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 $4.25T against $1.88T — 2.3× the size. Alphabet Inc. trades at the lower P/E: 16.9× against 26.4×. Meta Platforms, Inc. grew revenue faster over the last twelve months: 27.7% against 20.1%. Alphabet Inc. has the higher net margin (54.8% vs 29.8%) and the lower return on invested capital (18.6% vs 21.3%). Both pay a dividend; Meta Platforms, Inc. yields more (0.30% vs 0.25%). Across the 23 metrics below, Meta Platforms, Inc. leads on 12 and Alphabet Inc. on 11.

Valuation

Metric GOOGL META Internet Content & Information median
P/E 16.91 26.37 11.54
P/S 9.28 7.90 0.86
P/B 6.65 6.91 1.20
Price to free cash flow 77.68 44.02 9.63
EV/EBITDA 23.11 16.39 8.68
EV/Sales 8.96 7.87 1.18
Earnings yield 5.91% 3.79% (2.42%)
Free cash flow yield 1.29% 2.27% 2.27%

Profitability

Metric GOOGL META Internet Content & Information median
Gross margin 60.90% 81.75% 66.84%
Operating margin 33.11% 38.08% (3.41%)
Net margin 54.75% 29.84% (3.02%)
Free cash flow margin 11.95% 17.95% 1.75%
Return on equity 49.55% 29.85% 0.00%
Return on assets 34.29% 18.29% (0.36%)
Return on invested capital 18.60% 21.34% 0.00%

Growth

Metric GOOGL META Internet Content & Information median
Revenue growth (TTM) 20.05% 27.65% 2.65%
EPS growth (last fiscal year) 34.45% (1.55%) 34.45%
Revenue growth, 5-year CAGR 17.15% 18.51% 9.73%
Net income growth, 5-year CAGR 26.83% 15.71% 0.00%

Health

Metric GOOGL META Internet Content & Information median
Debt to equity 0.15 0.32 0.01
Current ratio 2.72 2.23 1.82
Net debt to EBITDA (0.53) (0.22) (0.48)

Dividend

Metric GOOGL META Internet Content & Information median
Dividend yield 0.25% 0.30% 1.07%
Payout ratio 0.04 0.08 0.28

Size

Metric GOOGL META Internet Content & Information median
Market cap 4.25t 1.88t 318.52m

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