Software and IT services · 20/36 against 25/36 checks · to 2026-09-08
GOOGL vs MSFT.
AlphabetRuns Google search, YouTube and Android, funded by advertising, plus the Google Cloud business.
MicrosoftSells Windows, Office and Azure cloud computing to businesses and consumers.→Alphabet (GOOGL) and Microsoft (MSFT) are within reach of each other at $4.14T and $3.67T, and on the filings Microsoft passes more, 25 checks of 36 against 20.
Which passes more checks?
widest gap first→The two are furthest apart on Shareholder returns, where Microsoft passes 3 more of the six.
| GOOGL | MSFT | |
|---|---|---|
| Shareholder returns | 2/6 | 5/6 |
| Trend analysis | 2/6 | 4/6 |
| Value | 2/6 | 1/6 |
| Quality | 4/6 | 5/6 |
| Growth | 5/6 | 5/6 |
| Health | 5/6 | 5/6 |
| All checks | 20/36 | 25/36 |
→Alphabet turns over $445.9B to Microsoft's $331.8B, 1.3 times as much. Alphabet keeps 54.8% of revenue as profit against 40.3% at Microsoft.
Which hands more back to owners?
→Both pay: Microsoft yields the more at 0.7% against 0.2%. A yield rises when a price falls, so read it beside the payout checks in each report.
| GOOGL | MSFT | |
|---|---|---|
| Dividend yield | 0.2% | 0.7% |
| Payout ratio | 4.1% | 19.8% |
| Years of unbroken dividend | - | - |
Which is cheaper?
→Alphabet is the cheaper of the two on earnings, 16.9x against 27.5x. Against their own histories, Alphabet is below its 20.3x median and Microsoft is above its 26.9x.
| GOOGL | MSFT | |
|---|---|---|
| Share price | $338.36 | $493.95 |
| Market cap | $4.14T | $3.67T |
| P/E | 16.9x | 27.5x |
| P/E, own median own 4-year median / own 11-year median | 20.3x | 26.9x |
| P/S | 9.3x | 11.1x |
| Free cash flow yield | 1.3% | 1.8% |
Which keeps more of each sale?
→Microsoft keeps more of each sale: gross margin of 67.9% against 60.9%, a gap of 7 points that flows into everything below it.
| GOOGL | MSFT | |
|---|---|---|
| Gross margin | 60.9% | 67.9% |
| Operating margin | 33.1% | 46.8% |
| Return on equity | 38.1% | 30.2% |
Which is growing faster, GOOGL or MSFT?
→Alphabet grew revenue faster last year, +20.1% against +17.8% at Microsoft - 2 points apart. Over three years the order is reversed: Microsoft compounds at +16.1% against +12.5%.
| GOOGL | MSFT | |
|---|---|---|
| Revenue (TTM) | $445.9B | $331.8B |
| Revenue growth, 1 year | +20.1% | +17.8% |
| Revenue CAGR, 3 years | +12.5% | +16.1% |
| Net income (TTM) | $244.2B | $133.7B |
| Free cash flow (TTM) | $53.3B | $67.0B |
Which balance sheet is stronger?
→Both lean on debt to a similar degree, 0.16x to equity at Alphabet and 0.09x at Microsoft.
| GOOGL | MSFT | |
|---|---|---|
| Debt / equity | 0.16x | 0.09x |
| Interest coverage | 65.6x | 50.9x |
| Cash and short-term investments | $242.5B | $76.8B |
Where they differ most
the checks behind the gapShareholder returns: Microsoft 3 ahead
- Share count isn't climbing shares down 0.3% over 3 years
- Buybacks outpace the stock issued to staff $22.3B bought back vs $12.4B of stock compensation
- What it hands back fits inside its cash flow 72.7% vs 100.0%
- Buybacks outpace the stock issued to staff $17.4B bought back vs $28.2B of stock compensation
- Meaningful yield to owners (dividends and buybacks) $27.6B returned, 0.7% of market value
- Reliable payer, never cut paid 3/10 years, worst year-on-year change 36.5%
Trend analysis: Microsoft 2 ahead
- Price above the Kumo cloud $493.95 against a cloud top of $414.29
- Tenkan above the Kijun Tenkan $502.55 above the Kijun $495.94, 39 sessions since they crossed
- The Senkou cloud ahead is rising the Senkou spans already drawn for the next 26 sessions are rising
- 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