Alphabet vs Microsoft (GOOGL vs MSFT)
Alphabet (GOOGL) vs Microsoft (MSFT) in plain English: P/E, growth, margins, debt and dividend side by side, key differences and which fits each investor profile.
Alphabet (GOOGL) and Microsoft (MSFT) are companies from different sectors (internet, media and entertainment and software and cloud) that many people compare. Here are Alphabet and Microsoft side by side with their real figures as of November 4, 2026: what sets them apart, which fits each kind of investor and the most common questions, without telling you whether to buy Alphabet or Microsoft.
Alphabet vs Microsoft: the figures
| Figure | Alphabet | Microsoft |
|---|---|---|
| Share price | $288.93 (November 4, 2026) | $555.80 (November 4, 2026) |
| Market cap | $3.55 trillion | $4.13 trillion |
| P/E (TTM) | 15.1x | 29.0x |
| Forward P/E | 18.6x | 23.0x |
| Revenue growth (quarter) | +24.7% | +18.8% |
| Net margin (TTM) | 50.0% | 41.2% |
| Net debt / EBITDA | Net cash | 0.3x |
| Dividend yield | 0.31% | 0.75% |
| Beta | 1.23 | 1.04 |
Alphabet and Microsoft figures from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026; N/A means that Alphabet or Microsoft figure is not available, and we never estimate it.
3 key differences between Alphabet and Microsoft
- Valuation: Microsoft trades at 29.0x its annual earnings and Alphabet at 15.1x; the market pays more for each dollar of Microsoft profit, usually because it expects more growth.
- Profitability: for every 100 of sales, Alphabet keeps 50.0 as net profit and Microsoft keeps 41.2.
- Growth: Alphabet grew sales +24.7% year on year in its latest quarter, against +18.8% for Microsoft.
Alphabet or Microsoft: which fits your profile
- If you want growth: Alphabet is growing faster today, so it fits better with investors who put business growth first, usually accepting a higher P/E and a bumpier ride.
- If you want income (dividends): Microsoft pays the higher dividend relative to its price.
- If you prefer caution: Alphabet has less debt relative to its profit, which usually gives more room in a bad year.
- If price is what matters most to you: Alphabet trades on the lower P/E; check first whether that is an opportunity or a sign of a business that grows less.
Neither Alphabet nor Microsoft wins on everything, and owning both is also an option: spreading money across several companies or an index fund reduces what rides on each one.
How Alphabet and Microsoft make money
Alphabet (GOOGL)
Alphabet, Google's parent, makes most of its money from ads on Google Search, YouTube and partner sites, reported within Google Services, which also includes Google Play, subscriptions and Pixel devices. Google Cloud sells cloud infrastructure, Workspace and AI services, while Other Bets houses ventures such as Waymo. Full Alphabet analysis.
Microsoft (MSFT)
Microsoft reports three segments. Intelligent Cloud, the largest, includes the Azure cloud platform and server products. Productivity and Business Processes covers Office subscriptions, LinkedIn and Dynamics business software. More Personal Computing includes Windows licenses, Xbox consoles and games, Surface devices and Bing search advertising. Full Microsoft analysis.
Frequently asked questions: Alphabet vs Microsoft
Is Alphabet or Microsoft the better stock?
Choosing between Alphabet and Microsoft depends on what you are looking for. Alphabet is growing faster right now, and Alphabet trades on the lower P/E. Fintols does not tell you whether to buy Alphabet or Microsoft: it shows you the differences so you can decide.
Which pays a higher dividend, Alphabet or Microsoft?
As of November 4, 2026, Microsoft yields 0.75% and Alphabet yields 0.31%. Also check how much of their profit Alphabet and Microsoft pay out: if it is more than they earn, it cannot last.
Which is more expensive, Alphabet or Microsoft?
On P/E, Microsoft (29.0x) is more expensive than Alphabet (15.1x) as of November 4, 2026. A higher P/E can be justified if earnings grow faster, so compare it with each company's growth in the table.
Can I own both Alphabet and Microsoft?
Yes. Many people spread their money across several companies, such as Alphabet and Microsoft, or use index funds so they do not depend on just one. If you are starting out, decide how much you want to invest and for how long before buying Alphabet or Microsoft.
More comparisons with Alphabet or Microsoft
More companies like Alphabet and Microsoft: internet, media and entertainment stocks and software and cloud stocks. Educational content about Alphabet and Microsoft, not investment advice.