Aurora Mobile (NASDAQ:JG) versus Alphabet (NASDAQ:GOOG) Critical Review

Aurora Mobile (NASDAQ:JGGet Free Report) and Alphabet (NASDAQ:GOOGGet Free Report) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Profitability

This table compares Aurora Mobile and Alphabet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aurora Mobile -7.99% -9.17% -2.71%
Alphabet 27.74% 31.66% 22.79%

Volatility & Risk

Aurora Mobile has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, Alphabet has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Aurora Mobile and Alphabet, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aurora Mobile 0 0 1 0 3.00
Alphabet 0 5 13 3 2.90

Aurora Mobile presently has a consensus price target of $7.00, suggesting a potential downside of 8.97%. Alphabet has a consensus price target of $200.56, suggesting a potential upside of 1.96%. Given Alphabet’s higher probable upside, analysts plainly believe Alphabet is more favorable than Aurora Mobile.

Insider & Institutional Ownership

85.5% of Aurora Mobile shares are held by institutional investors. Comparatively, 27.3% of Alphabet shares are held by institutional investors. 31.2% of Aurora Mobile shares are held by insiders. Comparatively, 13.0% of Alphabet shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Aurora Mobile and Alphabet”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aurora Mobile $40.88 million 1.11 -$8.75 million ($0.54) -14.24
Alphabet $307.39 billion 7.83 $73.80 billion $7.54 26.09

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

Summary

Alphabet beats Aurora Mobile on 11 of the 15 factors compared between the two stocks.

About Aurora Mobile

(Get Free Report)

Aurora Mobile Limited, through its subsidiaries, provides a range of developer services in China. The company provides push notification, instant messaging, analytics, sharing and short message service, one-click verification, and other services. The company offers real-time market intelligence solutions, such as product iApp, which provides analysis and statistical results on the usage and trends of mobile apps to investment funds and corporations. It also provides financial risk management solutions to assist financial institutions, licensed lenders, and credit card companies in making informed lending and credit decisions; and location-based intelligence services. In addition, the company offers application programming interfaces that create connectivity and automate the process of message exchange between the mobile apps and its backend network; an interactive web-based service dashboard that allows app developers to utilize and monitor its services through controls on an ongoing basis; and value added services, such as Advertisement SAAS, a data management platform service, which provides tagged and de-identified population data package; JG Alliance, an integrated marketing campaign services to advertising customers; and AD Mediation Platform to help mobile app developers access other mainstream advertising platforms. It primarily serves mobile app developers in a range of industries, such as media, entertainment, gaming, financial services, tourism, ecommerce, education, and healthcare. Aurora Mobile Limited was founded in 2011 and is headquartered in Shenzhen, the People's Republic of China.

About Alphabet

(Get Free Report)

Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play and YouTube; and devices, as well as in the provision of YouTube consumer subscription services. The Google Cloud segment offers infrastructure, cybersecurity, databases, analytics, AI, and other services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells healthcare-related and internet services. The company was incorporated in 1998 and is headquartered in Mountain View, California.

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