Comprehensive Stock Comparison
Compare Microsoft Corporation (MSFT) vs Nutanix, Inc. (NTNX) 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 | NTNX | 18.1% revenue growth vs MSFT's 14.9% |
| Value | NTNX | Lower P/E (21.1x vs 23.8x) |
| Quality / Margins | MSFT | 39.0% net margin vs NTNX's 9.9% |
| Stability / Safety | MSFT | Beta 0.88 vs NTNX's 1.25 |
| Dividends | MSFT | 0.8% yield; 19-year raise streak; NTNX pays no meaningful dividend |
| Momentum (1Y) | MSFT | -0.2% vs NTNX's -50.2% |
| Efficiency (ROA) | MSFT | 17.9% ROA vs NTNX's 8.2%, ROIC 27.9% vs 6.9% |
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
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.
Nutanix provides a hyperconverged infrastructure platform that combines computing, storage, and virtualization into a single software solution. It generates revenue primarily through subscription software licenses — about 90% of total revenue — with the remainder from hardware sales and support services. The company's key advantage is its software-defined architecture that simplifies data center management and enables seamless hybrid cloud operations.
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 2 of 6 categories (Total Returns, Risk & Volatility). NTNX leads in 1 (Valuation Metrics). 2 tied.
Financial Metrics (TTM)
MSFT is the larger business by revenue, generating $305.5B annually — 113.7x NTNX's $2.7B. MSFT is the more profitable business, keeping 39.0% of every revenue dollar as net income compared to NTNX's 9.9%. On growth, MSFT holds the edge at +16.7% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | MSFTMicrosoft Corpora… | NTNXNutanix, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $305.5B | $2.7B |
| EBITDAEarnings before interest/tax | $184.8B | $288M |
| Net IncomeAfter-tax profit | $119.3B | $267M |
| Free Cash FlowCash after capex | $77.4B | $777M |
| Gross MarginGross profit ÷ Revenue | +68.6% | +87.1% |
| Operating MarginEBIT ÷ Revenue | +46.7% | +8.0% |
| Net MarginNet income ÷ Revenue | +39.0% | +9.9% |
| FCF MarginFCF ÷ Revenue | +25.3% | +28.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +16.7% | +10.4% |
| EPS Growth (YoY)Latest quarter vs prior year | +59.8% | +89.5% |
Valuation Metrics
At 28.8x trailing earnings, MSFT trades at a 51% valuation discount to NTNX's 58.9x P/E. On an enterprise value basis, MSFT's 18.1x EV/EBITDA is more attractive than NTNX's 45.2x.
| Metric | MSFTMicrosoft Corpora… | NTNXNutanix, Inc. |
|---|---|---|
| Market CapShares × price | $2.92T | $10.4B |
| Enterprise ValueMkt cap + debt − cash | $2.95T | $11.1B |
| Trailing P/EPrice ÷ TTM EPS | 28.79x | 58.89x |
| Forward P/EPrice ÷ next-FY EPS est. | 23.84x | 21.13x |
| PEG RatioP/E ÷ EPS growth rate | 1.53x | — |
| EV / EBITDAEnterprise value multiple | 18.12x | 45.16x |
| Price / SalesMarket cap ÷ Revenue | 10.36x | 4.08x |
| Price / BookPrice ÷ Book value/share | 8.54x | — |
| Price / FCFMarket cap ÷ FCF | 40.74x | 13.81x |
Profitability & Efficiency
| Metric | MSFTMicrosoft Corpora… | NTNXNutanix, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +30.5% | — |
| ROA (TTM)Return on assets | +17.9% | +8.2% |
| ROICReturn on invested capital | +27.9% | +6.9% |
| ROCEReturn on capital employed | +29.7% | +12.5% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 6 |
| Debt / EquityFinancial leverage | 0.18x | — |
| Net DebtTotal debt minus cash | $30.3B | $713M |
| Cash & Equiv.Liquid assets | $30.2B | $770M |
| Total DebtShort + long-term debt | $60.6B | $1.5B |
| Interest CoverageEBIT ÷ Interest expense | 56.44x | 12.48x |
Total Returns (with DRIP)
A $10,000 investment in MSFT five years ago would be worth $17,186 today (with dividends reinvested), compared to $12,465 for NTNX. Over the past 12 months, MSFT leads with a -0.2% total return vs NTNX's -50.2%. The 3-year compound annual growth rate (CAGR) favors MSFT at 17.3% vs NTNX's 10.7% — a key indicator of consistent wealth creation.
| Metric | MSFTMicrosoft Corpora… | NTNXNutanix, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -16.8% | -24.3% |
| 1-Year ReturnPast 12 months | -0.2% | -50.2% |
| 3-Year ReturnCumulative with dividends | +61.3% | +35.5% |
| 5-Year ReturnCumulative with dividends | +71.9% | +24.6% |
| 10-Year ReturnCumulative with dividends | +718.2% | +3.5% |
| CAGR (3Y)Annualised 3-year return | +17.3% | +10.7% |
Risk & Volatility
MSFT is the less volatile stock with a 0.88 beta — it tends to amplify market swings less than NTNX's 1.25 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 NTNX's 45.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | MSFTMicrosoft Corpora… | NTNXNutanix, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.88x | 1.25x |
| 52-Week HighHighest price in past year | $555.45 | $83.36 |
| 52-Week LowLowest price in past year | $344.79 | $35.39 |
| % of 52W HighCurrent price vs 52-week peak | +70.7% | +45.9% |
| RSI (14)Momentum oscillator 0–100 | 39.8 | 43.7 |
| Avg Volume (50D)Average daily shares traded | 28.4M | 3.5M |
Analyst Outlook
Wall Street rates MSFT as "Buy" and NTNX as "Buy". Consensus price targets imply 58.2% upside for NTNX (target: $61) 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 | MSFTMicrosoft Corpora… | NTNXNutanix, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $583.67 | $60.55 |
| # AnalystsCovering analysts | 78 | 31 |
| Dividend YieldAnnual dividend ÷ price | +0.8% | — |
| Dividend StreakConsecutive years of raises | 19 | — |
| Dividend / ShareAnnual DPS | $3.23 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +0.6% | +3.0% |
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% |
| Nutanix, Inc. (NTNX) | 100 | 166.46 | +66.5% |
Microsoft Corporati… (MSFT) returned +72% over 5 years vs Nutanix, Inc. (NTNX)'s +25%. 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 |
|---|---|---|---|
| Microsoft Corporati… (MSFT) | $91.2B | $281.7B | +209.1% |
| Nutanix, Inc. (NTNX) | $503M | $2.5B | +404.1% |
Microsoft Corporation's revenue grew from $91.2B (2016) to $281.7B (2025) — a 13.4% CAGR. Nutanix, Inc.'s revenue grew from $503M (2016) to $2.5B (2025) — a 19.7% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Microsoft Corporati… (MSFT) | 22.5% | 36.1% | +60.4% |
| Nutanix, Inc. (NTNX) | -21.5% | 7.4% | +134.5% |
Microsoft Corporation's net margin went from 23% (2016) to 36% (2025). Nutanix, Inc.'s net margin went from -22% (2016) to 7% (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 |
|---|---|---|---|
| Microsoft Corporati… (MSFT) | 2.1 | 13.64 | +549.5% |
| Nutanix, Inc. (NTNX) | -0.79 | 0.65 | +182.3% |
Microsoft Corporation's EPS grew from $2.10 (2016) to $13.64 (2025) — a 23% CAGR. Nutanix, Inc.'s EPS grew from $-0.79 (2016) to $0.65 (2025).
Chart 6Free Cash Flow — 5 Years
Microsoft Corporation generated $72B FCF in 2025 (+28% vs 2021). Nutanix, Inc. generated $750M FCF in 2025 (+573% vs 2021).
MSFT vs NTNX: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is MSFT or NTNX 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 NTNX?
On trailing P/E, Microsoft Corporation (MSFT) is the cheapest at 28.8x versus Nutanix, Inc. at 58.9x. On forward P/E, Nutanix, Inc. is actually cheaper at 21.1x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — MSFT or NTNX?
Over the past 5 years, Microsoft Corporation (MSFT) delivered a total return of +71.9%, compared to +24.6% for Nutanix, Inc. (NTNX). 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 NTNX's +3.5%. 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 NTNX?
By beta (market sensitivity over 5 years), Microsoft Corporation (MSFT) is the lower-risk stock at 0.88β versus Nutanix, Inc.'s 1.25β — meaning NTNX is approximately 41% more volatile than MSFT relative to the S&P 500.
05Which has better profit margins — MSFT or NTNX?
Microsoft Corporation (MSFT) is the more profitable company, earning 36.1% net margin versus 7.4% for Nutanix, 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 6.8% for NTNX. At the gross margin level — before operating expenses — NTNX leads at 86.8%, 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 NTNX more undervalued right now?
On forward earnings alone, Nutanix, Inc. (NTNX) trades at 21.1x forward P/E versus 23.8x for Microsoft Corporation — 2.7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NTNX: 58.2% to $60.55.
07Which pays a better dividend — MSFT or NTNX?
In this comparison, MSFT (0.8% yield) pays a dividend. NTNX does not pay a meaningful dividend and should not be held primarily for income.
08Is MSFT or NTNX 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%, NTNX: +3.5%), 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 NTNX?
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 NTNX 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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