Garmin (GRMN) Competitors

Garmin (NYSE:GRMN) and Alphabet (NASDAQ:GOOGL) are both large-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, media sentiment, institutional ownership, analyst recommendations, dividends and risk.

Which has better valuation & earnings, GRMN or GOOGL?

Alphabet has higher revenue and earnings than Garmin. Alphabet is trading at a lower price-to-earnings ratio than Garmin, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Garmin	$6.30B	6.60	$1.41B	$7.60	28.42
Alphabet	$359.71B	6.14	$100.12B	$8.97	20.29

Is GRMN or GOOGL more profitable?

Alphabet has a net margin of 30.86% compared to Garmin's net margin of 22.76%. Alphabet's return on equity of 34.54% beat Garmin's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Garmin	22.76%	19.21%	15.58%
Alphabet	30.86%	34.54%	25.07%

Which has more volatility & risk, GRMN or GOOGL?

Garmin has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Alphabet has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Is GRMN or GOOGL a better dividend stock?

Garmin pays an annual dividend of $3.60 per share and has a dividend yield of 1.7%. Alphabet pays an annual dividend of $0.84 per share and has a dividend yield of 0.5%. Garmin pays out 47.4% of its earnings in the form of a dividend. Alphabet pays out 9.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Garmin has increased its dividend for 8 consecutive years and Alphabet has increased its dividend for 1 consecutive years. Garmin is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Does the media favor GRMN or GOOGL?

In the previous week, Alphabet had 198 more articles in the media than Garmin. MarketBeat recorded 215 mentions for Alphabet and 17 mentions for Garmin. Alphabet's average media sentiment score of 1.16 beat Garmin's score of 0.61 indicating that Alphabet is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Garmin	10 Very Positive mention(s)	1 Positive mention(s)	6 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Alphabet	154 Very Positive mention(s)	23 Positive mention(s)	20 Neutral mention(s)	10 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts recommend GRMN or GOOGL?

Garmin presently has a consensus price target of $206.00, indicating a potential downside of 4.63%. Alphabet has a consensus price target of $199.41, indicating a potential upside of 9.56%. Given Alphabet's stronger consensus rating and higher probable upside, analysts plainly believe Alphabet is more favorable than Garmin.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Garmin	2 Sell rating(s)	1 Hold rating(s)	0 Buy rating(s)	1 Strong Buy rating(s)	2.00
Alphabet	0 Sell rating(s)	10 Hold rating(s)	28 Buy rating(s)	4 Strong Buy rating(s)	2.86

Do insiders and institutionals have more ownership in GRMN or GOOGL?

81.6% of Garmin shares are owned by institutional investors. Comparatively, 40.0% of Alphabet shares are owned by institutional investors. 19.5% of Garmin shares are owned by company insiders. Comparatively, 11.6% of Alphabet shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Alphabet beats Garmin on 14 of the 20 factors compared between the two stocks.