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Compare Stocks › GOOGL vs O

Alphabet Inc. (GOOGL) vs Realty Income Corporation (O): Which Is the Better Buy in 2026?

As of 2026-06-19, GOOGL is overvalued at $368, with a DCF intrinsic value of $94 and a margin of safety of -290%. O is overvalued at $60, with an intrinsic value of $0 and a margin of safety of -100%. Of the two, O has the wider margin of safety.

GOOGL
Alphabet Inc.
$368.03
VS
O
Realty Income Corporation
$60.24

Rewards

GOOGL
  • ★Alphabet Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Gross margin of 60.4% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Alphabet Inc. scores 89/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
O
  • ★Gross margin of 92.6% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Free cash flow has grown at a 15.9% CAGR over the past 4 years, demonstrating strong earnings power growth.

Risks

GOOGL
  • ⚠FCF yield of 1.6% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
O
  • ⚠Return on equity has remained below 5% over 4 years — shareholder capital is generating minimal returns.
  • ⚠Share count has increased by 41% over the past 4 years, diluting existing shareholders.
  • ⚠FCF yield of 7.1% suggests reasonable valuation assuming continued moderate growth.

Key Valuation Metrics

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GOOGL
O
Valuation
$73.27B
Free Cash Flow
$3.99B
1.63%
FCF Yield
7.11%
28.09
Trailing P/E
49.38
25.39
Forward P/E
35.00
Quality & Moat
20.98%
ROIC
2.98%
38.88%
ROE
2.83%
60.37%
Gross Margin
92.60%
1.47
PEG Ratio
5.68
Balance Sheet Safety
Net cash
Net Debt / Equity
0.73
N/A
Interest Coverage
N/A
-0.19
Net Debt / EBITDA
5.72
0.24%
Dividend Yield
5.23%
GOOGL: 8Ties: 1O: 3
GOOGLO

Historical Fundamentals

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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. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

O

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

$1 Retained Earnings Test

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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
O
N/A
Net losses over 3 years — test not applicable
Company had negative cumulative retained earnings
Σ Retained
$-4.94B
Δ Market Cap
+$10.77B
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

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GOOGL
289.6% Overvalued
Price is 289.6% above estimated fair value
Current Price: $368.03
Fair Value: $94.46
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
O
Insufficient Data
Enter initial FCF to calculate intrinsic value
Current Price: $60.24
Fair Value: $0.00
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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GOOGL

What growth rate is the market pricing in at $368?

+22.9%
Market-Implied FCF Growth Rate

Market pricing in significantly higher growth than history — aggressive.

O

What growth rate is the market pricing in at $60?

+27.0%
Market-Implied Owner Earnings Growth
Standard FCF implies +8.7%

The market implies +27.0% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +8.7%, reflecting heavy growth investment.

Economic Moat Score

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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.
O
55/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with margin stability as the key competitive advantage. Improving reinvestment efficiency would strengthen the moat.

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

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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.
O
-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.

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

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GOOGL
Insiders 1.2%Institutions 80.8%Retail & Other 18.1%
No. of Institutional Holders7,263
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.
O
Insiders 0.1%Institutions 79.4%Retail & Other 20.5%
No. of Institutional Holders1,884
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

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GOOGL
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
O
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

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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
O
1
Sells (3M)
2
Sells (12M)
Total value (12M): $1.13M
BUSHORE MICHELLE
General Counsel
$461,908
@ $62.42 · 2026-04-02
PREUSSE MARY HOGAN
Director
$664,730
@ $60.43 · 2025-09-30
PREUSSE MARY HOGAN
Director
$107,128
@ $62.57 · 2024-09-11
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

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GOOGL
FearGreed
😐Neutral(58/100)

"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.
O
FearGreed
😐Neutral(49/100)

"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

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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 (58)
O
⚪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 (49)
View GOOGL Full AnalysisView O Full Analysis

Frequently Asked Questions: GOOGL vs O

Is Alphabet Inc. or Realty Income Corporation more undervalued in 2026?▼

Based on our discounted cash flow model, O trades at a -100.0% margin of safety (intrinsic value $0 vs. price $60), compared to GOOGL's -289.6% margin of safety (intrinsic $94 vs. $368).

Which stock has a wider economic moat, Alphabet Inc. or Realty Income Corporation?▼

GOOGL scores 89/100 (Wide moat), while O scores 55/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Realty Income Corporation in financial distress?▼

O's Altman Z-Score of 1.0 places it in the Distress zone, signaling elevated bankruptcy risk. GOOGL scores 2.4 (Grey zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which company has better free cash flow, Alphabet Inc. or Realty Income Corporation?▼

Realty Income Corporation (O) generates a 7.1% free cash flow yield, compared to Alphabet Inc.'s 1.6%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.

Which stock has higher return on invested capital, Alphabet Inc. or Realty Income Corporation?▼

GOOGL earns 21.0% ROIC versus O's 3.0%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

Which dividend is safer, Alphabet Inc.'s or Realty Income Corporation's?▼

GOOGL's dividend earns a safety score of 88/100 (Very Safe), compared to O's 39/100 (Unsafe). GOOGL has raised its dividend for 1 consecutive years.