Microsoft (MSFT) vs Alphabet (GOOGL): Stock Comparison
Data as of November 7, 2026. Refreshed weekly from SEC filings and market data.
Alphabet is cheaper on earnings, at 14.9 times against 27.9; Alphabet keeps the higher net margin (50.0% against 41.2%); Alphabet grew revenue faster over the last year (22.2% against 17.9%); dividend yield is about the same (0.7% and 0.3%). Microsoft clears 2 of this site's 8 value filters and Alphabet 4. Figures are as of November 7, 2026; each is on the page below with its source.
How do Microsoft and Alphabet compare on the numbers?
| Measure | Microsoft (MSFT) | Alphabet (GOOGL) | Clearer lead |
|---|---|---|---|
| Share price | $530.61 | $284.78 | |
| Market value | $3.98 trillion | $3.51 trillion | |
| P/E ratio (trailing) | 27.9 | 14.9 | GOOGL |
| PEG ratio | 1.53 | 0.88 | GOOGL |
| Free-cash-flow yield | 1.5% | 1.8% | About the same |
| Net profit margin | 41.2% | 50.0% | GOOGL |
| Revenue growth, last year | 17.9% | 22.2% | GOOGL |
| Return on equity | 33.2% | 42.6% | GOOGL |
| Debt to equity | 0.23 | 0.18 | GOOGL |
| Dividend yield | 0.7% | 0.3% | About the same |
| Margin of safety (DCF) | -288.7% | -219.0% | GOOGL |
| Value filters passed (of 8) | 2 | 4 | GOOGL |
| Distance from 52-week high | -4.5% | -29.3% |
How have Microsoft and Alphabet shares done against each other?
Microsoft 157Alphabet 191
Each share price set to 100 on Nov 2021, to Nov 2026. Price only: dividends are not included.
From Nov 2021 to Nov 2026, Microsoft shares are up 57% and Alphabet shares up 91%, so Alphabet has pulled ahead of Microsoft by 34 points of the starting price. The deepest fall from a prior high in that window was 35% for Microsoft and 42% for Alphabet.
| Period | Microsoft (MSFT) | Alphabet (GOOGL) |
|---|---|---|
| Last 1 year | +6.7% | +0.0% |
| Last 3 years | +48.8% | +118.6% |
| Last 5 years | +57.9% | +91.3% |
Which has grown faster, Microsoft or Alphabet?
Over 5 years, Microsoft grew revenue 14.6% a year and earnings per share 17.4% a year; Alphabet grew revenue 17.2% and earnings per share 29.8%. Its net margin averaged 36.6% at Microsoft and 27.2% at Alphabet.
| Measure | Microsoft (MSFT) | Alphabet (GOOGL) |
|---|---|---|
| Latest fiscal year ended | Jun 2026 | Dec 2025 |
| Revenue, first year to latest | $168 billion to $332 billion | $183 billion to $403 billion |
| Revenue growth per year | 14.6% | 17.2% |
| Earnings per share, first year to latest | $8.05 to $17.95 | $2.93 to $10.81 |
| Earnings per share growth per year | 17.4% | 29.8% |
| Net margin, latest year | 40.3% | 32.8% |
| Net margin, average of the years | 36.6% | 27.2% |
| Free cash flow margin, latest year | 20.2% | 18.2% |
From each company's 10-K filings (SEC EDGAR), over its latest 5 years. Fiscal years end in different months, so each is shown for its own latest 5 years.
What growth does each share price assume?
| Measure | Microsoft (MSFT) | Alphabet (GOOGL) |
|---|---|---|
| Free cash flow growth the price implies | n/a | 38.6% a year |
| Free cash flow per share | $7.99 | $5.23 |
| Margin of safety on this site's DCF | -288.7% | -219.0% |
Microsoft's price is above what this site's DCF gives even at 40% a year of free cash flow growth, so the price assumes more than any growth rate tested.
At $284.78, Alphabet's price implies free cash flow growth of 38.6% a year, fading to 2.5% over 10 years. That is more growth than the 8% baseline.
The same model and baseline as every stock page. A price that asks for less growth is not a better company, only a lower bar to clear.
Where is each stronger?
Where Microsoft leads
- A higher net margin in its latest filed year: 40.3% against 32.8%
- A higher average net margin: 36.6% against 27.2%
- A higher free-cash-flow margin in its latest filed year: 20.2% against 18.2%
Where Alphabet leads
- Lower P/E: 14.9 against 27.9
- Lower PEG: 0.88 against 1.53
- Higher net margin: 50.0% against 41.2%
- Faster revenue growth last year: 22.2% against 17.9%
- Higher return on equity: 42.6% against 33.2%
- Less debt for its equity: 0.18 against 0.23
- Higher margin of safety on this site's DCF: -219.0% against -288.7%
- More of the 8 value filters: 4 against 2
- Faster revenue growth over its filed record: 17.2% against 14.6%
- Faster earnings-per-share growth over its filed record: 29.8% against 17.4%
About the same on: free-cash-flow yield, dividend yield. A lead needs a clear gap (10% apart on a ratio, 1 point on a percentage), so a rounding difference never names a winner. A lead on one measure is not a verdict on the company.
How do the businesses differ?
Microsoft. Microsoft sells software, cloud computing and devices. Its Azure cloud platform and Microsoft 365 business subscriptions are the main profit engines, alongside Windows, LinkedIn, GitHub and the Xbox gaming business.
Alphabet. Alphabet is the parent of Google. It earns most of its money from advertising on Google Search, YouTube and its ad network, and sells cloud computing through Google Cloud. It also funds long-shot bets such as self-driving company Waymo.
Microsoft is in Technology and Alphabet in Media.
What stands out about Microsoft
- Misses 4 of the 8 value filters. It fails Trailing P/E < 25 (27.90), PEG Ratio < 1.5 (1.53) and Price/Book < 8 (8.46) and 1 more; the other 2 pass and 2 were not evaluated.
- The margin of safety is falling. It went from -245% on Oct 7 to -289% on Nov 7 across 8 weekly readings.
- Strongest against peers: net margin. At 41.2% (peer median 17.3%) it ranks 6th of 44 among technology stocks this site tracks.
What stands out about Alphabet
- Misses 2 of the 8 value filters. It fails Price/Sales < 7 (7.45) and EPS Growth YoY > -5% (-25.3%); the other 4 pass and 2 were not evaluated.
- Close to its 52-week low. At $284.78, GOOGL is 6.5% above its low of $267.47 and 29.3% below its high of $402.62.
- Weakest against peers: dividend yield. At 0.30% (peer median 1.04%) it ranks 7th of 7 among media stocks this site tracks.
Frequently asked questions about Microsoft and Alphabet
Which is cheaper, Microsoft or Alphabet?
On trailing earnings, Alphabet is cheaper: Microsoft trades at 27.9 times and Alphabet at 14.9 times. On free cash flow, the yields are 1.5% and 1.8%. Cheaper is not the same as better value: read the growth each price assumes below.
Which pays the higher dividend, Microsoft or Alphabet?
Their yields are about the same: Microsoft 0.7% and Alphabet 0.3% over the last year.
Which has grown faster, Microsoft or Alphabet?
Over their latest filed five years, Microsoft grew revenue 14.6% a year and Alphabet 17.2%; earnings per share grew 17.4% and 29.8% a year.
Which has more debt, Microsoft or Alphabet?
Microsoft has more debt for its equity: debt to equity is 0.23 for Microsoft and 0.18 for Alphabet. A very high figure can also come from buybacks that shrank equity.
Which is more profitable, Microsoft or Alphabet?
Alphabet keeps more of each sales dollar as profit: 41.2% for Microsoft and 50.0% for Alphabet, with a return on equity of 33.2% and 42.6%.
Which passes more of the 8 value filters?
Alphabet clears more: Microsoft 2 of 8 and Alphabet 4 of 8. The filters are this site's own value rules, not a prediction.
Where do these numbers come from?
Prices, ratios and yield are from this site's weekly data as of November 7, 2026; growth and margins by year are from each company's 10-K filings (sources on Microsoft and Alphabet). The DCF is the same model on every stock page. See Editorial Standards. Educational, not investment advice.