Over the past three months, the Interactive Media & Services industry (+17.7%) has been one of the top growth leaders in the S&P 500 index.
Some of the largest (by market capitalization) companies in this industry are: Alphabet ($2.30T), a holding company that includes the Internet media giant Google, and Meta ($1.29T), the world’s largest social network with almost 4 billion active users.
According to the latest quarterly reporting data, we analyzed each company’s profitability, strength, and efficiency criteria according to the methodology of Stanford University professor Joseph Piotroski.
As you can see, in terms of fundamentals, both companies are performing quite strongly at the moment. However, Alphabet is showing better results and outperforms Meta in terms of sustainability.
Over the past 3 months, Alphabet shares have risen by +26.6%, while Meta shares have risen by +5.6% (the S&P 500 index is up +8.1%). Alphabet outperformed its closest competitor and showed better results compared to the index.
So, the winner in today’s battle is Alphabet (GOOGL). Although Meta is superior in terms of liquidity, Alphabet’s business looks healthier in terms of leverage and funding, and its shares show better returns.
* This is not an investment recommendation. It is up to each individual to decide which criteria to favor when making an investment decision, taking into account their goals and individual risk tolerance.
