Alphabet (GOOGL) vs Microsoft (MSFT)
Head-to-head comparison of performance, valuation, growth, profitability and dividends. Prices delayed 15 minutes; data as of Oct 8, 2026.
Summary
Alphabet (GOOGL) has outperformed Microsoft (MSFT) over the past year, gaining 42.6% versus a gain of 1.1%. Over five years, GOOGL leads with a +147.9% price change compared with +74.1% for MSFT. Alphabet is the larger company by market cap ($4.30 trillion vs $3.94 trillion), about 1.1 times the size, while Microsoft is growing revenue faster (+17.8% vs +15.1%).
On valuation, Microsoft trades at a lower forward P/E (22.4x vs 23.4x for Alphabet). Microsoft offers the higher dividend yield (0.69% vs 0.24%). Microsoft converts more of its revenue into profit, with a net margin of 40.3% versus 32.8%.
Summary generated from market data by MetaCap's automated system. Methodology
Relative performance
Percent change in share price from the first common trading day shown; excludes dividends.
Head-to-head
| Metric | GOOGL | MSFT |
|---|---|---|
| Share price | $351.97 | $530.04 |
| Market cap | $4.30T | $3.94T |
| 1-day change | +0.42% | +0.05% |
| YTD return | +11.98% | +9.54% |
| 1-year return | +42.62% | +1.10% |
| 5-year return | +147.93% | +74.14% |
| P/E ratio (TTM) | 17.66 | 29.53 |
| Forward P/E | 23.35 | 22.39 |
| EPS (TTM) | $19.93 | $17.95 |
| Dividend yield | 0.24% | 0.69% |
| Annual dividend | $0.85 | $3.64 |
| Revenue (latest FY) | $402.84B | $331.84B |
| Revenue growth (YoY) | +15.09% | +17.79% |
| Net income (latest FY) | $132.17B | $133.75B |
| Gross margin | 59.65% | 67.94% |
| Operating margin | 32.03% | 46.78% |
| Net margin | 32.81% | 40.31% |
| 52-week high | $408.61 | $553.72 |
| 52-week low | $235.84 | $349.20 |
| Distance from 52-week high | -13.86% | -4.28% |
| Analyst consensus | strong_buy | strong_buy |
| Avg. price target upside | +22.02% | +10.87% |
| Average volume | 27.00M | 27.86M |
| Shares outstanding | 5.87B | 7.43B |
| Employees | 198,933 | 223,000 |
| Sector | Technology | Technology |
| Industry | Computer Software: Programming Data Processing | Computer Software: Prepackaged Software |
Highlighted cells mark the higher value for growth, returns, margins and yield, and the lower value for P/E ratios. Highlighting is a mechanical comparison, not a recommendation.
Key differences
- GOOGL has outperformed MSFT by 41.5 percentage points over the past year.
- Microsoft trades at a higher earnings multiple (29.5x vs 17.7x trailing P/E).
- Microsoft is more profitable, keeping 40.3 cents of every revenue dollar as net income versus 32.8 cents for Alphabet.
About Alphabet
GOOGL stock →Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America.
Technology · Computer Software: Programming Data Processing · 198,933 employees
About Microsoft
MSFT stock →Microsoft Corporation, a technology company, develops and supports a portfolio of technology solutions for individuals and businesses worldwide. Its products include operating systems, server applications, business solution applications, software development tools, desktop and server management tools, and video games; and devices, such as PCs, tablets, gaming and entertainment consoles, other intelligent devices, and related accessories.
Technology · Computer Software: Prepackaged Software · 223,000 employees
GOOGL vs MSFT FAQ
Which is bigger, Alphabet or Microsoft?
Alphabet (GOOGL) is larger, with a market capitalization of $4.30T compared with $3.94T for Microsoft (MSFT).
Which stock has performed better over the past year, GOOGL or MSFT?
GOOGL returned +42.62% over the past 12 months, compared with +1.10% for MSFT (price return, excluding dividends). Past performance does not predict future results.
Which has the lower P/E ratio, GOOGL or MSFT?
GOOGL has the lower trailing P/E at 17.7, versus 29.5 for MSFT. A lower P/E is not by itself a sign of a better investment; it can reflect slower expected growth or higher risk.
Which pays a higher dividend, Alphabet or Microsoft?
Microsoft has the higher yield at 0.69%, compared with 0.24% for Alphabet.
Are Alphabet and Microsoft in the same industry?
Both are in the Technology sector, but in different industries: Computer Software: Programming Data Processing for Alphabet and Computer Software: Prepackaged Software for Microsoft.