibility.

Monitor INTERNET CONTENT & INFORMATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

GOOG scores higher overall (69/100 vs 42/100), backed by strong 32.8% margins and 18.0% revenue growth. 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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Roku Inc

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Roku, Inc. operates a TV streaming platform. The company is headquartered in San Jose, California.

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