Comprehensive Stock Comparison
Compare Yelp Inc. (YELP) vs Alphabet Inc. (GOOGL) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | GOOGL | 15.1% revenue growth vs YELP's 5.6% |
| Value | YELP | Lower P/E (10.8x vs 27.3x), PEG 0.37 vs 0.91 |
| Quality / Margins | GOOGL | 32.8% net margin vs YELP's 9.9% |
| Stability / Safety | YELP | Beta 0.86 vs GOOGL's 0.99, lower leverage |
| Dividends | GOOGL | 0.3% yield; 2-year raise streak; YELP pays no meaningful dividend |
| Momentum (1Y) | GOOGL | +83.6% vs YELP's -35.0% |
| Efficiency (ROA) | GOOGL | 22.2% ROA vs YELP's 15.2%, ROIC 24.7% vs 20.7% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Yelp operates a crowd-sourced review platform connecting consumers with local businesses — primarily restaurants, retail, and services — across the U.S. and internationally. It generates revenue primarily from advertising services sold to businesses — including cost-per-click search ads and subscription-based listing enhancements — with a smaller portion from reservation and waitlist management tools. Its competitive moat lies in its massive, user-generated review database and network effects, where more reviews attract more users, which in turn attracts more businesses to advertise.
Alphabet is a technology conglomerate best known as the parent company of Google, which dominates the digital advertising market through search, YouTube, and display ads. It generates over 80% of its revenue from advertising, with the remainder coming from Google Cloud services, hardware sales, and subscription products like YouTube Premium. Its primary moat is the massive network effect of its search ecosystem — billions of users, advertisers, and content creators locked into its platforms through data, scale, and habit.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
GOOGL leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). YELP leads in 1 (Valuation Metrics). 1 tied.
Financial Metrics (TTM)
GOOGL is the larger business by revenue, generating $402.9B annually — 275.0x YELP's $1.5B. GOOGL is the more profitable business, keeping 32.8% of every revenue dollar as net income compared to YELP's 9.9%. On growth, GOOGL holds the edge at +18.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | YELPYelp Inc. | GOOGLAlphabet Inc. |
|---|---|---|
| RevenueTrailing 12 months | $1.5B | $402.9B |
| EBITDAEarnings before interest/tax | $238M | $150.2B |
| Net IncomeAfter-tax profit | $146M | $132.2B |
| Free Cash FlowCash after capex | $324M | $73.3B |
| Gross MarginGross profit ÷ Revenue | +90.3% | +59.7% |
| Operating MarginEBIT ÷ Revenue | +12.6% | +32.0% |
| Net MarginNet income ÷ Revenue | +9.9% | +32.8% |
| FCF MarginFCF ÷ Revenue | +22.1% | +18.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | -0.5% | +18.1% |
| EPS Growth (YoY)Latest quarter vs prior year | -1.6% | +31.2% |
Valuation Metrics
At 11.9x trailing earnings, YELP trades at a 59% valuation discount to GOOGL's 28.8x P/E. Adjusting for growth (PEG ratio), YELP offers better value at 0.40x vs GOOGL's 0.97x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | YELPYelp Inc. | GOOGLAlphabet Inc. |
|---|---|---|
| Market CapShares × price | $1.5B | $1.69T |
| Enterprise ValueMkt cap + debt − cash | $1.3B | $1.73T |
| Trailing P/EPrice ÷ TTM EPS | 11.86x | 28.84x |
| Forward P/EPrice ÷ next-FY EPS est. | 10.76x | 27.26x |
| PEG RatioP/E ÷ EPS growth rate | 0.40x | 0.97x |
| EV / EBITDAEnterprise value multiple | 6.26x | 11.54x |
| Price / SalesMarket cap ÷ Revenue | 1.04x | 4.20x |
| Price / BookPrice ÷ Book value/share | 2.12x | 9.18x |
| Price / FCFMarket cap ÷ FCF | 5.90x | 23.10x |
Profitability & Efficiency
GOOGL delivers a 31.8% return on equity — every $100 of shareholder capital generates $32 in annual profit, vs $20 for YELP. YELP carries lower financial leverage with a 0.06x debt-to-equity ratio, signaling a more conservative balance sheet compared to GOOGL's 0.17x.
| Metric | YELPYelp Inc. | GOOGLAlphabet Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +20.5% | +31.8% |
| ROA (TTM)Return on assets | +15.2% | +22.2% |
| ROICReturn on invested capital | +20.7% | +24.7% |
| ROCEReturn on capital employed | +18.1% | +30.3% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 7 |
| Debt / EquityFinancial leverage | 0.06x | 0.17x |
| Net DebtTotal debt minus cash | -$174M | $41.3B |
| Cash & Equiv.Liquid assets | $217M | $30.7B |
| Total DebtShort + long-term debt | $43M | $72.0B |
| Interest CoverageEBIT ÷ Interest expense | — | 903.26x |
Total Returns (with DRIP)
A $10,000 investment in GOOGL five years ago would be worth $30,266 today (with dividends reinvested), compared to $5,870 for YELP. Over the past 12 months, GOOGL leads with a +83.6% total return vs YELP's -35.0%. The 3-year compound annual growth rate (CAGR) favors GOOGL at 51.5% vs YELP's -9.4% — a key indicator of consistent wealth creation.
| Metric | YELPYelp Inc. | GOOGLAlphabet Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -26.2% | -1.1% |
| 1-Year ReturnPast 12 months | -35.0% | +83.6% |
| 3-Year ReturnCumulative with dividends | -25.7% | +247.8% |
| 5-Year ReturnCumulative with dividends | -41.3% | +202.7% |
| 10-Year ReturnCumulative with dividends | +10.1% | +773.4% |
| CAGR (3Y)Annualised 3-year return | -9.4% | +51.5% |
Risk & Volatility
YELP is the less volatile stock with a 0.86 beta — it tends to amplify market swings less than GOOGL's 0.99 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. GOOGL currently trades 89.3% from its 52-week high vs YELP's 54.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | YELPYelp Inc. | GOOGLAlphabet Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.86x | 0.99x |
| 52-Week HighHighest price in past year | $41.22 | $349.00 |
| 52-Week LowLowest price in past year | $19.60 | $140.53 |
| % of 52W HighCurrent price vs 52-week peak | +54.1% | +89.3% |
| RSI (14)Momentum oscillator 0–100 | 40.3 | 40.8 |
| Avg Volume (50D)Average daily shares traded | 1.1M | 28.2M |
Analyst Outlook
Wall Street rates YELP as "Hold" and GOOGL as "Buy". Consensus price targets imply 46.3% upside for YELP (target: $33) vs 14.6% for GOOGL (target: $357). GOOGL is the only dividend payer here at 0.26% yield — a key consideration for income-focused portfolios.
| Metric | YELPYelp Inc. | GOOGLAlphabet Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $32.60 | $357.19 |
| # AnalystsCovering analysts | 67 | 81 |
| Dividend YieldAnnual dividend ÷ price | — | +0.3% |
| Dividend StreakConsecutive years of raises | — | 2 |
| Dividend / ShareAnnual DPS | — | $0.82 |
| Buyback YieldShare repurchases ÷ mkt cap | +17.1% | +2.7% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Yelp Inc. (YELP) | 100 | 86.57 | -13.4% |
| Alphabet Inc. (GOOGL) | 100 | 495.8 | +395.8% |
Alphabet Inc. (GOOGL) returned +203% over 5 years vs Yelp Inc. (YELP)'s -41%. A $10,000 investment in GOOGL 5 years ago would be worth $30,266 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Yelp Inc. (YELP) | $713M | $1.4B | +98.0% |
| Alphabet Inc. (GOOGL) | $90.3B | $403.0B | +346.4% |
Alphabet Inc.'s revenue grew from $90.3B (2016) to $403.0B (2025) — a 18.1% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Yelp Inc. (YELP) | -0.7% | 9.4% | +1536.6% |
| Alphabet Inc. (GOOGL) | 21.6% | 32.8% | +52.0% |
Alphabet Inc.'s net margin went from 22% (2016) to 33% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Yelp Inc. (YELP) | 24 | 20.6 | -14.2% |
| Alphabet Inc. (GOOGL) | 58.5 | 29 | -50.4% |
Yelp Inc. has traded in a 21x–73x P/E range over 7 years; current trailing P/E is ~12x. Alphabet Inc. has traded in a 19x–59x P/E range over 9 years; current trailing P/E is ~29x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Yelp Inc. (YELP) | -0.06 | 1.88 | +3207.4% |
| Alphabet Inc. (GOOGL) | 1.39 | 10.81 | +677.7% |
Alphabet Inc.'s EPS grew from $1.39 (2016) to $10.81 (2025) — a 26% CAGR.
Chart 6Free Cash Flow — 5 Years
Yelp Inc. generated $248M FCF in 2024 (+35% vs 2021). Alphabet Inc. generated $73B FCF in 2025 (+9% vs 2021).
YELP vs GOOGL: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is YELP or GOOGL a better buy right now?
Yelp Inc. (YELP) offers the better valuation at 11.9x trailing P/E (10.8x forward), making it the more compelling value choice. Analysts rate Alphabet Inc. (GOOGL) a "Buy" — based on 81 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — YELP or GOOGL?
On trailing P/E, Yelp Inc. (YELP) is the cheapest at 11.9x versus Alphabet Inc. at 28.8x. On forward P/E, Yelp Inc. is actually cheaper at 10.8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Yelp Inc. wins at 0.37x versus Alphabet Inc.'s 0.91x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — YELP or GOOGL?
Over the past 5 years, Alphabet Inc. (GOOGL) delivered a total return of +202.7%, compared to -41.3% for Yelp Inc. (YELP). A $10,000 investment in GOOGL five years ago would be worth approximately $30K today (assuming dividends reinvested). Over 10 years, the gap is even starker: GOOGL returned +773.4% versus YELP's +10.1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — YELP or GOOGL?
By beta (market sensitivity over 5 years), Yelp Inc. (YELP) is the lower-risk stock at 0.86β versus Alphabet Inc.'s 0.99β — meaning GOOGL is approximately 15% more volatile than YELP relative to the S&P 500. On balance sheet safety, Yelp Inc. (YELP) carries a lower debt/equity ratio of 6% versus 17% for Alphabet Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — YELP or GOOGL?
Alphabet Inc. (GOOGL) is the more profitable company, earning 32.8% net margin versus 9.4% for Yelp Inc. — meaning it keeps 32.8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: GOOGL leads at 32.1% versus 10.7% for YELP. At the gross margin level — before operating expenses — YELP leads at 91.2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is YELP or GOOGL more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Yelp Inc. (YELP) is the more undervalued stock at a PEG of 0.37x versus Alphabet Inc.'s 0.91x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Yelp Inc. (YELP) trades at 10.8x forward P/E versus 27.3x for Alphabet Inc. — 16.5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for YELP: 46.3% to $32.60.
07Which pays a better dividend — YELP or GOOGL?
In this comparison, GOOGL (0.3% yield) pays a dividend. YELP does not pay a meaningful dividend and should not be held primarily for income.
08Is YELP or GOOGL better for a retirement portfolio?
For long-horizon retirement investors, Alphabet Inc. (GOOGL) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.99), +773.4% 10Y return). Both have compounded well over 10 years (GOOGL: +773.4%, YELP: +10.1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between YELP and GOOGL?
These companies operate in different sectors (YELP (Communication Services) and GOOGL (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced. In terms of investment character: YELP is a small-cap deep-value stock; GOOGL is a mega-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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