By: Dividend Sensei
Both META and GOOG have been crushed in recent weeks, as advertising has slowed along with the economy.
META is 57% historically undervalued, trading at just 4.9X cash-adjusted earnings and a PEG of 0.32. It could deliver almost 60% annual returns through 2027, if Zuckerberg can deliver the expected growth.
In contrast, GOOG is a global advertising dynamo with a 26% growing cloud business that’s expected to be generating $9 billion in operating profit by 2027, years before Realty Labs MIGHT break even.
GOOG is an AA-rated, Ultra SWAN (sleep well at night) blue-chip with 93rd percentile risk management according to S&P.
META has the potential for 4X returns in 5 years, but GOOG could nearly triple, and deliver 21% annual returns.
One of these tech titans is the smarter buy right now.