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The Meta (NASDAQ:META) share price is now flat since the beginning of the year having surged and then slumped, and then recovered somewhat. However, this volatility isn’t that unusual among the mega-cap ‘Magnificent Seven’ this year. Fellow tech giant Alphabet (NASDAQ:GOOGL) has also seen its stock rise and fall.
While these aren’t nose-to-nose competitors, I think it’s worth comparing the two. So which stock’s better value? Let’s take a closer look at some metics to help.
1. Price-to-earnings ratio
Meta’s price-to-earnings (P/E) ratio’s expected to trend steadily lower over the next few years. From 23.4 times in 2025, it’s forecast to fall to 21 times in 2026, 18.2 in 2027, and 16.2 by 2028. This decline reflects analysts’ expectations for consistent earnings growth.
Alphabet, on the other hand, already trades at a lower multiple. Its P/E is projected to drop from 16.1 times in 2025 to 15.1 in 2026, 13.2 in 2027, and 11.4 in 2028. Not only is Alphabet cheaper on a headline basis, but its valuation is expected to become even more attractive as earnings climb.
By 2028, Alphabet’s P/E is set to be nearly five points below Meta’s. This suggests the market currently assigns a premium to Meta’s growth and profitability.
2. Revenue growth
Meta’s top line is forecast to expand at an impressive double-digit pace. Analysts expect revenue to rise from $186.9bn in 2025 to $211.7bn in 2026 (+13.3%), then to $237.1bn in 2027 (+12%), and $263bn by 2028 (+11%). These are strong numbers for a company of Meta’s size, reflecting the continued strength of its core social platforms and new ventures in artificial intelligence (AI) and the metaverse.
Alphabet‘s pace of growth’s expected to be marginally slower in percentage terms. Revenue’s projected to grow from $387.5bn in 2025 to $428.1bn in 2026 (+10.5%), $472.7bn in 2027 (+10.4%), and $518.4bn in 2028 (+9.7%). Once again, strong numbers for a massive revenue base.
3. PEG ratio
The price-to-earnings-to-growth (PEG) ratio offers a more nuanced look at valuation by factoring in expected earnings growth. Meta’s forward PEG sits at 1.34, which is slightly above the sector median, but reasonable. Alphabet’s forward PEG is lower at 1.08, indicating that, relative to its expected earnings growth, Alphabet’s shares may be the better deal.
4. Net debt
Both companies boast fortress-like balance sheets, but Alphabet stands out for its sheer financial firepower. It holds $95.3bn in cash against $28.5bn in total debt, leaving it with a massive net cash position of roughly $67bn. Meta too, is in a strong financial position, with $70.2bn in cash and $49.5bn in debt, for a net cash position of about $20.7bn. While strong, it’s in a notably weaker position than Alphabet
A winner?
Both Meta and Alphabet look set to deliver strong growth and healthy profits over the next several years. Meta offers faster revenue growth. However, Alphabet trades at a lower multiple, boasts a slightly better PEG ratio and has a stronger balance sheet. Personally, I think both are attractive long-term holdings to consider. But on pure value metrics, Alphabet just edges ahead for me.
That said, I think both stocks deserve a place on any tech investor’s watchlist.
