Alphabet Vs Amazon

$161.8 billion - up from $136.8 billion in the previous year

$280.5 billion - up from $232.8 billion in the previous year


Revenue


Google network ads $134.8 billion - 83.3% of total revenue

Online stores $141.2 billion - 50.3% of total revenue


Main Income


Google - YouTube - Cloud Services - Google Fiber - Waymo - DeepMind etc

Online retail - Physical products - AWS - Prime subscription - IMDb - Wholefoods - Twitch etc


Income Streams


$1.03 trillion

$1.55 trillion


Market cap


123,048

840,000


No. Employees


The extents of the chart represent the higher value with the lower value being a percentage of the higher value. Amounts in the first section are in USD. Values are from 2019 financial year unless stated otherwise. Date - 16th July 2020

Data Visualisation

Click a title in the legend to toggle the data shown in the chart.

I have included data for each company in FAANG to compare how Alphabet and Amazon compare visually to other tech giants. For the radar chart, I had to find a way to normalise each feature so one didn't overpower all of the others. As you can imagine, the number for revenue is going to be on a completely different scale and look different to one for total number of employees.

As a result of my scaling and my choice of chart, some companies are favoured heavily over others. Amazon takes up most of the chart, only beaten on one metric, where Netflix is just a blip in the middle. Does this reflect real life? I will explain why I chose each metric below and what I think it does to add value to the chart.

Revenue

The revenue is a good measure of how well a company is doing and is an easy way to make a quick comparison between different companies. Revenue is the total income from the sale of good and services.

I chose this and not profit because profit is what is left in the business after all expenses. Including employee salaries. Amazon and Alphabet are both smart when it comes to the amount they have in the business at the end of each quarter and profit at this size of business won't tell us much.

Revenue is shown on the chart as a percentage of the company in FAANG with the highest revenue. E.g. Amazon has the highest revenue, making reach the extents of the chart. Facebook has 25% of the revenue of Amazon, making it sit at 25 on the axis.

Income Streams

Streams is an indicator for diversity of products and services. Originally, I wanted to give a point for each industry the company occupied. Eventually I settled on the number of high income active subsidiaries of the company.

It was difficult to get a number for each because of the company structures and difficulty of finding the correct information. For example, these tech giants have hundreds of acquisitions going back years and years.

Which ones have been merged into parent company? which ones still operate under their original name? Also, Alphabet has a number of subsidiaries, one of which is Google. Then Google has its own list of subsidiaries.

Again, this axis show the company with the highest number of individual income streams reaching the full extents with every other company being represented by a percentage of this.

Market cap

Market capitalisation is the price of a single share in the company multiplied by the total number of outstanding shares. I'm not an expert in the stock market but like revenue, market cap is a way of getting a quick indicator of a company's importance.

It's amazing to think that two of the 5 companies in FAANG have well over a $1 trillion market cap.

To calculate this one, I took the highest market cap (Apple) and the other companies are a percentage of this on the chart.

Number of Employees

A straight forward one here. The company with the highest number of employees is at 100 and the others are a percentage of this.

I chose to do it this way because employment helps the economy by giving the public an opportunity to earn money then buy goods & services.

I considered engineering the feature to give a higher rating to companies that earn more per employee but I decided against it. These companies hold a lot of responsibility and power.

While it might generate more profit to employ less people and work them harder, these employees would carry a heavier burden and would likely be more stressed. Which, if it doesn't lower productivity, it will increase churn rate.

Main Income

As mentioned above, this feature favoured some companies much more than others. Like income streams, it is a measure of diversity and a company is rewarded for having a lower percentage total revenue for their top source of income. Amazon being the most diverse by far.

Where income streams measures the total, main income gives an idea of how much dependence the company has on their main source of income.

I took the highest earning stream of income for the company and made it a percentage of their total income. Then I reversed this percentage by subtracting 100. After this I made the highest 100 on the chart and the rest became a percentage of this.

Notes

This page was made using React/ Gatsby with Chart js for the Radar Chart. Get in touch through the about page if you want learn more or ask any questions.

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Sources

statisa.com - General company statistics

statistic.com - General company statistics

visualcapitalist.com - How Amazon Makes money

investopedia.com - How Netflix Makes money

investopedia.com - Apple's Lines of Business

investor.fb.com - Facebook's Financial Highlights

en.wikipedia.org - Apple mergers and acquisitions

investopedia.com - Companies owned by Facebook

kamilfranek.com - Alphabet company structure

Wikipedia.org -List of Alphabet subsidiaries

en.wikipedia.org - Amazon subsidiaries

investopedia.com - Businesses owned by Amazon

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