How Does Meta Platforms Stock Compare With Peers?

+28.49%
Upside
662
Market
850
Trefis
META: Meta Platforms logo
META
Meta Platforms

Meta Platforms’ stock has delivered positive returns over the past year, yet recent aggressive AI spending has raised investor concerns. How does it measure up against peers rapidly evolving in AI and digital advertising? A closer look reveals strong revenue growth and profitability with a moderate valuation, but significant metaverse investments and intensifying competition, coupled with rising AI capital expenditures, could weigh on near-term upside.

  • META’s 43.2% operating margin reflects AI ad efficiency; MSFT’s 46.3% is higher due to robust cloud services like Azure.
  • META’s 21.3% revenue growth, outpacing peers, is driven by AI-powered ad targeting and higher ad monetization.
  • META’s 5.5% stock gain and 25.4 PE reflect investor caution on massive AI capex versus peers’ clearer AI monetization.

Here’s how Meta Platforms stacks up across size, valuation, and profitability versus key peers.

  META MSFT GOOGL Z SNAP
Market Cap ($ Bil) 1,485.8 3,614.0 3,538.9 16.5 13.6
Revenue ($ Bil) 189.5 293.8 385.5 2.5 5.8
PE Ratio 25.4 34.4 28.5 -516.6 -27.4
LTM Revenue Growth 21.3% 15.6% 13.4% 15.2% 11.7%
LTM Operating Margin 43.2% 46.3% 32.2% -3.6% -10.5%
LTM FCF Margin 23.7% 26.6% 19.1% 6.0% 7.2%
12M Market Return 5.5% 17.3% 65.1% -9.3% -23.6%

For more details on Meta Platforms, read Buy or Sell META Stock. Below we compare META’s growth, margin, and valuation with peers across years

Revenue Growth Comparison

Relevant Articles
  1. Better Value & Growth: META Leads Alphabet Stock
  2. What Could Spark the Next Big Move In Meta Platforms Stock
  3. Meta Platforms Stock Can Sink, Here Is How
  4. Is Meta Platforms Stock Built to Withstand More Downside?
  5. Meta Platforms Stock Down 20%,Time to Buy?
  6. Can Meta Platforms Stock Recover If Markets Fall?

  LTM 2025 2024 2023 2022
META 21.3% 21.9% 15.7% -1.1%
MSFT 15.6% 14.9% 15.7% 6.9%  
GOOGL 13.4% 13.9% 8.7% 9.8%
Z 15.2% 15.0% -0.7% -8.2%
SNAP 11.7% 16.4% 0.1% 11.8%

Operating Margin Comparison

  LTM 2025 2024 2023 2022
META 43.2% 42.2% 34.7% 24.8%
MSFT 46.3% 45.6% 44.6% 41.8%  
GOOGL 32.2% 32.1% 27.4% 26.5%
Z -3.6% -8.5% -12.7% -3.5%
SNAP -10.5% -14.7% -30.4% -30.3%

PE Ratio Comparison

  LTM 2025 2024 2023 2022
META 25.4 23.8 23.3 13.9
MSFT 34.4 30.8 31.7 24.7  
GOOGL 28.5 23.3 23.9 19.2
Z -516.6 -154.8 -85.5 -77.2
SNAP -27.4 -25.6 -20.6 -10.1

Still not sure about META stock? Consider portfolio approach.

Portfolios Over Individual Stock Picks

Stocks soar and sink – the key is staying invested. A balanced portfolio keeps you in the market, boosts gains and reduces single stock risk

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.