Over a five-year period ending October 2026, Alphabet (GOOGL) significantly outperformed its industry peer Zillow (ZG), with GOOGL shares rising 90.8% while ZG fell 69.8%. The analysis attributes this divergence primarily to differences in profit generation rather than sales growth or valuation multiples. While both companies experienced similar revenue growth rates over the last three years, Alphabet's total revenue increased by 96.9% between 2021 and 2026 compared to a 29.3% decline for Zillow during the same window. The primary driver of the performance gap was earnings per share, which climbed 269.2% for Alphabet versus a 62.1% drop for Zillow. Alphabet achieved this by expanding its operating margin by 3.0 points while simultaneously reducing its diluted share count by 8.6%. In contrast, Zillow's operating margin shrank by 6.3 points, leading to a substantial decline in net income despite recent efforts to improve efficiency through restructuring. Zillow is currently executing a restructuring plan that involves cutting approximately 7% of its workforce to operate more efficiently. Management expects EBITDA margins to expand in 2026, guiding to roughly 25% for fiscal Q3 2026, though this adjusted metric excludes upcoming restructuring costs. The company's reported operating margin improved to 3.4% in fiscal Q2 2026 from a loss of 1.7% in the prior year, signaling an ongoing turnaround effort in its rental and for-sale businesses.