Facebook Inc (FB) and Google Inc (GOOG) Looking More Like Rivals

Which company has more buying power?

Google has a market capitalization of about $304 billion compared to Facebook’s market cap of around $63 billion. However, Facebook’s cash is growing rapidly, putting it in a better position to buy. In 2010, the company had nearly $1.8 billion yet last year boasted nearly $2.4 billion — that represents a 33% increase.

Google, on the other hand, had cash and equivalents of nearly $9 billion in 2010 and now has just over $8 billion — that represents a decrease of about 13%. It should be noted, however, that cash and equivalents fluctuate rapidly, and companies also make purchases with debt and assets. But it does indicate a stronger position for Facebook Inc (NASDAQ:FB).

Is it clear which company will grow faster?

Knowing which company will grow faster depends on the quality of purchases each makes. Google Inc (NASDAQ:GOOG)’s acquisition of Waze comes with 50 million users and shows it’s not only able to outbid Facebook, but that it’s also able to work with a potential acquisition on some of its conditions. In the short-term, I’d put my money alongside Google. But as a long-term investor, Facebook looks to be the more attractive, due to it’s rising cash flow, user base, and top notch CEO Mark Zuckerberg.

The article Facebook and Google Looking More Like Rivals originally appeared on Fool.com and is written by Phillip Woolgar.

Phillip Woolgar has no position in any stocks mentioned. The Motley Fool recommends Facebook and Google. The Motley Fool owns shares of Facebook and Google. Phillip is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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