SafetyMargin.ioSafetyMargin.io
BlogWatchlistCompare
Compare Stocks › ALGN vs GOOGL

Align Technology, Inc. (ALGN) vs Alphabet Inc. (GOOGL)

ALGN
Align Technology, Inc.
$176.25
VS
GOOGL
Alphabet Inc.
$307.13

Rewards

ALGN
  • ★Align Technology, Inc. has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • ★Gross margin of 69.8% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Align Technology, Inc. scores 91/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
GOOGL
  • ★Alphabet Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Alphabet Inc. scores 89/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
  • ★Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.

Risks

ALGN
    GOOGL
    • ⚠FCF yield of 2.0% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.

    Key Valuation Metrics

    Learn more →
    ALGN
    GOOGL
    Valuation
    $483.69M
    Free Cash Flow
    $73.27B
    3.82%
    FCF Yield
    1.97%
    31.14
    Trailing P/E
    28.41
    14.37
    Forward P/E
    22.88
    Quality & Moat
    17.13%
    ROIC
    20.83%
    10.13%
    ROE
    31.83%
    69.80%
    Gross Margin
    59.65%
    0.87
    PEG Ratio
    0.91
    Balance Sheet Safety
    0.03
    Debt / Equity
    0.16
    N/A
    Interest Coverage
    N/A
    -1.15
    Net Debt / EBITDA
    -0.40
    N/A
    Dividend Yield
    0.27%
    ALGN: 5Ties: 2GOOGL: 4
    ALGNGOOGL

    Historical Fundamentals

    Learn more →
    ALGN

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

    GOOGL

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

    $1 Retained Earnings Test

    Learn more →
    ALGN
    $-4.04
    created per $1 retained over 3 years
    Market Cap Declined
    Σ Retained
    $1.28B
    Δ Market Cap
    $-5.15B
    Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
    > $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
    GOOGL
    $9.18
    created per $1 retained over 3 years
    Exceptional Value Creator
    Σ Retained
    $288.67B
    Δ Market Cap
    +$2.65T
    Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
    > $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

    Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
    > $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

    Discounted Cash Flow (DCF) Analysis

    Learn more →
    ALGN
    23.3% Overvalued
    Price is 23.3% above estimated fair value
    Current Price: $176.25
    Fair Value: $142.95
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued
    GOOGL
    20.0% Margin of Safety
    Price is 20.0% below estimated fair value
    Current Price: $307.13
    Fair Value: $384.04
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued

    Reverse DCF — Market-Implied Growth

    Learn more →
    ALGN

    What growth rate is the market pricing in at $176?

    +12.5%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +10.3%

    The market implies +12.5% Owner Earnings growth, above historical trends.

    Standard FCF implies a demanding +10.3%, reflecting heavy growth investment.

    GOOGL

    What growth rate is the market pricing in at $307?

    +12.1%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +20.2%

    The market implies +12.1% Owner Earnings growth, below historical trends — potential opportunity.

    Standard FCF implies a more demanding +20.2%, reflecting heavy growth investment expected to generate future returns.

    Economic Moat Score

    Learn more →
    ALGN
    91/100
    Wide Moat
    70+ Wide · 40-69 Narrow · <40 None

    Wide moat with strength across all dimensions. Revenue Predictability is the standout factor.

    Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.
    GOOGL
    89/100
    Wide Moat
    70+ Wide · 40-69 Narrow · <40 None

    Wide moat driven primarily by roic consistency. Reinvestment Efficiency is the area most vulnerable to competitive pressure.

    Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

    Forensic Accounting

    Learn more →
    ALGN
    -2.52
    Unlikely Manipulator
    Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

    M-Score Trend

    Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
    GOOGL
    -2.92
    Unlikely Manipulator
    Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

    M-Score Trend

    Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

    Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

    Ownership Breakdown

    Learn more →
    ALGN
    Insiders 6.8%Institutions 96.1%
    No. of Institutional Holders966
    High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
    GOOGL
    Insiders 0.6%Institutions 80.8%Retail & Other 18.6%
    No. of Institutional Holders7,206
    High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

    High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

    Insider Buying Activity

    Learn more →
    ALGN
    0
    Buys (3M)
    1
    Buys (12M)
    Total value (12M): $996,131
    HOGAN JOSEPH M
    Chief Executive Officer
    $996,131
    @ $131.49 · 2025-08-01
    LARKIN CHARLES RAYMOND JR
    Director
    $1.53M
    @ $235.33 · 2024-08-15
    Open market purchases · includes direct & indirect ownership · excludes option exercises
    GOOGL
    0
    Buys (3M)
    0
    Buys (12M)
    No open market insider purchases found.
    Open market purchases · includes direct & indirect ownership · excludes option exercises

    Open market purchases · includes direct & indirect ownership · excludes option exercises.

    Insider Selling Activity

    Learn more →
    ALGN
    1
    Sells (3M)
    1
    Sells (12M)
    Total value (12M): $1.51M
    MORICI JOHN F.
    Chief Financial Officer
    $1.51M
    @ $189.31 · 2026-02-18
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
    GOOGL
    0
    Sells (3M)
    0
    Sells (12M)
    No open market insider sales found.
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

    🎭 Mr. Market's Mood

    Learn more →
    ALGN
    FearGreed
    😐Neutral(46/100)

    "Market is pricing this stock without strong emotion in either direction"

    Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
    GOOGL
    FearGreed
    😐Neutral(60/100)

    "Market is pricing this stock without strong emotion in either direction"

    Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

    Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

    ⚖️ Buffett Signal

    Learn more →
    ALGN
    ⚪Awaiting DCF Data

    The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

    DCF Margin of Safety: N/AMr. Market's Mood: Neutral (46)
    GOOGL
    ⚪Awaiting DCF Data

    The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

    DCF Margin of Safety: N/AMr. Market's Mood: Neutral (60)
    View ALGN Full AnalysisView GOOGL Full Analysis
    Align Technology, Inc. (ALGN) vs Alphabet Inc. (GOOGL) Stock Comparison | SafetyMargin.io