Both Facebook (NASDAQ: FB) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), the parent company of Google, seem like a must buy in today’s market environment, with their strong balance sheets, positive earnings, and modest growth, but what if you could only pick one? In today’s video, I explain why Facebook might be a better investment for the future.
Some reasons why Facebook is better than Google
- Future growth: Analysts believe Facebook will grow revenue faster in the next few years than Alphabet. Facebook is also very aggressive with its VR development, which is a market that many believe will explode soon.
- Stronger margins: When you look at the fundamentals of every business like profit margin, gross margin, and cash flow from operating margin, Facebook always seems to be on top.
- Evaluation: When it comes to current and future P / E ratios, Facebook is cheaper than Alphabet, even though it has better margins and higher growth expectations, as mentioned earlier.
Click on the video below for all my thoughts.
The stock prices used were the prices at noon on April 5, 2021. The video was published on April 7, 2021.
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Suzanne Frey, executive at Alphabet, is a member of the board of directors of The Motley Fool. Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of its CEO, Mark Zuckerberg, is a member of the board of directors of The Motley Fool. Jose najarro owns Alphabet (C shares) and Facebook shares. The Motley Fool owns shares and recommends Alphabet (A shares), Alphabet (C shares) and Facebook. The Motley Fool has a disclosure policy. Jose is a subsidiary of The Motley Fool and may be remunerated for promoting its services. If you choose to subscribe via his link, he will earn extra money to support his channel. His opinions remain his own and are unaffected by The Motley Fool.
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