Alphabet Inc. (GOOGL) vs Microsoft Corporation (MSFT)
MSFT leads on 11 of 16 compared metrics.
A side-by-side comparison of Alphabet Inc. and Microsoft Corporation across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 13, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
GOOGL
Alphabet Inc.
$359.68Communication Services
MSFT
Microsoft Corporation
$390.74Technology
Not enough overlapping price history to compare GOOGL and MSFT.
GOOGL vs MSFT: by the numbers
- •GOOGL is the larger company ($4.35T vs $2.90T market cap).
- •MSFT trades at the lower earnings multiple (23.26 vs 27.44 P/E).
- •MSFT converts more revenue to profit (39.34% vs 37.91% net margin).
- •GOOGL grew revenue faster over the past five years (16.53% vs 14.75% CAGR).
- •MSFT pays the higher dividend yield (0.91% vs 0.24%).
Which is better, GOOGL or MSFT?
Metric tally: GOOGL 5 · MSFT 11It depends on what you're optimizing for:
ValueMSFT(lower P/E)
GrowthGOOGL(faster 5Y revenue CAGR)
IncomeMSFT(higher dividend yield)
Valuation
| Metric | GOOGL | MSFT |
|---|---|---|
| P/E ratio | 27.44 | 23.26● |
| Forward P/E | 24.41 | 20.11● |
| P/S ratio | 10.42 | 9.14● |
| P/B ratio | 9.19 | 7.02● |
| PEG ratio | 0.84● | 2.34 |
| EV / EBITDA | 20.36 | 14.60● |
| FCF yield | 1.46% | 2.51%● |
Profitability
| Metric | GOOGL | MSFT |
|---|---|---|
| Gross margin | 60.37% | 68.31%● |
| Operating margin | 32.70% | 46.80%● |
| Net margin | 37.91% | 39.34%● |
| ROE | 33.46%● | 30.22% |
| ROIC | 21.82% | 21.63% |
Dividends
| Metric | GOOGL | MSFT |
|---|---|---|
| Dividend yield | 0.24% | 0.91%● |
| Payout ratio | 7.79% | 25.99% |
Growth (annualized)
| Metric | GOOGL | MSFT |
|---|---|---|
| Revenue CAGR (5Y) | 16.53%● | 14.75% |
| EPS CAGR (5Y) | 29.81%● | 18.68% |
| FCF CAGR (5Y) | 4.89% | 6.27%● |
| Total return CAGR (5Y) | 24.45%● | 9.56% |
Frequently asked
- Which is better, GOOGL or MSFT?
- It depends on your goal. value: MSFT (lower P/E); growth: GOOGL (faster 5Y revenue CAGR); income: MSFT (higher dividend yield). Across all compared metrics, MSFT leads 11 to 5.
- Is GOOGL or MSFT cheaper?
- On trailing earnings, MSFT is cheaper: GOOGL trades at a 27.44 P/E and MSFT at 23.26.
- Which has grown faster, GOOGL or MSFT?
- Over the past five years, GOOGL grew revenue faster — GOOGL at a 16.53% CAGR versus MSFT at 14.75%.
- Does GOOGL or MSFT pay a bigger dividend?
- GOOGL yields 0.24% and MSFT yields 0.91% based on trailing dividends and the latest price.
- Is GOOGL or MSFT more profitable?
- MSFT runs the higher net margin — GOOGL at 37.91% versus MSFT at 39.34%.
- Which has been the better investment, GOOGL or MSFT?
- Over the past 10-year, GOOGL delivered the higher annualized total return — GOOGL at 25.75% versus MSFT at 23.98%. 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 June 13, 2026.