StockData

Alphabet vs Microsoft

GOOGL and MSFT side by side, both in computer programming, data processing, and other computer related services. Figures are trailing twelve months unless noted, from SEC filings and end-of-day prices.

How GOOGL and MSFT compare

Alphabet and Microsoft are about the same size, with market caps of $3.4T and $3.9T.

On earnings, Alphabet is cheaper: it trades at 14.1× trailing earnings, against 29.1× for Microsoft.

Alphabet grew revenue faster over the last twelve months (20.1% versus 17.8% for Microsoft).

Alphabet keeps more of each dollar of sales as profit, with a net margin of 54.8% compared with 40.3% at Microsoft.

Both pay dividends: Alphabet yields 0.31% and Microsoft 0.70%.

Microsoft scores higher on the StockData Score (22 against 21 for Alphabet), which adds up 30 checks on valuation, growth, past performance, financial health and dividends.

Key numbers

A dot marks the better figure where higher or lower is clearly better.

MetricGOOGLMSFT
Size and price
Market cap$3.4T$3.9T
Share price$279.84$521.91
Change, 1 year1.9%−3.6%
Change, 5 years88.0%55.3%
Beta (5Y)1.201.14
Employees191K223K
StockData Score
Total score2122 (better)
Valuation score4 (better)2
Growth score5 (better)4
Performance score66
Health score56 (better)
Dividend score14 (better)
Valuation
P/E14.1× (better)29.1×
P/S7.7× (better)11.7×
P/B5.3× (better)8.8×
EV/EBITDA22.2× (better)24.7×
P/FCF64.2×57.9× (better)
PEG0.42 (better)1.27
FCF yield1.6%1.7% (better)
Fair value$388.19$510.33
Margin of safety27.9% (better)−2.3%
Growth
Revenue growth (TTM)20.1% (better)17.8%
Revenue growth, 5Y average17.2% (better)14.6%
Net income growth (TTM)111% (better)31.3%
EPS growth (TTM)112% (better)31.6%
EPS growth, 5Y average29.8% (better)17.4%
Profitability
Gross margin60.9%67.9% (better)
Operating margin33.1%46.8% (better)
Net margin54.8% (better)40.3%
FCF margin11.9%20.2% (better)
Return on equity48.7% (better)34.0%
Return on invested capital30.4%35.9% (better)
Financial health
Debt / equity0.160.09 (better)
Net debt / EBITDA−0.96−0.24
Interest coverage65.6× (better)50.9×
Current ratio2.72 (better)1.23
Altman Z-score9.34 (better)9.14
Piotroski F-score8 (better)6
Dividends and buybacks
Dividend yield0.31%0.70% (better)
Payout ratio–19.8%
Years of dividend growth116 (better)
Dividend growth, 5Y average–10.2%
Buyback yield0.51%0.52% (better)
Shareholder yield0.82%1.2% (better)
Ownership
Held by institutions66.2%74.1%
Held by insiders6.1%0.04%
Insider net buying, 12 months−$132M−$113M (better)
Superinvestors holding31 (better)21
Short interest, % of float–0.82%

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For information only, not investment advice. Check the source filings before relying on any figure.