LIVE
MSFT
Microsoft Corporation · Technology
$416.67
+0.65% this month
VERSUS
⟷
COMPARE
GOOGL
Alphabet Inc. · Technology
$368.53
-7.41% this month
AI Score
59.9vs66.2
GOOGL ↑1Y Return
-10.18%vs+119.30%
GOOGL ↑Forward P/E
23.28xvs26.25x
MSFT ↑Target Upside
+24.52%vs+13.25%
MSFT ↑Scoreboard verdict
Across AI score, momentum, valuation, upside, operating margin
MSFT
3
GOOGL
2
Metrics last refreshed: 6/6/2026
Quick take
MSFT vs GOOGL: Microsoft vs Google — Which AI Giant Wins?: AI Score, Valuation, Performance and Upside
Microsoft and Alphabet are both AI infrastructure and cloud compounders, but Microsoft has more direct enterprise AI monetisation via Copilot and a deeper OpenAI relationship, while Alphabet has the dominant advertising franchise and underappreciated Google Cloud and Waymo assets. The tension is between Microsoft's cleaner AI monetisation story and Alphabet's lower valuation with more asset optionality.
Use this MSFT vs GOOGL comparison to decide which AI mega-cap fits your portfolio better. Microsoft offers a cleaner enterprise AI monetisation path; Alphabet offers a lower valuation with exposure to Search, Cloud, YouTube, and Waymo as a portfolio of high-value businesses.
Live analysis · updated 6/6/2026
MSFT holds the edge across 3 of 5 key metrics in this comparison. GOOGL has delivered stronger 1-year price return (+119.30% vs -10.18%), though MSFT trades at the lower forward P/E (23.28x vs 26.25x). On fundamentals, GOOGL is growing revenue faster (21.80%), while MSFT maintains the higher operating margin (46.33%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for MSFT (+24.52%) than for GOOGL (+13.25%).
Comparison scoreboard
MSFT LEADS 3/5AI Score
MSFT 59.9
GOOGL ✓66.2
1Y Return
MSFT -10.18%
GOOGL ✓+119.30%
Fwd P/E
MSFT ✓23.28
GOOGL 26.25
Target Up.
MSFT ✓+24.52%
GOOGL +13.25%
Op. Margin
MSFT ✓46.33%
GOOGL 36.12%
Normalized 1Y performance
MSFT
GOOGL
Recent returns
MSFT
GOOGL
Analyst price targets & sentiment
MSFT · 54 analysts
STRONG BUYHOLDSTRONG SELL
Strong Buy (1.3/5.0)
Price target range
analyst low$400.00
analyst high$870.00
analyst mean$560.63
current price$416.67
+24.5% upside to analyst mean
GOOGL · 52 analysts
STRONG BUYHOLDSTRONG SELL
Buy (1.6/5.0)
Price target range
analyst low$160.00
analyst mean$430.72
current price$368.53
+13.2% upside to analyst mean
Who should consider this stock?
MSFT may suit investors who:
- →Want direct enterprise AI monetisation via Copilot and Azure AI services
- →Prefer a cleaner cloud growth story with deep OpenAI partnership exposure
- →Value sticky B2B subscription revenue from Microsoft 365 and enterprise contracts
- →Are comfortable with a premium valuation for durable AI platform leadership
GOOGL may suit investors who:
- →See a relative valuation opportunity in a dominant advertising and cloud franchise
- →Believe Google Search will maintain revenue even as AI query behaviour evolves
- →Want optionality across Search, YouTube, Cloud, DeepMind, and Waymo
- →Are comfortable with regulatory risk in exchange for broader asset diversity
Performance & AI score
| Metric | MSFT | GOOGL |
|---|---|---|
| AI score | 59.9 | 66.2 |
| AI rank | #168 | #69 |
| Latest close | $416.67 | $368.53 |
| 1M return | +0.65% | -7.41% |
| 6M return | -13.35% | +16.03% |
| 1Y return | -10.18% | +119.30% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | MSFT | GOOGL |
|---|---|---|
| 1Y ago | $8.91K (-10.9%) started 2025-06-05 | $21.91K (+119.1%) started 2025-06-05 |
| 5Y ago | $17.55K (+75.5%) started 2021-06-07 | $30.98K (+209.8%) started 2021-06-07 |
| 10Y ago | $101.3K (+913.0%) started 2016-06-06 | $101.93K (+919.3%) started 2016-06-06 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | MSFT | GOOGL |
|---|---|---|
| Market cap | $3.34T | $4.61T |
| Trailing P/E | 26.82 | 28.99 |
| Forward P/E | 23.28 | 26.25 |
| Price/Sales | 11.87 | 5.88 |
| EV/Revenue | 10.66 | 10.83 |
| Analyst target | $560.63 | $430.72 |
| Target upside | +24.52% | +13.25% |
Growth, profitability & risk
| Metric | MSFT | GOOGL |
|---|---|---|
| Revenue growth | 18.30% | 21.80% |
| Earnings growth | 23.40% | 82.00% |
| EPS growth | +23.40% | +82.00% |
| FCF margin | +11.63% | +6.61% |
| Operating margin | 46.33% | 36.12% |
| Profit margin | 39.34% | 37.92% |
| ROIC proxy | 34.01% | 38.88% |
| Return on equity | 34.01% | 38.88% |
| Dividend yield | 0.81% | 0.23% |
| Beta | 1.09 | 1.27 |
| Debt/equity | 30.27 | 20.03 |
| Current ratio | 1.28 | 1.92 |
| Quick ratio | 1.14 | 1.71 |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
MSFT max drawdown34.18%
GOOGL max drawdown20.42%
MSFT max wkly drop14.43%
GOOGL max wkly drop9.46%
5Y risk snapshot
MSFT max drawdown37.15%
GOOGL max drawdown44.32%
MSFT max wkly drop14.43%
GOOGL max wkly drop13.41%
10Y risk snapshot
MSFT max drawdown37.15%
GOOGL max drawdown44.32%
MSFT max wkly drop16.36%
GOOGL max wkly drop15.46%
Performance metrics by period
| Period | Metric | MSFT | GOOGL |
|---|---|---|---|
| 1Y | Growth | -10.91% | +119.09% |
| CAGR | -10.92% | +119.33% | |
| Sharpe ratio | -0.51 | 2.68 | |
| Max drawdown | 34.18% | 20.42% | |
| Max daily drop | 9.99% | 3.86% | |
| Max wkly drop | 14.43% | 9.46% | |
| 5Y | Growth | +69.70% | +208.28% |
| CAGR | +11.17% | +25.28% | |
| Sharpe ratio | 0.36 | 0.73 | |
| Max drawdown | 37.15% | 44.32% | |
| Max daily drop | 9.99% | 9.51% | |
| Max wkly drop | 14.43% | 13.41% | |
| 10Y | Growth | +796.88% | +914.42% |
| CAGR | +24.54% | +26.08% | |
| Sharpe ratio | 0.78 | 0.79 | |
| Max drawdown | 37.15% | 44.32% | |
| Max daily drop | 14.74% | 11.63% | |
| Max wkly drop | 16.36% | 15.46% |
Business comparison
| Category | MSFT | GOOGL |
|---|---|---|
| Company | Microsoft Corporation | Alphabet Inc. |
| Sector | Technology | Communication Services |
| Industry | Software - Infrastructure | Internet Content & Information |
| Core business | Cloud infrastructure (Azure), productivity software (Microsoft 365), enterprise platforms, gaming (Xbox), and AI services via OpenAI partnership. Copilot AI integrated across all products. | Search and advertising (Google Search, YouTube), cloud infrastructure (Google Cloud), consumer hardware, autonomous vehicles (Waymo), and AI research (Google DeepMind, Gemini). |
| Investor focus | Azure growth rate and AI monetisation via Copilot, Microsoft 365 commercial seat expansion, OpenAI partnership ROI, and operating leverage. | Google Cloud growth and AI services revenue, Search revenue resilience amid AI query shifts, Gemini model competitiveness, YouTube monetisation, and Waymo commercialisation. |
MSFT strengths
- →Azure cloud growing at scale with AI workload acceleration
- →Deep enterprise distribution via Microsoft 365 creates a platform for Copilot AI monetisation
- →OpenAI partnership provides first-mover AI capability advantage across products
GOOGL strengths
- →Dominant Search and YouTube advertising franchise with extremely high margins
- →Google Cloud growing faster and approaching operating profitability
- →DeepMind and Gemini represent world-class AI research and model capabilities
Risks to watch — MSFT
- →Azure AI infrastructure spending and its margin impact
- →Copilot adoption and monetisation timeline
- →Enterprise IT budget sensitivity to economic slowdowns
Risks to watch — GOOGL
- →AI-native search disruption threatening Google's core revenue model
- →Regulatory and antitrust exposure in Search and advertising globally
- →Google Cloud monetisation of AI infrastructure still in early stages
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