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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 Corp.
Country/RegionUnited StatesUnited States
GICS SectorCommunication ServicesInformation Technology
GICS Industry GroupMedia & EntertainmentSoftware & Services
GICS IndustryInteractive Media & ServicesSoftware
GICS Sub-IndustryInteractive Media & ServicesSystems Software
Market Capitalization4,360.83 billion USD2,770.95 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateAugust 19, 2004March 13, 1986
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

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

Trailing Returns

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

Performance Metrics

Price performance metrics for Alphabet (GOOGL) and Microsoft (MSFT)
MetricGOOGLMSFT
Total Return (1Y)103.36%-24.41%

Risk Profile

Drawdown History

GOOGL
MSFT
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Alphabet (GOOGL) vs. Microsoft (MSFT): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk Metrics

Risk profile metrics for Alphabet (GOOGL) and Microsoft (MSFT)
MetricGOOGLMSFT
Volatility (1Y, Annualized)29.88%26.96%
Beta (5Y)1.251.13
Avg. Volume (3M)31.86M39.43M

Risk-Adjusted Performance

Risk-Return Positioning

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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.

Profitability

ROE (TTM)

Both Alphabet (GOOGL) at 38.89% and Microsoft (MSFT) at 34.01% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

GOOGL

Media & Entertainment industry group

38.89%

GOOGL
38.89%
Max
38.89%
Q3
15.20%
Median
6.34%
Q1
-4.34%
Min
-29.59%

MSFT

Software & Services industry group

34.01%

Max
53.38%
MSFT
34.01%
Q3
16.53%
Median
5.38%
Q1
-13.43%
Min
-55.27%
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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 37.92% keeps the most of each sales dollar — above its industry’s net margin range — and Microsoft (MSFT) at 39.34% also retains a top-quartile share.

GOOGL

Media & Entertainment industry group

37.92%

GOOGL
37.92%
Max
30.77%
Q3
10.56%
Median
3.30%
Q1
-3.48%
Min
-24.17%

MSFT

Software & Services industry group

39.34%

Max
44.20%
MSFT
39.34%
Q3
14.93%
Median
3.32%
Q1
-5.99%
Min
-34.99%
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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 36.12% and Microsoft (MSFT) at 46.33% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

GOOGL

Media & Entertainment industry group

36.12%

Max
41.37%
GOOGL
36.12%
Q3
17.31%
Median
7.79%
Q1
-3.29%
Min
-27.39%

MSFT

Software & Services industry group

46.33%

Max
60.45%
MSFT
46.33%
Q3
16.49%
Median
4.46%
Q1
-12.92%
Min
-53.94%
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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)38.89%34.01%
ROA (TTM)14.64%14.81%
Net Margin (TTM)37.92%39.34%
Operating Margin (TTM)36.12%46.33%
Gross Margin (TTM)60.37%68.31%

Growth

Revenue Growth

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

Revenue Growth Metrics

Revenue growth metrics for Alphabet (GOOGL) and Microsoft (MSFT)
MetricGOOGLMSFT
Revenue Growth (YoY)15.09%14.93%
Revenue Growth (3Y CAGR)12.51%12.42%

EPS Growth

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

EPS Growth Metrics

EPS growth metrics for Alphabet (GOOGL) and Microsoft (MSFT)
MetricGOOGLMSFT
EPS Growth (YoY)34.45%15.59%
EPS Growth (3Y CAGR)33.34%12.23%

Financial Strength

Current Ratio (MRQ)

Both Alphabet (GOOGL) at 1.92 and Microsoft (MSFT) at 1.28 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

GOOGL

Media & Entertainment industry group

1.92

Max
4.37
Q3
2.32
GOOGL
1.92
Median
1.41
Q1
0.90
Min
0.31

MSFT

Software & Services industry group

1.28

Max
5.55
Q3
2.88
Median
1.72
MSFT
1.28
Q1
1.07
Min
0.03
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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 0.20 and Microsoft (MSFT) at 0.30 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

GOOGL

Media & Entertainment industry group

0.20

Max
2.46
Q3
1.30
Median
0.52
GOOGL
0.20
Q1
0.16
Min
0.00

MSFT

Software & Services industry group

0.30

Max
2.31
Q3
1.06
Median
0.32
MSFT
0.30
Q1
0.06
Min
0.00
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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)1.921.28
Debt / Equity (MRQ)0.200.30
Net Debt / EBITDA-0.190.26

Dividends

Dividend Yield (TTM)

Alphabet (GOOGL) at 0.24% pays an industry-typical yield; Microsoft (MSFT) at 0.97% 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

0.24%

Max
2.04%
Q3
1.04%
GOOGL
0.24%
Median
0.00%
Q1
0.00%
Min
0.00%

MSFT

Software & Services industry group

0.97%

MSFT
0.97%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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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 6.41% keeps its payout in the industry’s typical band, while Microsoft (MSFT) at 20.73% pays out more than any of its peers — the most stretched cover in its group.

GOOGL

Media & Entertainment industry group

6.41%

Max
45.76%
Q3
21.24%
GOOGL
6.41%
Median
0.00%
Q1
0.00%
Min
0.00%

MSFT

Software & Services industry group

20.73%

MSFT
20.73%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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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)0.24%0.97%
Dividend Payout Ratio (TTM)6.41%20.73%

Valuation

P/E Ratio (TTM)

Both Alphabet (GOOGL) at 27.24 and Microsoft (MSFT) at 22.19 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

27.24

Max
76.08
Q3
38.11
GOOGL
27.24
Median
21.79
Q1
11.83
Min
1.57

MSFT

Software & Services industry group

22.19

Max
126.50
Q3
60.82
Median
30.49
MSFT
22.19
Q1
16.22
Min
0.41
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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)

Microsoft (MSFT) at 8.71 prices around its industry’s typical P/S ratio, while Alphabet (GOOGL) at 10.32 clears its benchmark range — GOOGL looks notably rich on sales.

GOOGL

Media & Entertainment industry group

10.32

GOOGL
10.32
Max
7.60
Q3
3.81
Median
1.44
Q1
0.61
Min
0.00

MSFT

Software & Services industry group

8.71

Max
18.72
Q3
8.93
MSFT
8.71
Median
4.21
Q1
2.14
Min
0.02
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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 6.69 is valued about in line with its industry on P/B ratio, while Alphabet (GOOGL) at 9.04 carries an above-peer premium to book — GOOGL is pricier on assets.

GOOGL

Media & Entertainment industry group

9.04

Max
10.50
GOOGL
9.04
Q3
4.87
Median
1.80
Q1
0.81
Min
-3.65

MSFT

Software & Services industry group

6.69

Max
18.46
Q3
8.62
MSFT
6.69
Median
4.00
Q1
1.94
Min
-7.57
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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)27.2422.19
P/S Ratio (TTM)10.328.71
P/B Ratio (MRQ)9.046.69
Free Cash Flow Yield (TTM)0.64%1.34%