Chart of the Week: Microsoft Dominates Google

Google released its earnings last week for the Sept. 30, 2009 quarter-end. The formal SEC filing will come this week, presumably.

For a ten-year-old company, Google’s revenues and profits are astoundingly high. The company last week reported quarterly revenues of nearly $6 billion and quarterly net income of roughly $1.6 billion. That equates to a 27 percent profit margin, which very few publicly-traded firms ever reach.

In fact, those profit margins put Google in the same league as, well, Microsoft. For the quarter-end June 30, 2009, Microsoft recorded a profit margin of 23 percent, rivaling Google’s 27 percent.

But, by almost every other financial yardstick, Microsoft remains a much larger and much more profitable company than Google. Comparing recent quarterly results, Microsoft recorded revenue of $13 billion to Google’s $6 billion. Microsoft’s quarterly net income was roughly $3 billion to Google’s $1.6 billion. As of June 30, Microsoft held roughly $31 billion of cash and investments, versus Google’s $19 billion. And Microsoft’s recent market capitalization (price of the common stock times the number of shares outstanding) was $236 billion to Google’s $174 billion.

Competing in the search engine market, Google dominates Microsoft. But comparing the financial strength of both companies, one could say that Microsoft dominates Google.

PEC Staff

PEC Staff

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