Comprehensive Stock Comparison
Compare Microsoft Corporation (MSFT) vs Apple Inc. (AAPL) 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 AAPL's 6.4% |
| Value | MSFT | Lower P/E (23.8x vs 31.1x), PEG 1.27 vs 1.74 |
| Quality / Margins | MSFT | 39.0% net margin vs AAPL's 27.0% |
| Stability / Safety | MSFT | Beta 0.88 vs AAPL's 1.28, lower leverage |
| Dividends | MSFT | 0.8% yield, 19-year raise streak, vs AAPL's 0.4% |
| Momentum (1Y) | AAPL | +9.7% vs MSFT's -0.2% |
| Efficiency (ROA) | AAPL | 31.1% ROA vs MSFT's 17.9%, ROIC 64.5% vs 27.9% |
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
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.
Apple is a technology giant that designs and sells premium consumer electronics — most famously the iPhone — along with related software and services. It generates revenue primarily from hardware sales (roughly 80% of total) and a fast-growing services segment (around 20%) that includes the App Store, subscriptions, and licensing. Its key competitive advantage is a powerful ecosystem that locks users into its hardware, software, and services through seamless integration and high switching costs.
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, Valuation Metrics). AAPL leads in 2 (Profitability & Efficiency, Total Returns). 1 tied.
Financial Metrics (TTM)
AAPL and MSFT operate at a comparable scale, with $435.6B and $305.5B in trailing revenue. MSFT is the more profitable business, keeping 39.0% of every revenue dollar as net income compared to AAPL's 27.0%.
| Metric | MSFTMicrosoft Corpora… | AAPLApple Inc. |
|---|---|---|
| RevenueTrailing 12 months | $305.5B | $435.6B |
| EBITDAEarnings before interest/tax | $184.8B | $152.9B |
| Net IncomeAfter-tax profit | $119.3B | $117.8B |
| Free Cash FlowCash after capex | $77.4B | $123.3B |
| Gross MarginGross profit ÷ Revenue | +68.6% | +47.3% |
| Operating MarginEBIT ÷ Revenue | +46.7% | +32.4% |
| Net MarginNet income ÷ Revenue | +39.0% | +27.0% |
| FCF MarginFCF ÷ Revenue | +25.3% | +28.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +16.7% | +15.7% |
| EPS Growth (YoY)Latest quarter vs prior year | +59.8% | +18.3% |
Valuation Metrics
At 28.8x trailing earnings, MSFT trades at a 19% valuation discount to AAPL's 35.4x P/E. Adjusting for growth (PEG ratio), MSFT offers better value at 1.53x vs AAPL's 1.98x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | MSFTMicrosoft Corpora… | AAPLApple Inc. |
|---|---|---|
| Market CapShares × price | $2.92T | $3.88T |
| Enterprise ValueMkt cap + debt − cash | $2.95T | $3.97T |
| Trailing P/EPrice ÷ TTM EPS | 28.79x | 35.41x |
| Forward P/EPrice ÷ next-FY EPS est. | 23.84x | 31.15x |
| PEG RatioP/E ÷ EPS growth rate | 1.53x | 1.98x |
| EV / EBITDAEnterprise value multiple | 18.12x | 27.45x |
| Price / SalesMarket cap ÷ Revenue | 10.36x | 9.33x |
| Price / BookPrice ÷ Book value/share | 8.54x | 53.76x |
| Price / FCFMarket cap ÷ FCF | 40.74x | 39.33x |
Profitability & Efficiency
AAPL delivers a 133.5% return on equity — every $100 of shareholder capital generates $134 in annual profit, vs $31 for MSFT. MSFT carries lower financial leverage with a 0.18x debt-to-equity ratio, signaling a more conservative balance sheet compared to AAPL's 1.67x. On the Piotroski fundamental quality scale (0–9), AAPL scores 7/9 vs MSFT's 6/9, reflecting strong financial health.
| Metric | MSFTMicrosoft Corpora… | AAPLApple Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +30.5% | +133.5% |
| ROA (TTM)Return on assets | +17.9% | +31.1% |
| ROICReturn on invested capital | +27.9% | +64.5% |
| ROCEReturn on capital employed | +29.7% | +69.6% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | 0.18x | 1.67x |
| Net DebtTotal debt minus cash | $30.3B | $89.7B |
| Cash & Equiv.Liquid assets | $30.2B | $33.5B |
| Total DebtShort + long-term debt | $60.6B | $123.3B |
| Interest CoverageEBIT ÷ Interest expense | 56.44x | — |
Total Returns (with DRIP)
A $10,000 investment in AAPL five years ago would be worth $21,049 today (with dividends reinvested), compared to $17,186 for MSFT. Over the past 12 months, AAPL leads with a +9.7% total return vs MSFT's -0.2%. The 3-year compound annual growth rate (CAGR) favors AAPL at 21.9% vs MSFT's 17.3% — a key indicator of consistent wealth creation.
| Metric | MSFTMicrosoft Corpora… | AAPLApple Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -16.8% | -2.4% |
| 1-Year ReturnPast 12 months | -0.2% | +9.7% |
| 3-Year ReturnCumulative with dividends | +61.3% | +81.2% |
| 5-Year ReturnCumulative with dividends | +71.9% | +110.5% |
| 10-Year ReturnCumulative with dividends | +718.2% | +1027.4% |
| CAGR (3Y)Annualised 3-year return | +17.3% | +21.9% |
Risk & Volatility
MSFT is the less volatile stock with a 0.88 beta — it tends to amplify market swings less than AAPL's 1.28 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. AAPL currently trades 91.5% from its 52-week high vs MSFT's 70.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | MSFTMicrosoft Corpora… | AAPLApple Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.88x | 1.28x |
| 52-Week HighHighest price in past year | $555.45 | $288.61 |
| 52-Week LowLowest price in past year | $344.79 | $169.21 |
| % of 52W HighCurrent price vs 52-week peak | +70.7% | +91.5% |
| RSI (14)Momentum oscillator 0–100 | 39.8 | 57.5 |
| Avg Volume (50D)Average daily shares traded | 28.4M | 40.9M |
Analyst Outlook
Wall Street rates MSFT as "Buy" and AAPL as "Buy". Consensus price targets imply 48.6% upside for MSFT (target: $584) vs 14.7% for AAPL (target: $303). For income investors, MSFT offers the higher dividend yield at 0.82% vs AAPL's 0.39%.
| Metric | MSFTMicrosoft Corpora… | AAPLApple Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $583.67 | $303.11 |
| # AnalystsCovering analysts | 78 | 109 |
| Dividend YieldAnnual dividend ÷ price | +0.8% | +0.4% |
| Dividend StreakConsecutive years of raises | 19 | 14 |
| Dividend / ShareAnnual DPS | $3.23 | $1.03 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.6% | +2.3% |
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 |
|---|---|---|---|
| Microsoft Corporati… (MSFT) | 100 | 245.02 | +145.0% |
| Apple Inc. (AAPL) | 100 | 361.46 | +261.5% |
Apple Inc. (AAPL) returned +110% over 5 years vs Microsoft Corporati… (MSFT)'s +72%. A $10,000 investment in AAPL 5 years ago would be worth $21,049 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Microsoft Corporati… (MSFT) | $91.2B | $281.7B | +209.1% |
| Apple Inc. (AAPL) | $215.6B | $416.2B | +93.0% |
Microsoft Corporation's revenue grew from $91.2B (2016) to $281.7B (2025) — a 13.4% CAGR. Apple Inc.'s revenue grew from $215.6B (2016) to $416.2B (2025) — a 7.6% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Microsoft Corporati… (MSFT) | 22.5% | 36.1% | +60.4% |
| Apple Inc. (AAPL) | 21.2% | 26.9% | +27.0% |
Microsoft Corporation's net margin went from 23% (2016) to 36% (2025). Apple Inc.'s net margin went from 21% (2016) to 27% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Microsoft Corporati… (MSFT) | 26.3 | 35.5 | +35.0% |
| Apple Inc. (AAPL) | 18.4 | 36.4 | +97.8% |
Microsoft Corporation has traded in a 25x–48x P/E range over 9 years; current trailing P/E is ~29x. Apple Inc. has traded in a 13x–41x P/E range over 9 years; current trailing P/E is ~35x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Microsoft Corporati… (MSFT) | 2.1 | 13.64 | +549.5% |
| Apple Inc. (AAPL) | 2.08 | 7.46 | +258.7% |
Microsoft Corporation's EPS grew from $2.10 (2016) to $13.64 (2025) — a 23% CAGR. Apple Inc.'s EPS grew from $2.08 (2016) to $7.46 (2025) — a 15% CAGR.
Chart 6Free Cash Flow — 5 Years
Microsoft Corporation generated $72B FCF in 2025 (+28% vs 2021). Apple Inc. generated $99B FCF in 2025 (+6% vs 2021).
MSFT vs AAPL: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is MSFT or AAPL 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 Microsoft Corporation (MSFT) a "Buy" — based on 78 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 — MSFT or AAPL?
On trailing P/E, Microsoft Corporation (MSFT) is the cheapest at 28.8x versus Apple Inc. at 35.4x. On forward P/E, Microsoft Corporation is actually cheaper at 23.8x. 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 Apple Inc.'s 1.74x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — MSFT or AAPL?
Over the past 5 years, Apple Inc. (AAPL) delivered a total return of +110.5%, compared to +71.9% for Microsoft Corporation (MSFT). A $10,000 investment in AAPL five years ago would be worth approximately $21K today (assuming dividends reinvested). Over 10 years, the gap is even starker: AAPL returned +1027% versus MSFT's +718.2%. 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 — MSFT or AAPL?
By beta (market sensitivity over 5 years), Microsoft Corporation (MSFT) is the lower-risk stock at 0.88β versus Apple Inc.'s 1.28β — meaning AAPL is approximately 45% 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 167% for Apple Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — MSFT or AAPL?
Microsoft Corporation (MSFT) is the more profitable company, earning 36.1% net margin versus 26.9% for Apple 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 32.0% for AAPL. At the gross margin level — before operating expenses — MSFT leads at 68.8%, 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 MSFT or AAPL 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 Apple Inc.'s 1.74x. A PEG below 1.5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Microsoft Corporation (MSFT) trades at 23.8x forward P/E versus 31.1x for Apple Inc. — 7.3x 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 — MSFT or AAPL?
All stocks in this comparison pay dividends. Microsoft Corporation (MSFT) offers the highest yield at 0.8%, versus 0.4% for Apple Inc. (AAPL).
08Is MSFT or AAPL 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%, AAPL: +1027%), 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 MSFT and AAPL?
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 AAPL 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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