InvestMoat

Microsoft vs Google

Microsoft has the wider moat. So why does Google win?

Google edges it, 82 to 81, on valuation.

Microsoft wins on moat and growth, but Google's lead on valuation counts for more.

MSFT · Software

Microsoft Corp.

…

AccumulateFull analysis

GOOGL · Platforms

Alphabet Inc.

…

Strong BuyFull analysis

MSFT

GOOGL

Composite
81
82
(higher)
Moat
90
(higher)
83
Growth
79
(higher)
76
Valuation
69
78
(higher)

MSFT

GOOGL

Bear
$390
$235
Base
$575
$350
Bull
$700
$500
Upside to base
—
—

MSFT

GOOGL

Revenue CAGR, 3–5 yr
15–17%
17-22%

MSFT

GOOGL

Proprietary Data
Strong
Strong
Regulatory Lock-In
Intact
Intact
Network Effects
Strong
Strong
Transaction Embedding
Strong (higher)
Intact
System of Record
Strong (higher)
Intact
Scale Economics
Strong
Strong
Brand & Pricing Power
N/A
N/A

MSFT

GOOGL

Learned Interfaces
Intact
Strong (higher)
Business Logic
Intact (higher)
Weakened
Public Data Access
N/A
Intact (higher)
Talent Scarcity
N/A
Intact (higher)
Bundling
Strong
Strong

Shaded cells mark the higher score or stronger moat on each row. Valuation and composite use the live price when it is available, the same as each stock page.

Which is the better stock, Microsoft or Google?

Google edges it, 82 to 81, on valuation. Microsoft wins on moat and growth, but Google's lead on valuation counts for more. Our rating: Microsoft Accumulate, Google Strong Buy.

Does Microsoft or Google have the wider moat?

Microsoft scores 90 on moat to Google's 83. Microsoft is rated stronger on transaction embedding, system of record and business logic. Google is rated stronger on learned interfaces.

Which is growing faster, Microsoft or Google?

Microsoft scores 79 on growth to Google's 76. We expect Microsoft to grow 15–17% a year, Google 17–22%.

Is Microsoft or Google cheaper right now?

Google scores 78 on valuation to Microsoft's 69. In our base case, Google has more upside: +20% vs +5%.

Scores in the answers use the price each valuation was last struck at; the table above updates with the live price. Not investment advice.