GOOG vs MSFT: Which Is the Better Buy?
Side-by-side comparison of Alphabet Inc. and Microsoft Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-24.
Alphabet Inc. · Communication Services
$334.98
+15.8% upside to fair value
Med Conviction
Grade B
High Quality
VS
Microsoft Corporation · Technology
$497.12
+41.3% upside to fair value
High Conviction
Grade A
High Quality
QuantHub Verdict
MSFT has more upside to fair value
(+41.3%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
GOOG |
MSFT |
| Current Price |
$334.98 |
$497.12 |
| Fair Value Estimate |
$387.82 |
$702.35 |
| Upside to Fair Value |
+15.8%
|
+41.3%
|
| Market Cap |
$4,065.3B |
$3,691.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
12.7x
|
18.3x
|
| Price / Sales |
9.1x
|
11.1x
|
| Price / FCF |
76.4x
|
55.1x
|
| Revenue Growth YoY |
+24.2%
|
+17.7%
|
| Gross Margin |
60.9%
|
67.9%
|
| Operating Margin |
33.1%
|
46.8%
|
| Return on Equity |
50.8%
|
33.2%
|
| Dividend Yield |
0.26% |
0.73% |
| FCF Yield |
1.31%
|
1.81%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Alphabet Inc. is the parent of Google Services, Google Cloud, and Other Bets, monetizing Search, YouTube, Android, Chrome, Google Play, Workspace, and enterprise cloud and AI infrastructure across the globe with roughly 190,820 full-time employees. The business quality is high: trailing-twelve-month gross margin is 60.9%, operating margin is 33.1%, net margin is 54.8%, and return on equity is 50.…
Microsoft is a global infrastructure-software platform spanning Azure, Microsoft 365, security, Dynamics, Windows, GitHub and AI copilots, with high business quality supported by enterprise distribution, explicitly cited switching costs, a $678 billion commercial RPO balance, 67.9% TTM gross margin, 46.8% TTM operating margin, 40.3% TTM net margin and 33.2% ROE. Revenue grew 17.7% and earnings gr…
Accumulation Zones
| Metric |
GOOG |
MSFT |
| Zone Low |
$290.87 |
$526.76 |
| Zone High |
$329.65 |
$597.00 |
| In Buy Zone? |
No
|
Yes
|