Apple vs Alphabet
Add, change or remove companies; up to four.
KIRA’s take AI analyst
I put Apple and Alphabet side by side, using each one’s latest annual report. Here is what stands out:
- Apple is the larger business, with $416.2B of revenue in fiscal 2025 against $402.8B for Alphabet.
- Alphabet grew revenue faster (15.1%, against 6.4%).
- Apple turned more of its sales into free cash flow (23.7% FCF margin, against 18.2%).
- Apple earned a higher return on the capital invested in it (102.9%, against 36.7%).
- Investors pay more for each dollar of Apple’s earnings: a P/E of 39.5x against 15.9x for Alphabet.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Apple
AAPL
4/11
FCF marginReturn on capitalReturn on equityShare count change
Alphabet
GOOGL
6/11
Revenue growth5-year growthGross marginOperating marginNet marginNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | AAPL FY25 | GOOGL FY25 |
|---|---|---|
| Size | ||
| Market cap | $5.06T | $3.90T |
| Revenue | $416.2B | $402.8B |
| Free cash flow | $98.8B | $73.3B |
| Net income | $112.0B | $132.2B |
| Growth | ||
| Revenue growth | 6.4% | 15.1% |
| 5-year growth | 8.7% | 17.2% |
| Share count change | −2.6% | −1.7% |
| Profitability | ||
| Gross margin | 46.9% | 59.7% |
| Operating margin | 32.0% | 32.0% |
| Net margin | 26.9% | 32.8% |
| FCF margin | 23.7% | 18.2% |
| Return on capital | 102.9% | 36.7% |
| Return on equity | 171.4% | 35.7% |
| Balance sheet | ||
| Net debt | $45.2B | −$75.3B |
| Net debt / EBITDA | 0.3x | −0.5x |
| Dividends and buybacks | $106.1B | $55.8B |
| Valuation & quality | ||
| P/E | 39.5x | 15.9x |
| Piotroski F-score | 8 | 8 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.