Alphabet Inc. (GOOGL) vs Meta Platforms, Inc. (META)

Alphabet Inc. and Meta Platforms, Inc. are both Internet Content & Information companies. Alphabet Inc. is the larger, with a market value of $3.45T against $1.55T — 2.2× the size. Alphabet Inc. trades at the lower P/E: 14.6× against 20.4×. Meta Platforms, Inc. grew revenue faster over the last twelve months: 27.5% against 22.2%. Alphabet Inc. has the higher net margin (50.0% vs 31.2%) and the lower return on invested capital (18.3% vs 18.3%). Both pay a dividend; Meta Platforms, Inc. yields more (0.35% vs 0.30%). Across the 23 metrics below, Alphabet Inc. leads on 12 and Meta Platforms, Inc. on 11.

Valuation

Metric GOOGL META Internet Content & Information median
P/E 14.61 20.41 12.38
P/S 7.37 6.40 0.93
P/B 5.27 5.67 1.24
Price to free cash flow 175.85 53.95 10.76
EV/EBITDA 18.02 14.80 10.74
EV/Sales 7.07 6.39 1.20
Earnings yield 6.84% 4.90% (1.71%)
Free cash flow yield 0.57% 1.85% 4.26%

Profitability

Metric GOOGL META Internet Content & Information median
Gross margin 60.86% 81.03% 63.25%
Operating margin 33.32% 32.86% (1.87%)
Net margin 49.95% 31.15% (1.37%)
Free cash flow margin 4.19% 11.86% 3.47%
Return on equity 44.98% 32.26% (1.19%)
Return on assets 30.56% 19.23% 0.00%
Return on invested capital 18.25% 18.32% 0.00%

Growth

Metric GOOGL META Internet Content & Information median
Revenue growth (TTM) 22.21% 27.53% 6.92%
EPS growth (last fiscal year) 34.45% (1.55%) 34.37%
Revenue growth, 5-year CAGR 17.15% 18.51% 10.46%
Net income growth, 5-year CAGR 26.83% 15.71% 0.00%

Health

Metric GOOGL META Internet Content & Information median
Debt to equity 0.18 0.30 0.01
Current ratio 2.79 1.90 1.84
Net debt to EBITDA (0.53) (0.22) (0.53)

Dividend

Metric GOOGL META Internet Content & Information median
Dividend yield 0.30% 0.35% 1.19%
Payout ratio 0.04 0.07 0.27

Size

Metric GOOGL META Internet Content & Information median
Market cap 3.45t 1.55t 693.23m

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