Alphabet Inc Class A (GOOGL)vsMicrosoft Corporation (MSFT)
GOOGL
Alphabet Inc Class A
$400.80
+0.71%
COMMUNICATION SERVICES · Cap: $4.82T
MSFT
Microsoft Corporation
$415.12
-1.34%
TECHNOLOGY · Cap: $3.13T
Smart Verdict
WallStSmart Research — data-driven comparison
Alphabet Inc Class A generates 33% more annual revenue ($422.50B vs $318.27B). MSFT leads profitability with a 39.3% profit margin vs 37.9%. MSFT appears more attractively valued with a PEG of 1.28. GOOGL earns a higher WallStSmart Score of 74/100 (B).
GOOGL
Strong Buy74
out of 100
Grade: B
MSFT
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+38.7%
Fair Value
$649.51
Current Price
$400.80
$248.71 discount
Margin of Safety
-75.3%
Fair Value
$240.06
Current Price
$415.12
$175.06 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 39 in profit
Keeps 38 of every $100 in revenue as profit
Strong operational efficiency at 36.1%
Earnings expanding 82.0% YoY
Generating 10.1B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 34 in profit
Keeps 39 of every $100 in revenue as profit
Strong operational efficiency at 46.3%
Generating 15.8B in free cash flow
18.3% revenue growth
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 11.7x book value
Moderate valuation
Comparative Analysis Report
WallStSmart ResearchBull Case : GOOGL
The strongest argument for GOOGL centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 37.9% and operating margin at 36.1%. Revenue growth of 21.8% demonstrates continued momentum.
Bull Case : MSFT
The strongest argument for MSFT centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 39.3% and operating margin at 46.3%. Revenue growth of 18.3% demonstrates continued momentum.
Bear Case : GOOGL
The primary concerns for GOOGL are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : MSFT
The primary concerns for MSFT are P/E Ratio.
Key Dynamics to Monitor
GOOGL carries more volatility with a beta of 1.27 — expect wider price swings.
GOOGL is growing revenue faster at 21.8% — sustainability is the question.
MSFT generates stronger free cash flow (15.8B), providing more financial flexibility.
Monitor INTERNET CONTENT & INFORMATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GOOGL scores higher overall (74/100 vs 72/100), backed by strong 37.9% margins and 21.8% revenue growth. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Alphabet Inc Class A
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.
Visit Website →Microsoft Corporation
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Microsoft Corporation is an American multinational technology company which produces computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue; it was the world's largest software maker by revenue as of 2016. It is considered one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Amazon, and Facebook.
Visit Website →Compare with Other INTERNET CONTENT & INFORMATION Stocks
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