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Alphabet Inc. (GOOGL) vs T. Rowe Price Group, Inc. (TROW): Which Is the Better Buy in 2026?

As of 2026-11-01, GOOGL is overvalued at $280, with a DCF intrinsic value of $8 and a margin of safety of -3448%. TROW is undervalued at $104, with an intrinsic value of $187 and a margin of safety of 45%. Of the two, TROW has the wider margin of safety.

GOOGL
Alphabet Inc.
$279.84
VS
TROW
T. Rowe Price Group, Inc.
$103.90

Rewards

GOOGL
  • ★Alphabet Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Gross margin of 60.9% 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.
TROW
  • ★T. Rowe Price Group, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★T. Rowe Price Group, Inc. scores 83/100 on the Economic Moat Score (Wide Moat), with reinvestment efficiency as the strongest competitive dimension.
  • ★Each dollar of retained earnings has created $1.95 of earning power — management is creating shareholder value.

Risks

GOOGL
    TROW
    • ⚠PEG ratio of 2.15 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
    • ⚠Free cash flow has declined at a 11.3% CAGR over the past 4 years — a concerning trend.

    Key Valuation Metrics

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    GOOGL
    TROW
    Valuation
    $-1.16B
    Free Cash Flow
    $2.09B
    -0.03%
    FCF Yield
    9.44%
    14.61
    Trailing P/E
    10.52
    18.49
    Forward P/E
    10.24
    Quality & Moat
    14.30%
    ROIC
    17.46%
    44.29%
    ROE
    18.20%
    60.86%
    Gross Margin
    52.25%
    0.98
    PEG Ratio
    2.15
    Balance Sheet Safety
    Net cash
    Net Debt / Equity
    Net cash
    N/A
    Interest Coverage
    N/A
    -0.62
    Net Debt / EBITDA
    -0.96
    0.31%
    Dividend Yield
    5.00%
    GOOGL: 3Ties: 1TROW: 8
    GOOGLTROW

    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.

    TROW

    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
    TROW
    $-0.81
    created per $1 retained over 3 years
    Market Cap Declined
    Σ Retained
    $2.58B
    Δ Market Cap
    $-2.09B
    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
    3447.8% Overvalued
    Price is 3447.8% above estimated fair value
    Current Price: $279.84
    Fair Value: $7.89
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued
    TROW
    44.5% Margin of Safety
    Price is 44.5% below estimated fair value
    Current Price: $103.90
    Fair Value: $187.30
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued

    Reverse DCF — Market-Implied Growth

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    GOOGL

    Requires positive FCF to compute implied growth rate.

    TROW

    What growth rate is the market pricing in at $104?

    -5.1%
    Market-Implied Owner Earnings Growth
    Standard FCF implies -3.1%

    The market implies -5.1% Owner Earnings growth, below historical trends — potential opportunity.

    Standard FCF implies a more demanding -3.1%, reflecting heavy growth investment expected to generate future returns.

    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.
    TROW
    83/100
    Wide Moat
    70+ Wide · 40-69 Narrow · <40 None

    Wide moat with strength across all dimensions. Reinvestment Efficiency 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 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.
    TROW
    -2.51
    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 1.6%Institutions 80.8%Retail & Other 17.6%
    No. of Institutional Holders7,451
    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.
    TROW
    Insiders 1.7%Institutions 91.9%Retail & Other 6.4%
    No. of Institutional Holders1,576
    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
    TROW
    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
    TROW
    1
    Sells (3M)
    3
    Sells (12M)
    Total value (12M): $1.86M
    NELSON JOSHUA B.
    Officer
    $1.12M
    @ $111.82 · 2026-08-25
    JACKSON STEPHON A.
    Officer
    $307,680
    @ $102.56 · 2026-05-13
    HUSAIN ARIF
    Vice President
    $434,336
    @ $101.96 · 2025-12-10
    MACLELLAN ROBERT FRANCIS
    Director
    $324,466
    @ $105.01 · 2025-09-22
    SAWYER DOROTHY C
    Vice President
    $190,860
    @ $95.43 · 2025-06-11
    HIEBLER JESSICA M
    Officer
    $93,879
    @ $96.98 · 2025-05-12
    MACLELLAN ROBERT FRANCIS
    Director
    $362,120
    @ $91.56 · 2025-03-31
    HIEBLER JESSICA M
    Officer
    $126,965
    @ $107.87 · 2025-02-14
    HUSAIN ARIF
    Vice President
    $449,318
    @ $109.27 · 2025-02-11
    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
    😨Fear(23/100)

    "Market is pessimistic — investigate whether fears are temporary or structural"

    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.
    TROW
    FearGreed
    😐Neutral(45/100)

    "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: Fear (23)
    TROW
    ⚪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 (45)
    View GOOGL Full AnalysisView TROW Full Analysis

    Frequently Asked Questions: GOOGL vs TROW

    Is Alphabet Inc. or T. Rowe Price Group, Inc. more undervalued in 2026?▼

    Based on our discounted cash flow model, TROW trades at a 44.5% margin of safety (intrinsic value $187 vs. price $104), compared to GOOGL's -3447.8% margin of safety (intrinsic $8 vs. $280).

    Which stock has a wider economic moat, Alphabet Inc. or T. Rowe Price Group, Inc.?▼

    GOOGL scores 89/100 (Wide moat), while TROW scores 83/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

    Is Alphabet Inc. in financial distress?▼

    GOOGL's Altman Z-Score of 2.4 places it in the Grey zone, signaling elevated bankruptcy risk. TROW scores 8.3 (Safe 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 T. Rowe Price Group, Inc.?▼

    T. Rowe Price Group, Inc. (TROW) generates a 9.4% free cash flow yield, compared to Alphabet Inc.'s -0.0%. 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 T. Rowe Price Group, Inc.?▼

    TROW earns 17.5% ROIC versus GOOGL's 14.3%. 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 T. Rowe Price Group, Inc.'s?▼

    GOOGL's dividend earns a safety score of 88/100 (Very Safe), compared to TROW's 69/100 (Safe). GOOGL has raised its dividend for 1 consecutive years.

    GOOGL vs TROW: Which Is the Better Buy in 2026? | SafetyMargin.io