Meta Platforms, Inc. (META)vs Intel Corp. (INTC)

Quick verdict

Meta Platforms (META) and Intel (INTC) sit at opposite ends of the technology spectrum. Meta trades at a trailing P/E of 24.37 and generates a net margin of 32.84%, ROE of 33.22% and ROIC of 19.96%, reflecting a highly profitable, cash-generative advertising business. Intel, by contrast, posts a trailing P/E of -166.11 due to negative earnings, a net margin of -5.9% and negative ROE (-2.95%) and ROIC (-2.81%), indicating ongoing profitability challenges tied to its foundry and manufacturing transition. Meta carries stronger growth metrics (revenue CAGR 3y of 22.17% versus Intel's -0.47%), while Intel offers a materially higher dividend yield (3.66% vs 0.31%). Both hold overall scores of 3, but their verdict profiles differ: Meta rates A across valuation, quality and balance sheet, while Intel is tagged for income and mature-stage characteristics.

2-year relative performance

At-a-glance comparison

Business model and revenue mix

Meta Platforms operates as an internet content and information company within Communication Services, monetising its family of social and messaging apps primarily through advertising, as reflected in its high gross margin of 81.94% and operating margin of 41.21%. Intel operates in the Semiconductors industry within Technology, spanning client computing (CCG), data centre and AI (DCAI), and its Intel Foundry segment, which involves capital-intensive chip design and manufacturing. Intel's gross margin of 35.43% and negative operating margin of -9.45% illustrate the structurally different cost base of semiconductor manufacturing compared with Meta's software-driven, high-margin advertising model. These contrasting business models underpin the divergence in almost every profitability and valuation metric between the two companies.

Valuation

Meta trades at a trailing P/E of 24.37 and forward P/E of 42.61, alongside a price-to-sales ratio of 8.05 and price-to-book of 7.08, with an EV/EBITDA of 15.8 and FCF yield of 4.93%. Its PEG ratio of 3.91 suggests the market is pricing in continued growth beyond near-term earnings. Intel's trailing P/E is negative (-166.11) due to net losses, though its forward P/E of 40.53 implies expected earnings recovery; its price-to-sales of 9.63 exceeds Meta's, while price-to-book of 4.7 is lower. Intel's PEG of -0.02 reflects the distortion from negative earnings growth inputs. Intel's EV/EBITDA of 47.83 is notably higher than Meta's 15.8, and its FCF yield of 3.54% trails Meta's 4.93%, despite Intel's overall valuation verdict being scored A alongside Meta's.

Growth profile

Meta shows stronger top-line expansion, with 3-year revenue CAGR of 22.17% and 5-year revenue CAGR of 24.18%, though its 3-year EPS CAGR is negative at -2.56% against a 5-year EPS CAGR of 30.52%, indicating some recent earnings volatility despite strong revenue trends. Intel's revenue has been roughly flat to declining, with a 3-year revenue CAGR of -0.47% and 5-year revenue CAGR of 14.27%. Its EPS CAGR figures are harder to interpret meaningfully given the shift from profit to loss, though the 3-year EPS CAGR is listed at 98.66% and 5-year at 9.28%, both influenced by base-effect distortions from a low or negative earnings starting point. The overall growth verdict favours Intel (B) over Meta, despite Meta's stronger revenue metrics, per the supplied verdict framework.

Profitability and quality

Meta demonstrates strong profitability across the board: gross margin of 81.94%, operating margin of 41.21%, net margin of 32.84%, ROE of 33.22% and ROIC of 19.96%. These figures support its quality verdict of A. Intel's profitability metrics are markedly weaker, with gross margin of 35.43% but negative operating margin of -9.45%, negative net margin of -5.9%, negative ROE of -2.95% and negative ROIC of -2.81%. This gap reflects Intel's ongoing restructuring and capital investment in foundry capacity versus Meta's asset-light, high-margin advertising model. The quality verdict of A is assigned to Meta in the comparison framework, consistent with its superior margin and return-on-capital profile relative to Intel.

Balance-sheet risk

Both companies carry an A balance sheet verdict, though their profiles differ. Meta holds cash of approximately $15.91 billion against total debt of $10.78 billion, with net debt/EBITDA of 2.55, a current ratio of 2.35 and interest coverage of 12.81. Intel holds substantially more cash at $52.43 billion versus total debt of $21.77 billion, with net debt/EBITDA of 2.98, a current ratio of 2.31 and interest coverage of 14.63. Intel's higher interest coverage and larger cash buffer provide balance sheet resilience despite negative operating profitability, while Meta's lower net debt/EBITDA and strong interest coverage are supported by consistent operating cash generation. Both companies maintain current ratios above 2, indicating adequate short-term liquidity.

Price performance and shareholder returns

Meta's total returns include a YTD return of 6.4%, 1-year return of 13.88%, 3-year annualised return of 47.39% and 5-year annualised return of 18.72%, with a maximum 5-year drawdown of -28.27% and beta of 1.246. Intel's YTD return is negative at -25.9%, but its 1-year return stands at 103.11%, with a 3-year annualised return of 12.79% and 5-year annualised return of 27.8%; its maximum 5-year drawdown is steeper at -45.25% and beta higher at 2.187, indicating greater historical volatility. Meta pays a dividend yield of 0.31% with a payout ratio of 7.57%, while Intel offers a materially higher dividend yield of 3.66% and payout ratio of 35.65%. Buyback yields are 1.68% for Meta and 1.47% for Intel.

Which stock fits which investor

Based on the supplied verdicts, Meta is best suited to investors prioritising value and quality, reflecting its A ratings in valuation and quality alongside a style tag of 'high-growth, high-quality.' Intel is identified as best suited to investors focused on growth and income, consistent with its B verdicts in growth and income and its 'income, mature' style tag, supported by its higher dividend yield of 3.66% and payout ratio of 35.65%. Both companies carry an overall score of 3, suggesting comparable composite standing despite differing underlying drivers—Meta through profitability and capital efficiency, Intel through cash reserves, dividend income and turnaround-linked share price momentum over the past year.

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

Frequently asked questions

Which company is more profitable, META or INTC?

Meta is materially more profitable based on the supplied data, with a net margin of 32.84%, ROE of 33.22% and ROIC of 19.96%, compared with Intel's negative net margin of -5.9%, ROE of -2.95% and ROIC of -2.81%.

Which stock offers a higher dividend yield?

Intel offers a higher dividend yield of 3.66% with a payout ratio of 35.65%, compared with Meta's dividend yield of 0.31% and payout ratio of 7.57%.

How do the valuations of META and INTC compare?

Meta trades at a trailing P/E of 24.37 and EV/EBITDA of 15.8, while Intel's trailing P/E is negative (-166.11) due to losses and its EV/EBITDA is higher at 47.83, though Intel's price-to-book of 4.7 is lower than Meta's 7.08.

Which stock has performed better over the past year?

Intel recorded a stronger 1-year return of 103.11% compared with Meta's 13.88%, though Intel's YTD return of -25.9% is negative versus Meta's positive 6.4%, and Intel's 5-year maximum drawdown of -45.25% is steeper than Meta's -28.27%.

Related comparisons

• AAPL vs INTC
• AAPL vs META
• AMD vs INTC
• AMD vs META
• AMZN vs INTC
• AMZN vs META