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.
| Quality | 4/6 | 6/6 |
| Trend analysis | 2/6 | 4/6 |
| Value | 2/6 | 2/6 |
| Growth | 5/6 | 5/6 |
| Health | 5/6 | 5/6 |
| Shareholder returns | 2/6 | 2/6 |
| All checks | 20/36 | 24/36 |
→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.
| Gross margin | 60.9% | 81.7% |
| Operating margin | 33.1% | 38.1% |
| Return on equity | 38.1% | 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.
| Share price | $338.36 | $613.48 |
| Market cap | $4.14T | $1.56T |
| P/E | 16.9x | 23.2x |
| P/E, own median own 4-year median / own 11-year median | 20.3x | 23.1x |
| P/S | 9.3x | 6.8x |
| Free cash flow yield | 1.3% | 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%.
| 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.
| Debt / equity | 0.16x | 0.32x |
| Interest coverage | 65.6x | 45.3x |
| 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.
| Dividend yield | 0.2% | 0.3% |
| Payout ratio | 4.1% | 7.8% |
| Years of unbroken dividend | - | - |
Where they differ most
the checks behind the gapQuality: 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