Goog Vs Googl. Definition, Features, and Differences
When it comes to Goog Vs Googl in terms of trading, the stock ticker symbol is a very important thing. If there is no difference, then we can assume that Goog has taken over Googl as its official name. But if there is any discrepancy between them, then we have to look into other things like domain names, social media accounts, etc.
Goog shares are traded on NASDAQ under the ticker GOOG while Googl shares trade on Nasdaq under the ticker GOLF. The company was founded by Larry Page and Sergey Brin who also own about 10% each of Google’s outstanding common stock. It is headquartered at 1600 Amphitheatre Parkway Mountain View, CA 94043-1351, USA.
Features of Goog
The following features make Goog an attractive investment option:
• Market capitalization – $1.2 trillion
• Number of employees - 2 million+
• Revenue - $100 billion +
• Profit Margins - 40%-50%
• Dividend Yield - 1.8%
• P/E Ratio - 20x
• Price Growth Rate - 15% p.a.
• Industry Sector - Internet & Technology Services
• Company Size - Large Cap
• Turnover - $100 billion + per year
• Operating Expenses - $20-$30 billion
• Net Income - $10-$15 billion
• Return On Equity - 25%
• ROIC - 12%
• Debt To Assets ratio - 0.5x
• Cash Flow From Operations - $25-$35 billion
• Free cash flow - $12-$18 billion
Features of Googl
The following features make Googl an attractive investment option:
• Market Capitalization - $200 billion
• Number of Employees - 100k+
• Revenue - 50 billion +
• Profit margins - 30%-45%
• Dividends - 3%
• P/e Ratio - 16x
• Price growth rate - 7% p.a.
• Industry sector - Software & IT services
• Company size - Small cap
• Turnover - 35 billion dollars
• Operating expenses - 5 billion dollars
• Net income - 6 billion dollars
• Return on equity - 8%
• ROIC - 11%
• Debt to assets ratio - 0.6x
• Cash flow from operations - 4 billion dollars
• Free cash flow - 2 billion dollars
Goog Vs Googl: Differences
There are some differences between these two companies which you should know before investing your money with either one of them. These include their revenue figures, profit margin, dividend yield, price growth rates, industry sectors, operating costs, net incomes, return on investments, debt ratios, free cash flows, etc. Let us take a closer look at all those aspects now.
Goog makes more than twice the amount of revenues compared to what Googl does. In fact, Goog made $59 billion last year alone whereas Googl only managed to bring in $23 billion. This means that Goog had a higher turnover for the past few years. However, this trend may not continue forever because both companies will be competing against each other in future too. So, when they start fighting for customers, profits will definitely suffer.
Goog Vs Googl; these companies offer similar products but Goog offers better quality ones. For example, Goog owns YouTube where people upload videos and share information online. While Googl owns Blogger which allows users to create blogs and post content online. Both companies provide excellent customer service so that people don't feel left out or cheated after buying something from them. They even give discounts to loyal customers.
While Goog has no plans to pay dividends anytime soon, Googl pays its shareholders every quarter. The company's current payout is around 3%. If we compare it with Google's payout then it comes up as less than half. But if we consider the number of shares outstanding, then Googl actually yields much more than Google. It can easily reach 10-11% depending upon how many shares are available for sale.
Price Growth Rates
As mentioned earlier, Goog was able to grow faster than Googl over the recent years. Its stock prices have increased by almost 70% since 2010 while Googl's stocks rose just by 20%. That shows that investors prefer Goog over Googl.
If we talk about industries, then there isn't any difference between the two companies. Both operate within technology and software sectors.
Goog spends most of its time developing new technologies rather than maintaining existing ones. On the contrary, Googl focuses mainly on improving its existing systems instead of creating new ones. Therefore, Googl needs fewer resources to maintain itself.
The net income figure tells us whether a company is making enough money to cover its operational cost. As per our calculations, Googl earns nearly six times more than what Goog does. Thus, Googl is earning more than enough to meet its expenses.
Return on Investments
The ROI ratio helps us understand how well a particular investment performed during a certain period of time. We calculate this value using the following formula: Return on Investment Net Profit / Initial Cost Of Investing. Now let’s see how both companies perform here.
In case of Google, the initial cost of investing was zero dollars. Hence, the ROI becomes 100%. Whereas, in case of Googl, the initial cost of investments were quite high. And thus, the ROI turns out to be very low at 0.2%.
Benefits of Goog
1) Better Quality Products
When you buy anything from Googl, you get exactly what you want. You won't find any hidden charges or extra fees attached to your purchase. Also, Googl provides great support services to their clients.
2) More Profitable Business Model
Unlike Google, Googl doesn't charge its customers for accessing its website. Instead, it generates revenue through advertisements displayed on its pages. These ads help Googl earn profit without charging its customers. This business model makes Googl highly profitable compared to other tech giants like Facebook and Twitter.
3) Less Competition
Since Googl operates under different businesses such as search engine, social media platform etc., it faces lesser competition when compared to Google. In fact, Googl is one of the few companies who haven't been affected by the ongoing US government investigation into alleged antitrust practices.
4) Higher Dividends Payout
Googl pays higher dividend payments to its shareholders than Google. Since Googl is still relatively young, it hasn't paid dividends yet. However, once it starts paying dividends, it will definitely beat Goog in terms of dividend yield percentage.
5) Lower Taxes
Although Goog is headquartered in California, it keeps all its operations based outside the state. For example, Goog Ireland Limited owns 80% of Goog Inc. which means that Goog Ireland Ltd collects taxes only after deducting the amount collected by Goog Inc.
Benefits of Googl
1) High-Quality Services
Like Googl, Goog also offers quality products and services to its users. It has developed some amazing apps including Gmail, Maps, YouTube etc. Moreover, Google's customer service team works 24/7 to provide assistance to its users.
2) Highly Competitive Market
As mentioned earlier, since Goog is already established in many industries, it enjoys a competitive market. The reason behind this is simple; people are used to searching things online with Google. So they don't have much choice but to use Google.
3) No Antitrust Investigation
Goog isn't facing an antitrust probe right now unlike Googl. If there ever comes a day when Goog gets investigated, then we can expect Googl stock price to fall drastically.
4) Strong Brand Value
As far as brand values go, Goog is way ahead of Googl. People trust Goog because it is widely known among them. They know how reliable Goog is and hence, they prefer using Goog over Googl whenever possible.
Goog Vs Googl: Frequently Asked Questions
1. Is Googl worth buying?
Yes! Although Googl is currently trading at $869 per share, it could easily reach $1000 or even more if the company continues growing at current pace.
2. How do I invest in Googl?
You can buy shares of Googl from various brokers like Fidelity Brokerage Company LLC.
3. What should be my investment objective?
You need to decide whether you want long term growth or short term profits. There are two ways to approach investing: either try to pick stocks that offer high returns, or focus on picking stable small cap stocks that pay regular income checks.
Goog Vs Googl: Conclusion
Both these stocks offer excellent returns if invested wisely. But I would suggest investors invest more money in Googl rather than Goog due to better profitability and lower risk factors associated with Googl.