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

Quick verdict

The cleanest line between these two at the 4 September 2026 close is the EV/EBITDA multiple: Meta trades at 15.1 times, Alphabet at 24.4 times. That gap matters because it is the one profitability-based valuation measure available for both — Alphabet's trailing net income of $244.2bn sits far above its $147.6bn of operating profit for the twelve months to June 2026, so the earnings sit atop large non-operating gains and its P/E, PEG, net margin and ROE have been withheld as uninterpretable. On the comparable measures Meta looks cheaper on every count: 6.9 times sales against 9.3, a 2.59% free-cash-flow yield against 1.28%. Our scoring hands Meta valuation, growth and quality, Alphabet the balance sheet, with income and momentum too close to separate — an overall 4-2 in Meta's favour, though Alphabet remains roughly three times the larger company.

At-a-glance comparison

Business model and revenue mix

Both sell attention, but the shape of the revenue differs. Meta runs Facebook, Instagram, WhatsApp and Messenger, taking almost all of its $228.2bn of trailing revenue to June 2026 from advertising, with Reality Labs hardware as a loss-absorbing side venture. Alphabet's $445.9bn over the same period comes chiefly from Google Search and YouTube advertising, but also carries Google Cloud, Android and a hardware business — a mix that shows up in the gross margin, 60.9% versus Meta's 81.75%. The extra cost of goods at Alphabet reflects infrastructure and device economics that a pure social-advertising model does not bear. Both are US-listed on Nasdaq in Communication Services, both report to a December year end, and both carry a high-quality style tag in our framework. Scale is the other divide: Alphabet's revenue base is roughly twice Meta's.

Valuation

Meta takes this factor. At $616.77 a share on 4 September 2026 it is capitalised at $1,582.6bn and trades on 23.2 times trailing earnings, 6.9 times sales, 6.1 times book and 15.1 times EV/EBITDA, with a PEG of 0.58 — a multiple that looks modest against the earnings growth recorded to the 2025 fiscal year. Alphabet, at $338.46 and $4,166.1bn of market value, is on 9.3 times sales, 6.5 times book and 24.4 times EV/EBITDA. Its P/E and PEG are not shown because trailing net income is inflated by non-operating items and any earnings multiple built on it would mislead. Free-cash-flow yield tilts the same way: 2.59% at Meta against 1.28% at Alphabet, both thin in absolute terms. Price-to-book is the one measure where the two nearly meet.

Growth profile

On the growth record Meta has the edge. Measured from fiscal 2022 to fiscal 2025, revenue compounded at 19.89% a year at Meta against 12.51% at Alphabet; over the longer run from fiscal 2020 the two converge, 18.51% versus 17.15%, which suggests Meta's advantage is concentrated in the more recent stretch — and that the 2022 base year was a weaker one for Meta, flattering the three-year figure. Earnings per share tell a similar story with the same caveat: Meta compounded EPS at 39.84% over three years but only 18.41% over five, while Alphabet's 33.34% and 29.83% are far more consistent across both windows. Read together, Alphabet's growth has been steadier; Meta's has been faster lately from a lower starting point. The verdict goes to Meta on the headline rates.

Profitability and quality

Quality goes to Meta, though the comparison is partly one-sided. Meta converted its trailing revenue into a 38.08% operating margin and a 29.84% net margin, on an 81.75% gross margin, and earned 29.85% on equity and 20.53% on invested capital. Alphabet posted a 33.11% operating margin on a 60.9% gross margin and 17.59% return on invested capital. Its net margin and ROE are not available here: with trailing net income of $244.2bn against $147.6bn of operating profit, both would be distorted by non-operating gains rather than describing the operating business. That makes ROIC the fairer like-for-like measure of capital efficiency, and Meta leads it by roughly three percentage points. In absolute dollars the ranking reverses — Alphabet's operating profit of $147.6bn is well ahead of Meta's $86.9bn.

Balance-sheet risk

Here Alphabet wins. As at 30 June 2026 it held $55.9bn of cash against $100.2bn of total debt, giving net debt of just 0.26 times EBITDA, a current ratio of 2.72 and interest cover of 65.6 times. Meta held $15.5bn of cash against $83.7bn of debt, for 0.62 times net debt to EBITDA, a 2.23 current ratio and 43.6 times interest cover. Neither position is remotely stretched — both cover interest dozens of times over and both hold current assets at more than twice current liabilities — but Alphabet is the more liquid on every line, with a far larger cash cushion relative to borrowings. Shareholders' equity of $640.5bn also dwarfs Meta's $261.2bn. The gap is one of degree within two very strong balance sheets rather than a warning about either.

Price performance and shareholder returns

Shareholder returns are scored a tie, and the figures explain why. Meta paid $2.10 a share over the twelve months to June 2026 for a 0.34% yield on a 7.88% payout ratio, with a 0.21% buyback yield. Alphabet paid $0.85 for a 0.25% yield on a 4.22% payout, with a 0.42% buyback yield. Meta distributes slightly more through dividends, Alphabet slightly more through repurchases, and both together amount to well under one percent of market value — these are reinvestment-first companies, not income holdings. The very low payout ratios at both leave ample room for increases from earnings, and free cash flow of $41.0bn at Meta and $53.3bn at Alphabet covers the current distributions many times over. Our best-for-income tag points to Meta, but on a narrow margin.

Which stock fits which investor

An investor screening on valuation multiples finds more to work with at Meta: 15.1 times EV/EBITDA, 6.9 times sales and a 0.58 PEG are all lower than Alphabet's comparable figures, and the 2.59% free-cash-flow yield is double Alphabet's. Those prioritising margin quality and capital efficiency will note Meta's 38.08% operating margin and 20.53% ROIC against 33.11% and 17.59%. Balance-sheet conservatism argues the other way — Alphabet's 0.26 times net debt to EBITDA and 65.6 times interest cover are the sturdier set, and its EPS growth has been steadier across both the three- and five-year windows. Income seekers have little to choose between yields of 0.34% and 0.25%. Overall the scoring is 4-2 to Meta, but the case rests heavily on price paid rather than on business scale, where Alphabet is far larger.

• Value: META
• Growth: META
• Income: META
• Quality: META

Frequently asked questions

Why is there no P/E ratio shown for Alphabet?

Alphabet's trailing net income to June 2026 of $244.2bn sits well above its $147.6bn of operating profit, meaning non-operating gains make up a large share of reported earnings. Any P/E, PEG, net margin or ROE built on that figure would describe one-off items rather than the business, so those metrics have been withheld. EV/EBITDA of 24.36 and 9.34 times sales remain usable.

Which of the two is cheaper?

Meta, on every shared measure at the 4 September 2026 close: 15.05 times EV/EBITDA against 24.36, 6.93 times sales against 9.34, and a free-cash-flow yield of 2.59% against 1.28%. Price-to-book is the closest, 6.06 versus 6.50.

Which company has grown faster?

Meta on the headline rates — revenue compounded 19.89% a year from fiscal 2022 to fiscal 2025 versus Alphabet's 12.51%. Over five years from fiscal 2020 the two are close, 18.51% against 17.15%, and Alphabet's EPS growth is the more consistent at 29.83% over five years versus Meta's 18.41%.

Which has the stronger balance sheet?

Alphabet. At 30 June 2026 it held $55.9bn of cash against $100.2bn of debt, net debt of 0.26 times EBITDA, a 2.72 current ratio and 65.6 times interest cover, ahead of Meta's 0.62 times, 2.23 and 43.6 times respectively.

Are either of these income stocks?

Not really. Meta yields 0.34% on a 7.88% payout ratio and Alphabet 0.25% on a 4.22% payout, with buyback yields of 0.21% and 0.42%. Both retain the overwhelming majority of earnings, and our scoring rates shareholder returns a tie.

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