Alphabet Inc. (GOOGL) 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 10, 2026. Differences are shown without an overall score or investment verdict.
Different business models: GOOGL is classified in Communication Services; MSFT is classified in Technology. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
GOOGL
Alphabet Inc.
$338.50Communication ServicesDelayed quote: Sep 11, 2026, 4:00 PM EDT
MSFT
Microsoft Corporation
$495.63TechnologyDelayed quote: Sep 11, 2026, 4:00 PM EDT
Total return — GOOGL vs MSFT
growth of $100 · dividends reinvested · last 10yGOOGL +744.3% (+23.8%/yr)MSFT +874.1% (+25.6%/yr)MSFT compounded faster over this window
GOOGL MSFT
GOOGL vs MSFT: by the numbers
- •GOOGL is the larger company ($4.10T vs $3.68T market cap).
- •GOOGL trades at the lower trailing earnings multiple (17.00 vs 27.61 P/E), one valuation lens rather than an overall verdict.
- •GOOGL converts more revenue to profit (54.77% vs 40.31% net margin).
- •GOOGL 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 | GOOGL | MSFT |
|---|---|---|
| P/E ratio | 17.00 | 27.61 |
| Forward P/E | 16.46 | 25.13 |
| P/S ratio | 9.19 | 11.09 |
| P/B ratio | 6.40 | 8.32 |
| EV / EBITDA | 24.03 | 19.55 |
| FCF yield | 1.30% | 1.82% |
Profitability
| Metric | GOOGL | 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 | GOOGL | MSFT |
|---|---|---|
| Dividend yield | 0.26% | 0.74% |
| Payout ratio | 4.27% | 20.28% |
Growth (annualized)
| Metric | GOOGL | 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) | 18.97% | 11.66% |
Frequently asked
- Which has the lower trailing P/E, GOOGL or MSFT?
- GOOGL has the lower trailing P/E: GOOGL trades at 17.00 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, GOOGL or MSFT?
- Over the past five years, GOOGL grew revenue faster — GOOGL at a 15.15% CAGR versus MSFT at 14.57%.
- Does GOOGL or MSFT pay a bigger dividend?
- GOOGL yields 0.26% and MSFT yields 0.74% based on trailing dividends and the latest price.
- Is GOOGL or MSFT more profitable?
- GOOGL runs the higher net margin — GOOGL at 54.77% versus MSFT at 40.31%.
- How have GOOGL and MSFT total returns compared?
- Over the past 10 years, GOOGL delivered 23.89% 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 10, 2026.