Alphabet Inc. (GOOG) vs Microsoft Corporation (MSFT)
A side-by-side comparison of Alphabet Inc. and Microsoft Corporation across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of September 11, 2026. Differences are shown without an overall score or investment verdict.
Different business models: GOOG is classified in Communication Services; MSFT is classified in Technology. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
GOOG
Alphabet Inc.
$335.45Communication ServicesDelayed quote: Sep 11, 2026, 4:00 PM EDT
MSFT
Microsoft Corporation
$495.63TechnologyDelayed quote: Sep 11, 2026, 4:00 PM EDT
Total return — GOOG vs MSFT
growth of $100 · dividends reinvested · last 10yGOOG +771.3% (+24.2%/yr)MSFT +874.1% (+25.6%/yr)MSFT compounded faster over this window
GOOG MSFT
GOOG vs MSFT: by the numbers
- •GOOG is the larger company ($4.07T vs $3.68T market cap).
- •GOOG trades at the lower trailing earnings multiple (16.85 vs 27.61 P/E), one valuation lens rather than an overall verdict.
- •GOOG converts more revenue to profit (54.77% vs 40.31% net margin).
- •GOOG grew revenue faster over the past five years (15.15% vs 14.57% CAGR).
- •MSFT pays the higher dividend yield (0.74% vs 0.26%).
Metrics side by side
Valuation
| Metric | GOOG | MSFT |
|---|---|---|
| P/E ratio | 16.85 | 27.61 |
| Forward P/E | 16.31 | 25.13 |
| P/S ratio | 9.13 | 11.09 |
| P/B ratio | 6.36 | 8.32 |
| EV / EBITDA | 23.88 | 19.55 |
| FCF yield | 1.31% | 1.82% |
Profitability
| Metric | GOOG | MSFT |
|---|---|---|
| Gross margin | 60.90% | 67.94% |
| Operating margin | 33.11% | 46.78% |
| Net margin | 54.77% | 40.31% |
| ROE | 38.13% | 30.23% |
| ROIC | 15.14% | 20.90% |
Dividends
| Metric | GOOG | MSFT |
|---|---|---|
| Dividend yield | 0.26% | 0.74% |
| Payout ratio | 4.27% | 20.28% |
Growth (annualized)
| Metric | GOOG | MSFT |
|---|---|---|
| Revenue CAGR (5Y) | 15.15% | 14.57% |
| EPS CAGR (5Y) | 29.81% | 17.26% |
| FCF CAGR (5Y) | 11.33% | 3.60% |
| Total return CAGR (5Y) | 18.64% | 11.66% |
Frequently asked
- Which has the lower trailing P/E, GOOG or MSFT?
- GOOG has the lower trailing P/E: GOOG trades at 16.85 and MSFT at 27.61. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, GOOG or MSFT?
- Over the past five years, GOOG grew revenue faster — GOOG at a 15.15% CAGR versus MSFT at 14.57%.
- Does GOOG or MSFT pay a bigger dividend?
- GOOG yields 0.26% and MSFT yields 0.74% based on trailing dividends and the latest price.
- Is GOOG or MSFT more profitable?
- GOOG runs the higher net margin — GOOG at 54.77% versus MSFT at 40.31%.
- How have GOOG and MSFT total returns compared?
- Over the past 10 years, GOOG delivered 24.26% and MSFT delivered 25.72% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Alphabet P/E ratioMicrosoft P/E ratioAlphabet dividend yieldMicrosoft dividend yieldAlphabet ROEMicrosoft ROEAlphabet operating marginMicrosoft operating marginAlphabet revenue growthMicrosoft revenue growthAlphabet free cash flowMicrosoft free cash flow
Alphabet & Microsoft appear in these rankings
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Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified September 11, 2026.