Seek Returns

GOOGL vs. MSFT: Alphabet vs. Microsoft Stock Comparison

How do Alphabet (GOOGL) and Microsoft (MSFT) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Alphabet (GOOGL) is classified in the Communication Services sector (Media & Entertainment), whereas Microsoft (MSFT) belongs to Information Technology (Software & Services) — their GICS classifications point to very different parts of the market.

Company profile comparison for Alphabet (GOOGL) and Microsoft (MSFT)
Profile ItemGOOGLMSFT
NameAlphabet Inc.Microsoft Corporation
Country/RegionUnited StatesUnited States
GICS SectorCommunication ServicesInformation Technology
GICS Industry GroupMedia & EntertainmentSoftware & Services
GICS IndustryInteractive Media & ServicesSoftware
GICS Sub-IndustryInteractive Media & ServicesSystems Software
Market Capitalization4,230.33 billion USD3,678.62 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateAugust 19, 2004March 13, 1986
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

GOOGL
MSFT
GSPC
Loading price history…
Alphabet (GOOGL) vs. Microsoft (MSFT), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

Loading price history…
Trailing total returns for Alphabet (GOOGL) and Microsoft (MSFT). Returns over one year are annualized.

Calendar-Year Returns

Loading price history…
Calendar-year total returns for Alphabet (GOOGL) and Microsoft (MSFT). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Alphabet (GOOGL) and Microsoft (MSFT)
MetricGOOGLMSFT
Total Return (1Y)70.93%-4.43%
Total Return (3Y, Annualized)38.51%16.10%
Total Return (5Y, Annualized)20.44%12.00%

Risk Profile

Drawdown History

GOOGL
MSFT
GSPC
Loading price history…
Alphabet (GOOGL) vs. Microsoft (MSFT), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

Loading price history…
Distribution of monthly total returns for Alphabet (GOOGL) and Microsoft (MSFT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Alphabet (GOOGL) and Microsoft (MSFT)
MetricGOOGLMSFT
Volatility (1Y, Annualized)32.76%32.14%
Beta (5Y)1.221.11
Max Drawdown (5Y)-44.32%-37.15%
Avg. Volume (3M)32.51M40.35M

Risk-Adjusted Performance

Risk-Return Positioning

Loading chart…
GOOGL and MSFT are plotted by 1-year volatility (risk) and 1-year return. Each dashed Capital Allocation Line uses that stock's own industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Alphabet (GOOGL) and Microsoft (MSFT)
MetricGOOGLMSFT
Sharpe Ratio (1Y)2.04-0.26
Sortino Ratio (1Y)3.51-0.40

Profitability

ROE (TTM)

Both companies show strong equity returns, but Alphabet (GOOGL) at 48.68% is the standout with ROE above its industry range; Microsoft (MSFT) at 34.04% also sits in the top quartile.

GOOGL

Media & Entertainment industry group

48.68%

GOOGL
48.68%
Max
44.48%
Q3
15.26%
Median
6.57%
Q1
-4.94%
Min
-26.31%

MSFT

Software & Services industry group

34.04%

Max
62.27%
MSFT
34.04%
Q3
16.91%
Median
5.27%
Q1
-13.73%
Min
-54.87%
Loading chart…
Alphabet (GOOGL) vs. Microsoft (MSFT): A comparison of their ROE against their respective Media & Entertainment and Software & Services industry group benchmarks.

Net Margin (TTM)

Alphabet (GOOGL) at 54.77% keeps the most of each sales dollar — above its industry’s net margin range — and Microsoft (MSFT) at 40.31% also retains a top-quartile share.

GOOGL

Media & Entertainment industry group

54.77%

GOOGL
54.77%
Max
29.84%
Q3
10.13%
Median
3.96%
Q1
-3.20%
Min
-17.61%

MSFT

Software & Services industry group

40.31%

Max
41.99%
MSFT
40.31%
Q3
15.18%
Median
3.79%
Q1
-5.84%
Min
-30.39%
Loading chart…
Alphabet (GOOGL) vs. Microsoft (MSFT): A comparison of their net margin against their respective Media & Entertainment and Software & Services industry group benchmarks.

Operating Margin (TTM)

Both Alphabet (GOOGL) at 34.03% and Microsoft (MSFT) at 45.11% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

GOOGL

Media & Entertainment industry group

34.03%

Max
41.37%
GOOGL
34.03%
Q3
18.71%
Median
10.19%
Q1
0.00%
Min
-27.39%

MSFT

Software & Services industry group

45.11%

Max
47.12%
MSFT
45.11%
Q3
15.23%
Median
4.59%
Q1
-6.33%
Min
-32.77%
Loading chart…
Alphabet (GOOGL) vs. Microsoft (MSFT): A comparison of their operating margin against their respective Media & Entertainment and Software & Services industry group benchmarks.

Profitability Metrics

Profitability metrics for Alphabet (GOOGL) and Microsoft (MSFT)
MetricGOOGLMSFT
ROE (TTM)48.68%34.04%
ROA (TTM)12.96%14.09%
Net Margin (TTM)54.77%40.31%
Operating Margin (TTM)34.03%45.11%
Gross Margin (TTM)60.90%67.94%

Growth

Revenue Growth

Alphabet (GOOGL) at 15.09% sits in the top revenue growth quartile, while Microsoft (MSFT) at 17.79% is closer to the peer norm — faster top-line expansion for GOOGL.

Loading chart…
Alphabet (GOOGL) vs. Microsoft (MSFT): A comparison of their Revenue Growth across different time periods.

EPS Growth

Alphabet (GOOGL) at 34.45% sits in the top EPS growth quartile, while Microsoft (MSFT) at 31.60% is closer to the peer norm — faster per-share earnings growth for GOOGL.

Loading chart…
Alphabet (GOOGL) vs. Microsoft (MSFT): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Alphabet (GOOGL) and Microsoft (MSFT)
MetricGOOGLMSFT
Revenue Growth (YoY)15.09%17.79%
Revenue Growth (3Y CAGR)12.51%16.12%
EPS Growth (YoY)34.45%31.60%
EPS Growth (3Y CAGR)33.34%22.86%

Financial Strength

Current Ratio (MRQ)

Microsoft (MSFT) at 1.23 keeps current ratio within its industry’s typical mid-range, while Alphabet (GOOGL) at 2.72 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

GOOGL

Media & Entertainment industry group

2.72

Max
4.50
GOOGL
2.72
Q3
2.38
Median
1.45
Q1
0.88
Min
0.09

MSFT

Software & Services industry group

1.23

Max
5.39
Q3
2.79
Median
1.63
MSFT
1.23
Q1
1.03
Min
0.03
Loading chart…
Alphabet (GOOGL) vs. Microsoft (MSFT): A comparison of their current ratio against their respective Media & Entertainment and Software & Services industry group benchmarks.

Debt / Equity (MRQ)

Both Alphabet (GOOGL) at 0.19 and Microsoft (MSFT) at 0.29 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

GOOGL

Media & Entertainment industry group

0.19

Max
2.66
Q3
1.25
Median
0.46
GOOGL
0.19
Q1
0.17
Min
0.00

MSFT

Software & Services industry group

0.29

Max
2.42
Q3
1.07
Median
0.33
MSFT
0.29
Q1
0.06
Min
0.00
Loading chart…
Alphabet (GOOGL) vs. Microsoft (MSFT): A comparison of their debt-to-equity ratio against their respective Media & Entertainment and Software & Services industry group benchmarks.

Financial Strength Metrics

Financial strength metrics for Alphabet (GOOGL) and Microsoft (MSFT)
MetricGOOGLMSFT
Current Ratio (MRQ)2.721.23
Debt / Equity (MRQ)0.190.29
Net Debt / EBITDA-0.700.27

Dividends

Dividend Yield (TTM)

Alphabet (GOOGL) at 0.25% pays an industry-typical yield; Microsoft (MSFT) at 0.73% is above its entire peer range — the higher number, but one that calls for a look at payout sustainability before treating it as an advantage.

GOOGL

Media & Entertainment industry group

0.25%

Max
1.43%
Q3
0.59%
GOOGL
0.25%
Median
0.00%
Q1
0.00%
Min
0.00%

MSFT

Software & Services industry group

0.73%

MSFT
0.73%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Loading chart…
Alphabet (GOOGL) vs. Microsoft (MSFT): A comparison of their dividend yield against their respective Media & Entertainment and Software & Services industry group benchmarks.

Dividend Payout Ratio (TTM)

Alphabet (GOOGL) at 4.26% keeps its payout in the industry’s typical band, while Microsoft (MSFT) at 19.83% pays out more than any of its peers — the most stretched cover in its group.

GOOGL

Media & Entertainment industry group

4.26%

Max
34.19%
Q3
14.58%
GOOGL
4.26%
Median
0.00%
Q1
0.00%
Min
0.00%

MSFT

Software & Services industry group

19.83%

MSFT
19.83%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Loading chart…
Alphabet (GOOGL) vs. Microsoft (MSFT): A comparison of their payout ratio against their respective Media & Entertainment and Software & Services industry group benchmarks.

Dividend Metrics

Dividend metrics for Alphabet (GOOGL) and Microsoft (MSFT)
MetricGOOGLMSFT
Dividend Yield (TTM)0.25%0.73%
Dividend Payout Ratio (TTM)4.26%19.83%

Valuation

P/E Ratio (TTM)

Both Alphabet (GOOGL) at 17.36 and Microsoft (MSFT) at 27.71 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

GOOGL

Media & Entertainment industry group

17.36

Max
72.44
Q3
41.27
Median
20.06
GOOGL
17.36
Q1
11.51
Min
1.79

MSFT

Software & Services industry group

27.71

Max
107.17
Q3
61.33
Median
34.31
MSFT
27.71
Q1
16.59
Min
0.39
Loading chart…
Alphabet (GOOGL) vs. Microsoft (MSFT): A comparison of their P/E ratio against their respective Media & Entertainment and Software & Services industry group benchmarks.

P/S Ratio (TTM)

Both look expensive on sales: Microsoft (MSFT) at 11.09 sits in the upper P/S ratio quartile, and Alphabet (GOOGL) at 9.49 prices even higher, above its industry range.

GOOGL

Media & Entertainment industry group

9.49

GOOGL
9.49
Max
7.19
Q3
3.73
Median
1.52
Q1
0.63
Min
0.00

MSFT

Software & Services industry group

11.09

Max
21.27
MSFT
11.09
Q3
10.17
Median
4.61
Q1
2.41
Min
0.02
Loading chart…
Alphabet (GOOGL) vs. Microsoft (MSFT): A comparison of their P/S ratio against their respective Media & Entertainment and Software & Services industry group benchmarks.

P/B Ratio (MRQ)

Microsoft (MSFT) at 8.32 is valued about in line with its industry on P/B ratio, while Alphabet (GOOGL) at 6.80 carries an above-peer premium to book — GOOGL is pricier on assets.

GOOGL

Media & Entertainment industry group

6.80

Max
13.11
GOOGL
6.80
Q3
5.79
Median
2.13
Q1
0.83
Min
-4.58

MSFT

Software & Services industry group

8.32

Max
21.34
Q3
9.85
MSFT
8.32
Median
4.58
Q1
2.15
Min
-8.85
Loading chart…
Alphabet (GOOGL) vs. Microsoft (MSFT): A comparison of their P/B ratio against their respective Media & Entertainment and Software & Services industry group benchmarks.

Valuation Metrics

Valuation metrics for Alphabet (GOOGL) and Microsoft (MSFT)
MetricGOOGLMSFT
P/E Ratio (TTM)17.3627.71
P/S Ratio (TTM)9.4911.09
P/B Ratio (MRQ)6.808.32
Free Cash Flow Yield (TTM)0.54%0.45%