GOOGL 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 2026-09-25.
Alphabet Inc. · Communication Services
$342.36
+16.6% 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 |
GOOGL |
MSFT |
| Current Price |
$342.36 |
$497.12 |
| Fair Value Estimate |
$399.26 |
$702.35 |
| Upside to Fair Value |
+16.6%
|
+41.3%
|
| Market Cap |
$4,143.3B |
$3,691.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
12.9x
|
18.3x
|
| Price / Sales |
9.3x
|
11.1x
|
| Price / FCF |
78.1x
|
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 |
0.25% |
0.73% |
| FCF Yield |
1.28%
|
1.81%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Alphabet is the parent of Google Services (Search, YouTube, Android, Chrome, hardware, and the Play store), Google Cloud, and Other Bets, and it remains one of the highest-quality large-cap franchises in the market, with a TTM gross margin of 60.9%, TTM operating margin of 33.1%, TTM net margin of 54.8%, and a 50.8% return on equity. Revenue growth in the most recent quarter was 24.2% year over y…
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 |
GOOGL |
MSFT |
| Zone Low |
$299.44 |
$526.76 |
| Zone High |
$339.37 |
$597.00 |
| In Buy Zone? |
No
|
Yes
|