Comprehensive Stock Comparison
Compare Samsara Inc. (IOT) 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 | IOT | 33.3% revenue growth vs MSFT's 14.9% |
| Value | MSFT | Lower P/E (23.8x vs 57.0x) |
| Quality / Margins | MSFT | 39.0% net margin vs IOT's -2.8% |
| Stability / Safety | MSFT | Beta 0.88 vs IOT's 1.49 |
| Dividends | MSFT | 0.8% yield; 19-year raise streak; IOT pays no meaningful dividend |
| Momentum (1Y) | MSFT | -0.2% vs IOT's -39.4% |
| Efficiency (ROA) | MSFT | 17.9% ROA vs IOT's -1.8%, ROIC 27.9% vs -15.8% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Samsara is a technology company that provides an IoT platform connecting physical operations data to its Connected Operations Cloud. It generates revenue primarily through subscription fees for its cloud platform — which includes video-based safety, vehicle telematics, equipment monitoring, and site visibility applications — with over 90% of revenue coming from subscriptions. The company's competitive advantage lies in its integrated hardware-software ecosystem that creates high switching costs and network effects as customers deploy more devices across their operations.
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 — strongest in Financial Metrics and Valuation Metrics. 2 categories are tied.
Financial Metrics (TTM)
MSFT is the larger business by revenue, generating $305.5B annually — 200.9x IOT's $1.5B. MSFT is the more profitable business, keeping 39.0% of every revenue dollar as net income compared to IOT's -2.8%. On growth, IOT holds the edge at +29.2% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | IOTSamsara Inc. | MSFTMicrosoft Corpora… |
|---|---|---|
| RevenueTrailing 12 months | $1.5B | $305.5B |
| EBITDAEarnings before interest/tax | -$37M | $184.8B |
| Net IncomeAfter-tax profit | -$42M | $119.3B |
| Free Cash FlowCash after capex | $194M | $77.4B |
| Gross MarginGross profit ÷ Revenue | +76.9% | +68.6% |
| Operating MarginEBIT ÷ Revenue | -5.2% | +46.7% |
| Net MarginNet income ÷ Revenue | -2.8% | +39.0% |
| FCF MarginFCF ÷ Revenue | +12.8% | +25.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +29.2% | +16.7% |
| EPS Growth (YoY)Latest quarter vs prior year | -90.3% | +59.8% |
Valuation Metrics
| Metric | IOTSamsara Inc. | MSFTMicrosoft Corpora… |
|---|---|---|
| Market CapShares × price | $7.8B | $2.92T |
| Enterprise ValueMkt cap + debt − cash | $7.7B | $2.95T |
| Trailing P/EPrice ÷ TTM EPS | -103.21x | 28.79x |
| Forward P/EPrice ÷ next-FY EPS est. | 57.00x | 23.84x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.53x |
| EV / EBITDAEnterprise value multiple | — | 18.12x |
| Price / SalesMarket cap ÷ Revenue | 6.24x | 10.36x |
| Price / BookPrice ÷ Book value/share | 15.04x | 8.54x |
| Price / FCFMarket cap ÷ FCF | 69.96x | 40.74x |
Profitability & Efficiency
MSFT delivers a 30.5% return on equity — every $100 of shareholder capital generates $31 in annual profit, vs $-3 for IOT. IOT carries lower financial leverage with a 0.08x debt-to-equity ratio, signaling a more conservative balance sheet compared to MSFT's 0.18x. On the Piotroski fundamental quality scale (0–9), IOT scores 7/9 vs MSFT's 6/9, reflecting strong financial health.
| Metric | IOTSamsara Inc. | MSFTMicrosoft Corpora… |
|---|---|---|
| ROE (TTM)Return on equity | -3.2% | +30.5% |
| ROA (TTM)Return on assets | -1.8% | +17.9% |
| ROICReturn on invested capital | -15.8% | +27.9% |
| ROCEReturn on capital employed | -15.8% | +29.7% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 6 |
| Debt / EquityFinancial leverage | 0.08x | 0.18x |
| Net DebtTotal debt minus cash | -$147M | $30.3B |
| Cash & Equiv.Liquid assets | $228M | $30.2B |
| Total DebtShort + long-term debt | $80M | $60.6B |
| Interest CoverageEBIT ÷ Interest expense | — | 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 $11,700 for IOT. Over the past 12 months, MSFT leads with a -0.2% total return vs IOT's -39.4%. The 3-year compound annual growth rate (CAGR) favors IOT at 20.2% vs MSFT's 17.3% — a key indicator of consistent wealth creation.
| Metric | IOTSamsara Inc. | MSFTMicrosoft Corpora… |
|---|---|---|
| YTD ReturnYear-to-date | -14.8% | -16.8% |
| 1-Year ReturnPast 12 months | -39.4% | -0.2% |
| 3-Year ReturnCumulative with dividends | +73.5% | +61.3% |
| 5-Year ReturnCumulative with dividends | +17.0% | +71.9% |
| 10-Year ReturnCumulative with dividends | +17.0% | +718.2% |
| CAGR (3Y)Annualised 3-year return | +20.2% | +17.3% |
Risk & Volatility
MSFT is the less volatile stock with a 0.88 beta — it tends to amplify market swings less than IOT's 1.49 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. MSFT currently trades 70.7% from its 52-week high vs IOT's 59.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | IOTSamsara Inc. | MSFTMicrosoft Corpora… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.49x | 0.88x |
| 52-Week HighHighest price in past year | $48.66 | $555.45 |
| 52-Week LowLowest price in past year | $23.38 | $344.79 |
| % of 52W HighCurrent price vs 52-week peak | +59.4% | +70.7% |
| RSI (14)Momentum oscillator 0–100 | 52.1 | 39.8 |
| Avg Volume (50D)Average daily shares traded | 6.4M | 28.4M |
Analyst Outlook
Wall Street rates IOT as "Buy" and MSFT as "Buy". Consensus price targets imply 57.2% upside for IOT (target: $45) vs 48.6% for MSFT (target: $584). MSFT is the only dividend payer here at 0.82% yield — a key consideration for income-focused portfolios.
| Metric | IOTSamsara Inc. | MSFTMicrosoft Corpora… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $45.42 | $583.67 |
| # AnalystsCovering analysts | 17 | 78 |
| Dividend YieldAnnual dividend ÷ price | — | +0.8% |
| Dividend StreakConsecutive years of raises | — | 19 |
| Dividend / ShareAnnual DPS | — | $3.23 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.6% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Dec 21 | Feb 26 | Change |
|---|---|---|---|
| Samsara Inc. (IOT) | 100 | 106.92 | +6.9% |
| Microsoft Corporati… (MSFT) | 100 | 126.47 | +26.5% |
Microsoft Corporati… (MSFT) returned +72% over 5 years vs Samsara Inc. (IOT)'s +17%. 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 |
|---|---|---|---|
| Samsara Inc. (IOT) | $120M | $1.2B | +942.2% |
| 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 |
|---|---|---|---|
| Samsara Inc. (IOT) | -187.9% | -12.4% | +93.4% |
| 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 |
|---|---|---|---|
| Microsoft Corporati… (MSFT) | 26.3 | 35.5 | +35.0% |
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 |
|---|---|---|---|
| Samsara Inc. (IOT) | -0.45 | -0.28 | +37.8% |
| 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
Samsara Inc. generated $111M FCF in 2025 (+155% vs 2021). Microsoft Corporation generated $72B FCF in 2025 (+28% vs 2021).
IOT vs MSFT: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is IOT or MSFT a better buy right now?
Microsoft Corporation (MSFT) offers the better valuation at 28.8x trailing P/E (23.8x forward), making it the more compelling value choice. Analysts rate Samsara Inc. (IOT) a "Buy" — based on 17 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 — IOT or MSFT?
On forward P/E, Microsoft Corporation is actually cheaper at 23.8x.
03Which is the better long-term investment — IOT or MSFT?
Over the past 5 years, Microsoft Corporation (MSFT) delivered a total return of +71.9%, compared to +17.0% for Samsara Inc. (IOT). 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 IOT's +17.0%. 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 — IOT or MSFT?
By beta (market sensitivity over 5 years), Microsoft Corporation (MSFT) is the lower-risk stock at 0.88β versus Samsara Inc.'s 1.49β — meaning IOT is approximately 69% more volatile than MSFT relative to the S&P 500. On balance sheet safety, Samsara Inc. (IOT) carries a lower debt/equity ratio of 8% versus 18% for Microsoft Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — IOT or MSFT?
Microsoft Corporation (MSFT) is the more profitable company, earning 36.1% net margin versus -12.4% for Samsara 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 -15.2% for IOT. At the gross margin level — before operating expenses — IOT leads at 76.1%, 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 IOT or MSFT more undervalued right now?
On forward earnings alone, Microsoft Corporation (MSFT) trades at 23.8x forward P/E versus 57.0x for Samsara Inc. — 33.2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for IOT: 57.2% to $45.42.
07Which pays a better dividend — IOT or MSFT?
In this comparison, MSFT (0.8% yield) pays a dividend. IOT does not pay a meaningful dividend and should not be held primarily for income.
08Is IOT 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%, IOT: +17.0%), 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 IOT 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 IOT 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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