ALPHABET INC. vs MICROSOFT CORPORATION, two Software stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
The split here is an old one, range against margin. Microsoft runs the fatter income statement, a 46% operating margin and 36% net to Alphabet's 36% and 27%, and it is also the cheaper stock, near 26 times earnings to Alphabet's 39. Microsoft also earns a higher return on equity, about 28% to Alphabet's 24%, and neither is leaning on debt to get there, with debt-to-equity of 0.12 and 0.17. The price frames a choice between Microsoft's enterprise and cloud spread at the lower multiple, or Alphabet's search business at the premium the market currently attaches to its momentum.
Comparison updated 2026-06-15.
| Metric | GOOGL | MSFT |
|---|---|---|
| Price | $357.17 | $385.09 |
| Market cap | $4.37T | $2.87T |
| Sector | Software | Software |
| Stage | Mature | Mature |
| Implied growth (priced in) | — | +15.0% |
| P/E | 27.2 | 22.9 |
| P/B | 9.13 | 6.92 |
| P/S | 10.35 | 9.01 |
| EV/EBITDA | 29.9 | 15.8 |
| Revenue growth | +17.4% | +17.9% |
| Gross margin | — | 67.6% |
| Operating margin | 36.1% | 46.3% |
| Net margin | 27.1% | 36.0% |
| Return on equity | 23.9% | 27.6% |
| Return on assets | 16.3% | 16.5% |
| Return on invested capital | 20.0% | 26.0% |
| FCF yield | 1.5% | 2.5% |
| Dividend yield | 0.2% | 0.9% |
| Debt / equity | 0.17 | 0.12 |
| Current ratio | 1.92 | 1.28 |
| Altman Z (solvency) | 7.72 | 7.32 |
| Piotroski F (quality) | 4 / 9 | 5 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.