Software and IT services · 20/36 against 24/36 checks · to 2026-09-08

GOOGL vs META.

Alphabet (GOOGL) and Meta (META) are within reach of each other at $4.14T and $1.56T, and on the filings Meta passes more, 24 checks of 36 against 20.

Which passes more checks?

widest gap first

No axis separates them by more than 2 of six checks, and the widest is Quality. They score identically on 4 of the six, so the difference between them is narrower than a headline suggests.

ValueGrowthQualityHealthReturnsTrendGOOGL 20/36META 24/36
GOOGLMETA
Quality4/66/6
Trend analysis2/64/6
Value2/62/6
Growth5/65/6
Health5/65/6
Shareholder returns2/62/6
All checks20/3624/36

Alphabet turns over $445.9B to Meta's $228.2B, 2.0 times as much. Alphabet keeps 54.8% of revenue as profit against 29.8% at Meta.

Which keeps more of each sale?

Meta keeps more of each sale: gross margin of 81.7% against 60.9%, a gap of 21 points that flows into everything below it.

GOOGLMETA
Gross margin60.9%81.7%
Operating margin33.1%38.1%
Return on equity38.1%26.1%

Which is cheaper?

Alphabet is the cheaper of the two on earnings, 16.9x against 23.2x. Against their own histories, Alphabet is below its 20.3x median and Meta is above its 23.1x.

GOOGLMETA
Share price$338.36$613.48
Market cap$4.14T$1.56T
P/E16.9x23.2x
P/E, own median own 4-year median / own 11-year median20.3x23.1x
P/S9.3x6.8x
Free cash flow yield1.3%2.6%

Which is growing faster, GOOGL or META?

Meta grew revenue faster last year, +27.7% against +20.1% at Alphabet - 8 points apart. Over three years the order is reversed: Meta compounds at +19.9% against +12.5%.

GOOGLMETA
Revenue (TTM)$445.9B$228.2B
Revenue growth, 1 year+20.1%+27.7%
Revenue CAGR, 3 years+12.5%+19.9%
Net income (TTM)$244.2B$68.1B
Free cash flow (TTM)$53.3B$41.0B

Which balance sheet is stronger?

Alphabet carries much the lighter balance sheet, 0.16x of debt to equity against 0.32x - which matters most in the year a downturn arrives, not this one.

GOOGLMETA
Debt / equity0.16x0.32x
Interest coverage65.6x45.3x
Cash and short-term investments$242.5B$90.3B

Which hands more back to owners?

Both pay: Meta yields the more at 0.3% against 0.2%. A yield rises when a price falls, so read it beside the payout checks in each report.

GOOGLMETA
Dividend yield0.2%0.3%
Payout ratio4.1%7.8%
Years of unbroken dividend--

Where they differ most

the checks behind the gap

Quality: Meta 2 ahead

  • Better gross margins than peers 81.7% vs 74.4% (sector 70th pct, n=245)
  • Runs leaner than peers (operating margin) 38.1% vs 11.0% (sector 70th pct, n=398)
  • Actually profitable TTM net income $68.1B
  • Better gross margins than peers 60.9% vs 74.4% (sector 70th pct, n=245)
  • Profits are cash, not accounting 0.76 vs 0.80

Trend analysis: Meta 2 ahead

  • Price above the Kumo cloud $613.48 against a cloud top of $605.29
  • Price above the Tenkan and the Kijun $613.48 against the Tenkan (9 sessions) at $590.45 and the Kijun (26) at $581.04
  • Tenkan above the Kijun Tenkan $590.45 above the Kijun $581.04, 4 sessions since they crossed
  • Price above the Kumo cloud $338.36, below the cloud bottom of $340.69
  • Price above the Tenkan and the Kijun $338.36 against the Tenkan (9 sessions) at $340.76 and the Kijun (26) at $358.42
  • Tenkan above the Kijun Tenkan $340.76 below the Kijun $358.42, 14 sessions since they crossed