Google Inc (GOOG) Releases Impressive Google+ Data

When checking out Facebook’s current valuation, forward earnings growth of 26-27% is expected annually, but the stock is still expensive for this potential, as its shares sport a whopping PEG ratio of 9.2. From a cash flow perspective, we can see that the company is valued much more closely to Google Inc. (NASDAQ:GOOG) (5.6X to 5.0X), and is cheaper than other competitor LinkedIn Corporation (NYSE:LNKD) at 17.3X.

Even though much is made about Apple’s $120 billion pile of cash, it’s notable that investors are valuing it at a decently high 17 times its value, above GOOG, FB, and even Microsoft Corporation (NASDAQ:MSFT) at 3.4X.

On the whole, we think that Facebook has a bit more potential than its consensus earnings estimates indicate, as notable tech analyst Gene Munster believes that the company’s entry into the e-commerce sector can help it to make “$10 billion in commerce-related revenue by 2015.” While we don’t know if Zuckerberg and Co. will introduce a quick-purchase option like the ‘Want,’ button for example, which Munster speculates about (see E-Commerce Can Make Facebook Billions), the company’s gift-giving platform is a step in the right direction.

Keeping this bullish forecast in mind, we can then see that Facebook’s actual earnings valuation may be significantly lower than the metrics indicate, and cash flow valuation is already bullish. Google, on the other hand, is cheaper than it has been historically, and investors can’t really go wrong with the Internet ad giant that is expected to grow earnings by a solid 15-16% annually over the next few years.

It’d be nice to see a regular dividend paid by the company, as Apple (1.9%) and Microsoft (3.4%) offer decent yield for income-seeking investors, but Facebook and LinkedIn don’t offer a dividend either at the moment.

In the hedge fund world, some of the industry’s biggest names were piling into Google Inc (NASDAQ:GOOG) last quarter, as it is the second most loved stock among the 400 funds we track, with 132 filers. With 146 managers holding positions, Apple is the top stock among hedge funds, while Facebook (43), Microsoft (96), and LinkedIn (28) have less interest. Some of the top names in Google include Stephen Mandel (see Mandel’s newest stock picks), John Griffin, and George Soros. Check out Soros’ mammoth portfolio here, and continue reading at Insider Monkey for more Google and Facebook News.