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 July 28, 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.
$332.60Communication ServicesDelayed quote: Jul 28, 2026, 4:00 PM EDT
MSFT
Microsoft Corporation
$393.35TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT
Total return — GOOG vs MSFT
growth of $100 · dividends reinvested · last 22yGOOG +13697.7%MSFT +1971.9%GOOG compounded faster
Log scale — wide-divergence pair
GOOG MSFT
GOOG vs MSFT: by the numbers
- •GOOG is the larger company ($4.03T vs $2.92T market cap).
- •GOOG trades at the lower trailing earnings multiple (16.40 vs 23.16 P/E), one valuation lens rather than an overall verdict.
- •GOOG converts more revenue to profit (54.76% vs 39.34% net margin).
- •GOOG grew revenue faster over the past five years (15.15% vs 14.75% CAGR).
- •MSFT pays the higher dividend yield (0.91% vs 0.26%).
Metrics side by side
Valuation
| Metric | GOOG | MSFT |
|---|---|---|
| P/E ratio | 16.40 | 23.16 |
| Forward P/E | 16.72 | 22.87 |
| P/S ratio | 9.01 | 9.10 |
| P/B ratio | 6.28 | 6.99 |
| PEG ratio | 0.84 | 2.34 |
| EV / EBITDA | 23.57 | 15.53 |
| FCF yield | 1.05% | 2.52% |
Profitability
| Metric | GOOG | MSFT |
|---|---|---|
| Gross margin | 60.90% | 68.31% |
| Operating margin | 33.12% | 46.80% |
| Net margin | 54.76% | 39.34% |
| ROE | 38.13% | 30.22% |
| ROIC | 21.82% | 21.63% |
Dividends
| Metric | GOOG | MSFT |
|---|---|---|
| Dividend yield | 0.26% | 0.91% |
| Payout ratio | 7.79% | 25.99% |
Growth (annualized)
| Metric | GOOG | MSFT |
|---|---|---|
| Revenue CAGR (5Y) | 15.15% | 14.75% |
| EPS CAGR (5Y) | 29.81% | 18.68% |
| FCF CAGR (5Y) | 11.33% | 6.27% |
| Total return CAGR (5Y) | 19.75% | 7.19% |
Frequently asked
- Which has the lower trailing P/E, GOOG or MSFT?
- GOOG has the lower trailing P/E: GOOG trades at 16.40 and MSFT at 23.16. 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 14.75%.
- Does GOOG or MSFT pay a bigger dividend?
- GOOG yields 0.26% and MSFT yields 0.91% based on trailing dividends and the latest price.
- Is GOOG or MSFT more profitable?
- GOOG runs the higher net margin — GOOG at 54.76% versus MSFT at 39.34%.
- How have GOOG and MSFT total returns compared?
- Over the past 10 years, GOOG delivered 24.58% and MSFT delivered 22.86% 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 July 28, 2026.