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Alphabet (GOOGL) vs. Microsoft (MSFT)

This page compares Alphabet (GOOGL) with Microsoft (MSFT) using historical performance, profitability, financial strength, growth, dividend, and valuation metrics.

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.

SymbolGOOGLMSFT
Company 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 Capitalization4,696.67 billion USD3,100.78 billion USD
CurrencyUSDUSD
ExchangeNasdaqGSNasdaqGS
Listing DateAugust 19, 2004March 13, 1986
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolGOOGLMSFT
5-Day Price Return-3.72%3.01%
13-Week Price Return28.36%5.18%
26-Week Price Return33.07%-17.94%
52-Week Price Return132.77%-9.03%
Month-to-Date Return0.74%2.36%
Year-to-Date Return23.85%-13.69%
10-Day Avg. Volume26.99M34.60M
3-Month Avg. Volume31.73M36.22M
3-Month Volatility34.58%27.14%
Beta1.271.09

Profitability

Return on Equity (TTM)

Both Alphabet (GOOGL) at 38.98% and Microsoft (MSFT) at 33.13% rank in the top quartile for Return on Equity (TTM) among industry peers, indicating strong returns on shareholders’ equity.

GOOGL

Media & Entertainment industry group

38.98%

Max
53.39%
Q3
18.85%
Median
7.25%
Q1
-4.25%
Min
-34.48%

MSFT

Software & Services industry group

33.13%

Max
62.31%
Q3
20.29%
Median
7.31%
Q1
-8.50%
Min
-50.67%
Alphabet (GOOGL) vs. Microsoft (MSFT): A comparison of their Return on Equity (TTM) against their respective Media & Entertainment and Software & Services industry group benchmarks.

Net Profit Margin (TTM)

Alphabet (GOOGL) leads with Net Profit Margin (TTM) of 37.92%, above its industry benchmark range, while Microsoft (MSFT) at 39.34% also ranks strongly in the top quartile.

GOOGL

Media & Entertainment industry group

37.92%

Max
33.60%
Q3
12.38%
Median
5.66%
Q1
-1.87%
Min
-21.01%

MSFT

Software & Services industry group

39.34%

Max
44.20%
Q3
16.48%
Median
8.18%
Q1
-3.67%
Min
-28.43%
Alphabet (GOOGL) vs. Microsoft (MSFT): A comparison of their Net Profit Margin (TTM) against their respective Media & Entertainment and Software & Services industry group benchmarks.

Operating Profit Margin (TTM)

Both Alphabet (GOOGL) at 32.69% and Microsoft (MSFT) at 46.75% rank in the top quartile for Operating Profit Margin (TTM) among industry peers, indicating both companies convert revenue into operating income more strongly than typical competitors.

GOOGL

Media & Entertainment industry group

32.69%

Max
32.69%
Q3
15.15%
Median
8.94%
Q1
1.27%
Min
-16.27%

MSFT

Software & Services industry group

46.75%

Max
46.75%
Q3
17.04%
Median
6.53%
Q1
-4.60%
Min
-34.31%
Alphabet (GOOGL) vs. Microsoft (MSFT): A comparison of their Operating Profit Margin (TTM) against their respective Media & Entertainment and Software & Services industry group benchmarks.

Profitability at a Glance

SymbolGOOGLMSFT
Return on Equity (TTM)38.98%33.13%
Return on Assets (TTM)27.41%19.15%
Net Profit Margin (TTM)37.92%39.34%
Operating Profit Margin (TTM)32.69%46.75%
Gross Profit Margin (TTM)60.37%68.31%

Financial Strength

Current Ratio (MRQ)

Both Alphabet (GOOGL) at 1.92 and Microsoft (MSFT) at 1.28 carry Current Ratio (MRQ) within their industry mid-ranges, suggesting balanced short-term liquidity relative to peers.

GOOGL

Media & Entertainment industry group

1.92

Max
3.45
Q3
1.93
Median
1.41
Q1
0.89
Min
0.32

MSFT

Software & Services industry group

1.28

Max
4.52
Q3
2.50
Median
1.64
Q1
1.13
Min
0.31
Alphabet (GOOGL) vs. Microsoft (MSFT): A comparison of their Current Ratio (MRQ) against their respective Media & Entertainment and Software & Services industry group benchmarks.

Debt-to-Equity Ratio (MRQ)

Both Alphabet (GOOGL) at 0.16 and Microsoft (MSFT) at 0.25 post Debt-to-Equity Ratio (MRQ) near their industry mid-ranges, so neither company stands out strongly from peers on leverage.

GOOGL

Media & Entertainment industry group

0.16

Max
3.56
Q3
1.56
Median
0.59
Q1
0.08
Min
0.00

MSFT

Software & Services industry group

0.25

Max
2.69
Q3
1.27
Median
0.38
Q1
0.00
Min
0.00
Alphabet (GOOGL) vs. Microsoft (MSFT): A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Media & Entertainment and Software & Services industry group benchmarks.

Interest Coverage Ratio (TTM)

Both Alphabet (GOOGL) at 16.20 and Microsoft (MSFT) at 891.80 post Interest Coverage Ratio (TTM) above their industry benchmark ranges, indicating wide cushions to cover interest expense from operating income or EBIT.

GOOGL

Media & Entertainment industry group

16.20

Max
15.94
Q3
6.46
Median
2.12
Q1
0.10
Min
-7.25

MSFT

Software & Services industry group

891.80

Max
45.58
Q3
11.44
Median
-0.40
Q1
-13.69
Min
-51.04
Alphabet (GOOGL) vs. Microsoft (MSFT): A comparison of their Interest Coverage Ratio (TTM) against their respective Media & Entertainment and Software & Services industry group benchmarks.

Financial Strength at a Glance

SymbolGOOGLMSFT
Current Ratio (MRQ)1.921.28
Quick Ratio (MRQ)1.921.27
Debt-to-Equity Ratio (MRQ)0.160.25
Interest Coverage Ratio (TTM)16.20891.80

Growth

Revenue Growth

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

Revenue Growth at a Glance

SymbolGOOGLMSFT
Revenue Growth (MRQ vs Prior YoY)21.79%18.30%
Revenue Growth (TTM vs Prior YoY)17.45%17.87%
3-Year Revenue CAGR12.51%12.42%
5-Year Revenue CAGR17.15%14.52%

EPS Growth

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

EPS Growth at a Glance

SymbolGOOGLMSFT
EPS Growth (MRQ vs Prior YoY)81.96%23.32%
EPS Growth (TTM vs Prior YoY)48.51%29.75%
3-Year EPS CAGR33.35%12.24%
5-Year EPS CAGR29.82%18.80%

Dividend

Dividend Yield (TTM)

Both Alphabet (GOOGL) at 0.22% and Microsoft (MSFT) at 0.82% report Dividend Yield (TTM) near their industry mid-ranges, so neither company stands out strongly from peers on cash yield relative to share price.

GOOGL

Media & Entertainment industry group

0.22%

Max
2.40%
Q3
1.01%
Median
0.00%
Q1
0.00%
Min
0.00%

MSFT

Software & Services industry group

0.82%

Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Alphabet (GOOGL) vs. Microsoft (MSFT): A comparison of their Dividend Yield (TTM) against their respective Media & Entertainment and Software & Services industry group benchmarks.

Dividend Payout Ratio (TTM)

Alphabet (GOOGL) at 6.34% maintains Dividend Payout Ratio (TTM) around its industry median — a balanced dividend policy. Microsoft (MSFT) at 20.65% sits outside the typical mid-range, leaning toward more retention or more distribution than the industry median.

GOOGL

Media & Entertainment industry group

6.34%

Max
40.95%
Q3
16.81%
Median
0.00%
Q1
0.00%
Min
0.00%

MSFT

Software & Services industry group

20.65%

Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Alphabet (GOOGL) vs. Microsoft (MSFT): A comparison of their Dividend Payout Ratio (TTM) against their respective Media & Entertainment and Software & Services industry group benchmarks.

Dividend at a Glance

SymbolGOOGLMSFT
Dividend Yield (TTM)0.22%0.82%
Dividend Payout Ratio (TTM)6.34%20.65%

Valuation

Price-to-Earnings Ratio (TTM)

Both Alphabet (GOOGL) at 29.34 and Microsoft (MSFT) at 25.21 post Price-to-Earnings Ratio (TTM) near the typical industry midpoint — neither company stands out strongly from peers on trailing earnings multiple.

GOOGL

Media & Entertainment industry group

29.34

Max
73.24
Q3
40.37
Median
22.66
Q1
12.50
Min
1.01

MSFT

Software & Services industry group

25.21

Max
112.36
Q3
62.61
Median
31.31
Q1
14.45
Min
0.35
Alphabet (GOOGL) vs. Microsoft (MSFT): A comparison of their Price-to-Earnings Ratio (TTM) against their respective Media & Entertainment and Software & Services industry group benchmarks.

Price-to-Sales Ratio (TTM)

Microsoft (MSFT) at 9.92 sits in the higher-multiple quartile for Price-to-Sales Ratio (TTM), but Alphabet (GOOGL) at 11.12 is higher still, above its industry benchmark range — both carry elevated trailing revenue multiples relative to peers, with GOOGL higher.

GOOGL

Media & Entertainment industry group

11.12

Max
9.67
Q3
4.46
Median
1.77
Q1
0.80
Min
0.15

MSFT

Software & Services industry group

9.92

Max
17.16
Q3
8.26
Median
4.08
Q1
2.21
Min
0.12
Alphabet (GOOGL) vs. Microsoft (MSFT): A comparison of their Price-to-Sales Ratio (TTM) against their respective Media & Entertainment and Software & Services industry group benchmarks.

Price-to-Book Ratio (MRQ)

Microsoft (MSFT) at 6.63 carries typical industry Price-to-Book Ratio (MRQ), while Alphabet (GOOGL) at 7.26 sits in the higher-multiple quartile — GOOGL carries a higher book-value multiple relative to peers.

GOOGL

Media & Entertainment industry group

7.26

Max
10.00
Q3
4.71
Median
2.29
Q1
1.18
Min
0.20

MSFT

Software & Services industry group

6.63

Max
20.48
Q3
9.90
Median
4.69
Q1
2.39
Min
0.32
Alphabet (GOOGL) vs. Microsoft (MSFT): A comparison of their Price-to-Book Ratio (MRQ) against their respective Media & Entertainment and Software & Services industry group benchmarks.

Valuation at a Glance

SymbolGOOGLMSFT
Price-to-Earnings Ratio (TTM)29.3425.21
Price-to-Sales Ratio (TTM)11.129.92
Price-to-Book Ratio (MRQ)7.266.63
Price-to-Free Cash Flow Ratio (TTM)72.9543.29