WallStSmart

Alphabet Inc Class C (GOOG)vsWarner Music Group (WMG)

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Smart Verdict

WallStSmart Research — data-driven comparison

Alphabet Inc Class C generates 5754% more annual revenue ($402.84B vs $6.88B). GOOG leads profitability with a 32.8% profit margin vs 4.4%. WMG appears more attractively valued with a PEG of 0.75. 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

WMG

Buy

58

out of 100

Grade: C

Growth: 4.0Profit: 7.0Value: 7.3Quality: 3.5
Piotroski: 1/9Altman Z: 0.59
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
WMGUndervalued (+57.9%)

Margin of Safety

+57.9%

Fair Value

$70.76

Current Price

$27.92

$42.84 discount

UndervaluedFair: $70.76Overvalued

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

WMG2 strengths · Avg: 9.0/10
Return on EquityProfitability
39.8%10/10

Every $100 of equity generates 40 in profit

PEG RatioValuation
0.758/10

Growing faster than its price suggests

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

WMG4 concerns · Avg: 2.5/10
Profit MarginProfitability
4.4%3/10

4.4% margin — thin

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

P/E RatioValuation
49.0x2/10

Premium valuation, high expectations priced in

Price/BookValuation
20.2x2/10

Trading at 20.2x book value

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 : WMG

The strongest argument for WMG centers on Return on Equity, PEG Ratio. Revenue growth of 10.4% demonstrates continued momentum. PEG of 0.75 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 : WMG

The primary concerns for WMG are Profit Margin, Piotroski F-Score, P/E Ratio. A P/E of 49.0x leaves little room for execution misses. Thin 4.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

GOOG profiles as a growth stock while WMG is a value play — different risk/reward profiles.

WMG carries more volatility with a beta of 1.28 — 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.

Bottom Line

GOOG scores higher overall (69/100 vs 58/100), backed by strong 32.8% margins and 18.0% revenue growth. WMG offers better value entry with a 57.9% margin of safety. Both earn "Strong Buy" and "Buy" 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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Warner Music Group

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Warner Music Group Corp.

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