Comprehensive Stock Comparison
Compare Corpay, Inc. (CPAY) vs Microsoft Corporation (MSFT) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | MSFT | 14.9% revenue growth vs CPAY's 5.8% |
| Value | CPAY | Lower P/E (12.5x vs 23.8x) |
| Quality / Margins | MSFT | 39.0% net margin vs CPAY's 24.4% |
| Stability / Safety | MSFT | Beta 0.88 vs CPAY's 1.46, lower leverage |
| Dividends | MSFT | 0.8% yield; 19-year raise streak; CPAY pays no meaningful dividend |
| Momentum (1Y) | MSFT | -0.2% vs CPAY's -11.4% |
| Efficiency (ROA) | MSFT | 17.9% ROA vs CPAY's 5.3%, ROIC 27.9% vs 14.7% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Corpay is a global payments company that helps businesses manage vehicle-related expenses, corporate payments, and lodging costs. It generates revenue primarily through transaction fees from its vehicle payment solutions — fuel, tolls, and fleet maintenance — and corporate payment automation services, with its cross-border and virtual card products forming significant segments. The company's competitive advantage lies in its specialized vertical expertise in complex business payments and its established network of merchants and fuel providers across multiple countries.
Microsoft is a global technology company that develops software, cloud services, and hardware products. It generates revenue primarily through cloud services like Azure (~40% of revenue), productivity software including Office 365 and Dynamics, and personal computing through Windows licensing and Surface devices. Its key competitive advantage is the deeply entrenched enterprise ecosystem—Windows and Office dominance creates a powerful network effect that drives adoption of its cloud and productivity suites.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
MSFT leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). CPAY leads in 1 (Valuation Metrics). 1 tied.
Financial Metrics (TTM)
MSFT is the larger business by revenue, generating $305.5B annually — 70.8x CPAY's $4.3B. MSFT is the more profitable business, keeping 39.0% of every revenue dollar as net income compared to CPAY's 24.4%.
| Metric | CPAYCorpay, Inc. | MSFTMicrosoft Corpora… |
|---|---|---|
| RevenueTrailing 12 months | $4.3B | $305.5B |
| EBITDAEarnings before interest/tax | $2.3B | $184.8B |
| Net IncomeAfter-tax profit | $1.1B | $119.3B |
| Free Cash FlowCash after capex | $1.1B | $77.4B |
| Gross MarginGross profit ÷ Revenue | +76.1% | +68.6% |
| Operating MarginEBIT ÷ Revenue | +44.5% | +46.7% |
| Net MarginNet income ÷ Revenue | +24.4% | +39.0% |
| FCF MarginFCF ÷ Revenue | +26.5% | +25.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +13.9% | +16.7% |
| EPS Growth (YoY)Latest quarter vs prior year | +0.3% | +59.8% |
Valuation Metrics
At 23.3x trailing earnings, CPAY trades at a 19% valuation discount to MSFT's 28.8x P/E. Adjusting for growth (PEG ratio), MSFT offers better value at 1.53x vs CPAY's 3.30x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | CPAYCorpay, Inc. | MSFTMicrosoft Corpora… |
|---|---|---|
| Market CapShares × price | $22.8B | $2.92T |
| Enterprise ValueMkt cap + debt − cash | $29.3B | $2.95T |
| Trailing P/EPrice ÷ TTM EPS | 23.27x | 28.79x |
| Forward P/EPrice ÷ next-FY EPS est. | 12.50x | 23.84x |
| PEG RatioP/E ÷ EPS growth rate | 3.30x | 1.53x |
| EV / EBITDAEnterprise value multiple | 13.68x | 18.12x |
| Price / SalesMarket cap ÷ Revenue | 5.74x | 10.36x |
| Price / BookPrice ÷ Book value/share | 7.42x | 8.54x |
| Price / FCFMarket cap ÷ FCF | 12.92x | 40.74x |
Profitability & Efficiency
MSFT delivers a 30.5% return on equity — every $100 of shareholder capital generates $31 in annual profit, vs $26 for CPAY. MSFT carries lower financial leverage with a 0.18x debt-to-equity ratio, signaling a more conservative balance sheet compared to CPAY's 2.54x. On the Piotroski fundamental quality scale (0–9), MSFT scores 6/9 vs CPAY's 4/9, reflecting solid financial health.
| Metric | CPAYCorpay, Inc. | MSFTMicrosoft Corpora… |
|---|---|---|
| ROE (TTM)Return on equity | +25.5% | +30.5% |
| ROA (TTM)Return on assets | +5.3% | +17.9% |
| ROICReturn on invested capital | +14.7% | +27.9% |
| ROCEReturn on capital employed | +20.0% | +29.7% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 6 |
| Debt / EquityFinancial leverage | 2.54x | 0.18x |
| Net DebtTotal debt minus cash | $6.4B | $30.3B |
| Cash & Equiv.Liquid assets | $1.6B | $30.2B |
| Total DebtShort + long-term debt | $8.0B | $60.6B |
| Interest CoverageEBIT ÷ Interest expense | 4.97x | 56.44x |
Total Returns (with DRIP)
A $10,000 investment in MSFT five years ago would be worth $17,186 today (with dividends reinvested), compared to $11,508 for CPAY. Over the past 12 months, MSFT leads with a -0.2% total return vs CPAY's -11.4%. The 3-year compound annual growth rate (CAGR) favors MSFT at 17.3% vs CPAY's 14.8% — a key indicator of consistent wealth creation.
| Metric | CPAYCorpay, Inc. | MSFTMicrosoft Corpora… |
|---|---|---|
| YTD ReturnYear-to-date | +8.2% | -16.8% |
| 1-Year ReturnPast 12 months | -11.4% | -0.2% |
| 3-Year ReturnCumulative with dividends | +51.4% | +61.3% |
| 5-Year ReturnCumulative with dividends | +15.1% | +71.9% |
| 10-Year ReturnCumulative with dividends | +154.6% | +718.2% |
| CAGR (3Y)Annualised 3-year return | +14.8% | +17.3% |
Risk & Volatility
MSFT is the less volatile stock with a 0.88 beta — it tends to amplify market swings less than CPAY's 1.46 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. CPAY currently trades 86.6% from its 52-week high vs MSFT's 70.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | CPAYCorpay, Inc. | MSFTMicrosoft Corpora… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.46x | 0.88x |
| 52-Week HighHighest price in past year | $375.61 | $555.45 |
| 52-Week LowLowest price in past year | $252.84 | $344.79 |
| % of 52W HighCurrent price vs 52-week peak | +86.6% | +70.7% |
| RSI (14)Momentum oscillator 0–100 | 50.9 | 39.8 |
| Avg Volume (50D)Average daily shares traded | 512K | 28.4M |
Analyst Outlook
Wall Street rates CPAY as "Buy" and MSFT as "Buy". Consensus price targets imply 48.6% upside for MSFT (target: $584) vs 11.4% for CPAY (target: $362). MSFT is the only dividend payer here at 0.82% yield — a key consideration for income-focused portfolios.
| Metric | CPAYCorpay, Inc. | MSFTMicrosoft Corpora… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $362.29 | $583.67 |
| # AnalystsCovering analysts | 18 | 78 |
| Dividend YieldAnnual dividend ÷ price | — | +0.8% |
| Dividend StreakConsecutive years of raises | — | 19 |
| Dividend / ShareAnnual DPS | — | $3.23 |
| Buyback YieldShare repurchases ÷ mkt cap | +5.6% | +0.6% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Corpay, Inc. (CPAY) | 100 | 114.44 | +14.4% |
| Microsoft Corporati… (MSFT) | 100 | 257.35 | +157.4% |
Microsoft Corporati… (MSFT) returned +72% over 5 years vs Corpay, Inc. (CPAY)'s +15%. A $10,000 investment in MSFT 5 years ago would be worth $17,186 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Corpay, Inc. (CPAY) | $1.8B | $4.0B | +117.0% |
| Microsoft Corporati… (MSFT) | $91.2B | $281.7B | +209.1% |
Microsoft Corporation's revenue grew from $91.2B (2016) to $281.7B (2025) — a 13.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Corpay, Inc. (CPAY) | 24.7% | 25.3% | +2.2% |
| Microsoft Corporati… (MSFT) | 22.5% | 36.1% | +60.4% |
Microsoft Corporation's net margin went from 23% (2016) to 36% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Corpay, Inc. (CPAY) | 24.3 | 24.2 | -0.4% |
| Microsoft Corporati… (MSFT) | 26.3 | 35.5 | +35.0% |
Corpay, Inc. has traded in a 15x–34x P/E range over 8 years; current trailing P/E is ~23x. Microsoft Corporation has traded in a 25x–48x P/E range over 9 years; current trailing P/E is ~29x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Corpay, Inc. (CPAY) | 4.75 | 13.97 | +194.1% |
| Microsoft Corporati… (MSFT) | 2.1 | 13.64 | +549.5% |
Microsoft Corporation's EPS grew from $2.10 (2016) to $13.64 (2025) — a 23% CAGR.
Chart 6Free Cash Flow — 5 Years
Corpay, Inc. generated $2B FCF in 2024 (+63% vs 2021). Microsoft Corporation generated $72B FCF in 2025 (+28% vs 2021).
CPAY vs MSFT: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is CPAY or MSFT a better buy right now?
Corpay, Inc. (CPAY) offers the better valuation at 23.3x trailing P/E (12.5x forward), making it the more compelling value choice. Analysts rate Corpay, Inc. (CPAY) a "Buy" — based on 18 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — CPAY or MSFT?
On trailing P/E, Corpay, Inc. (CPAY) is the cheapest at 23.3x versus Microsoft Corporation at 28.8x. On forward P/E, Corpay, Inc. is actually cheaper at 12.5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Microsoft Corporation wins at 1.27x versus Corpay, Inc.'s 1.77x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — CPAY or MSFT?
Over the past 5 years, Microsoft Corporation (MSFT) delivered a total return of +71.9%, compared to +15.1% for Corpay, Inc. (CPAY). A $10,000 investment in MSFT five years ago would be worth approximately $17K today (assuming dividends reinvested). Over 10 years, the gap is even starker: MSFT returned +718.2% versus CPAY's +154.6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — CPAY or MSFT?
By beta (market sensitivity over 5 years), Microsoft Corporation (MSFT) is the lower-risk stock at 0.88β versus Corpay, Inc.'s 1.46β — meaning CPAY is approximately 66% more volatile than MSFT relative to the S&P 500. On balance sheet safety, Microsoft Corporation (MSFT) carries a lower debt/equity ratio of 18% versus 3% for Corpay, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — CPAY or MSFT?
Microsoft Corporation (MSFT) is the more profitable company, earning 36.1% net margin versus 25.3% for Corpay, Inc. — meaning it keeps 36.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MSFT leads at 45.6% versus 45.0% for CPAY. At the gross margin level — before operating expenses — CPAY leads at 78.1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is CPAY or MSFT more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Microsoft Corporation (MSFT) is the more undervalued stock at a PEG of 1.27x versus Corpay, Inc.'s 1.77x. A PEG below 1.5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Corpay, Inc. (CPAY) trades at 12.5x forward P/E versus 23.8x for Microsoft Corporation — 11.3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MSFT: 48.6% to $583.67.
07Which pays a better dividend — CPAY or MSFT?
In this comparison, MSFT (0.8% yield) pays a dividend. CPAY does not pay a meaningful dividend and should not be held primarily for income.
08Is CPAY or MSFT better for a retirement portfolio?
For long-horizon retirement investors, Microsoft Corporation (MSFT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.88), 0.8% yield, +718.2% 10Y return). Both have compounded well over 10 years (MSFT: +718.2%, CPAY: +154.6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between CPAY and MSFT?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. MSFT pays a dividend while CPAY does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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