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.
| Metric | GOOGL | MSFT |
|---|---|---|
| Size and price | ||
| Market cap | $3.4T | $3.9T |
| Share price | $279.84 | $521.91 |
| Change, 1 year | 1.9% | −3.6% |
| Change, 5 years | 88.0% | 55.3% |
| Beta (5Y) | 1.20 | 1.14 |
| Employees | 191K | 223K |
| StockData Score | ||
| Total score | 21 | 22 (better) |
| Valuation score | 4 (better) | 2 |
| Growth score | 5 (better) | 4 |
| Performance score | 6 | 6 |
| Health score | 5 | 6 (better) |
| Dividend score | 1 | 4 (better) |
| Valuation | ||
| P/E | 14.1× (better) | 29.1× |
| P/S | 7.7× (better) | 11.7× |
| P/B | 5.3× (better) | 8.8× |
| EV/EBITDA | 22.2× (better) | 24.7× |
| P/FCF | 64.2× | 57.9× (better) |
| PEG | 0.42 (better) | 1.27 |
| FCF yield | 1.6% | 1.7% (better) |
| Fair value | $388.19 | $510.33 |
| Margin of safety | 27.9% (better) | −2.3% |
| Growth | ||
| Revenue growth (TTM) | 20.1% (better) | 17.8% |
| Revenue growth, 5Y average | 17.2% (better) | 14.6% |
| Net income growth (TTM) | 111% (better) | 31.3% |
| EPS growth (TTM) | 112% (better) | 31.6% |
| EPS growth, 5Y average | 29.8% (better) | 17.4% |
| Profitability | ||
| Gross margin | 60.9% | 67.9% (better) |
| Operating margin | 33.1% | 46.8% (better) |
| Net margin | 54.8% (better) | 40.3% |
| FCF margin | 11.9% | 20.2% (better) |
| Return on equity | 48.7% (better) | 34.0% |
| Return on invested capital | 30.4% | 35.9% (better) |
| Financial health | ||
| Debt / equity | 0.16 | 0.09 (better) |
| Net debt / EBITDA | −0.96 | −0.24 |
| Interest coverage | 65.6× (better) | 50.9× |
| Current ratio | 2.72 (better) | 1.23 |
| Altman Z-score | 9.34 (better) | 9.14 |
| Piotroski F-score | 8 (better) | 6 |
| Dividends and buybacks | ||
| Dividend yield | 0.31% | 0.70% (better) |
| Payout ratio | – | 19.8% |
| Years of dividend growth | 1 | 16 (better) |
| Dividend growth, 5Y average | – | 10.2% |
| Buyback yield | 0.51% | 0.52% (better) |
| Shareholder yield | 0.82% | 1.2% (better) |
| Ownership | ||
| Held by institutions | 66.2% | 74.1% |
| Held by insiders | 6.1% | 0.04% |
| Insider net buying, 12 months | −$132M | −$113M (better) |
| Superinvestors holding | 31 (better) | 21 |
| Short interest, % of float | – | 0.82% |
Go deeper
- GOOGL stock overview
- GOOGL income statement
- GOOGL valuation and score
- MSFT stock overview
- MSFT income statement
- MSFT valuation and score
Other comparisons
For information only, not investment advice. Check the source filings before relying on any figure.