Software - Infrastructure
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PATH vs MSFT
Revenue, margins, valuation, and 5-year total return — side by side.
Software - Infrastructure
PATH vs MSFT — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Software - Infrastructure | Software - Infrastructure |
| Market Cap | $5.88B | $3.07T |
| Revenue (TTM) | $1.61B | $318.27B |
| Net Income (TTM) | $282M | $125.22B |
| Gross Margin | 83.2% | 68.3% |
| Operating Margin | 3.5% | 46.8% |
| Forward P/E | 15.6x | 24.9x |
| Total Debt | $71M | $112.18B |
| Cash & Equiv. | $871M | $30.24B |
PATH vs MSFT — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | Apr 21 | May 26 | Return |
|---|---|---|---|
| UiPath Inc. (PATH) | 100 | 14.6 | -85.4% |
| Microsoft Corporati… (MSFT) | 100 | 164.1 | +64.1% |
Price return only. Dividends and distributions are not included.
Quick Verdict: PATH vs MSFT
Each card shows where this stock fits in a portfolio — not just who wins on paper.
PATH is the clearest fit if your priority is growth exposure and sleep-well-at-night.
- Rev growth 12.7%, EPS growth 5.0%, 3Y rev CAGR 15.0%
- Lower volatility, beta 1.34, Low D/E 3.4%, current ratio 2.48x
- Lower P/E (15.6x vs 24.9x)
MSFT carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 19 yrs, beta 0.89, yield 0.8%
- 7.7% 10Y total return vs PATH's -84.8%
- Beta 0.89, yield 0.8%, current ratio 1.35x
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 14.9% revenue growth vs PATH's 12.7% | |
| Value | Lower P/E (15.6x vs 24.9x) | |
| Quality / Margins | 39.3% margin vs PATH's 17.5% | |
| Stability / Safety | Beta 0.89 vs PATH's 1.34 | |
| Dividends | 0.8% yield; 19-year raise streak; the other pay no meaningful dividend | |
| Momentum (1Y) | -3.7% vs PATH's -11.2% | |
| Efficiency (ROA) | 19.2% ROA vs PATH's 10.0%, ROIC 24.9% vs 3.9% |
PATH vs MSFT — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
PATH vs MSFT — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
MSFT leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
MSFT is the larger business by revenue, generating $318.3B annually — 197.6x PATH's $1.6B. MSFT is the more profitable business, keeping 39.3% of every revenue dollar as net income compared to PATH's 17.5%. On growth, MSFT holds the edge at +18.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $1.6B | $318.3B |
| EBITDAEarnings before interest/tax | $74M | $192.6B |
| Net IncomeAfter-tax profit | $282M | $125.2B |
| Free Cash FlowCash after capex | $352M | $72.9B |
| Gross MarginGross profit ÷ Revenue | +83.2% | +68.3% |
| Operating MarginEBIT ÷ Revenue | +3.5% | +46.8% |
| Net MarginNet income ÷ Revenue | +17.5% | +39.3% |
| FCF MarginFCF ÷ Revenue | +21.9% | +22.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +13.6% | +18.3% |
| EPS Growth (YoY)Latest quarter vs prior year | +111.1% | +23.4% |
Valuation Metrics
PATH leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
At 20.2x trailing earnings, PATH trades at a 33% valuation discount to MSFT's 30.3x P/E. On an enterprise value basis, MSFT's 19.4x EV/EBITDA is more attractive than PATH's 65.2x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $5.9B | $3.07T |
| Enterprise ValueMkt cap + debt − cash | $5.1B | $3.16T |
| Trailing P/EPrice ÷ TTM EPS | 20.19x | 30.34x |
| Forward P/EPrice ÷ next-FY EPS est. | 15.59x | 24.91x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.61x |
| EV / EBITDAEnterprise value multiple | 65.18x | 19.40x |
| Price / SalesMarket cap ÷ Revenue | 3.65x | 10.91x |
| Price / BookPrice ÷ Book value/share | 2.75x | 8.99x |
| Price / FCFMarket cap ÷ FCF | 16.70x | 42.93x |
Profitability & Efficiency
Evenly matched — PATH and MSFT each lead in 4 of 8 comparable metrics.
Profitability & Efficiency
MSFT delivers a 33.1% return on equity — every $100 of shareholder capital generates $33 in annual profit, vs $15 for PATH. PATH carries lower financial leverage with a 0.03x debt-to-equity ratio, signaling a more conservative balance sheet compared to MSFT's 0.33x. On the Piotroski fundamental quality scale (0–9), PATH scores 8/9 vs MSFT's 6/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +15.3% | +33.1% |
| ROA (TTM)Return on assets | +10.0% | +19.2% |
| ROICReturn on invested capital | +3.9% | +24.9% |
| ROCEReturn on capital employed | +2.8% | +29.7% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 6 |
| Debt / EquityFinancial leverage | 0.03x | 0.33x |
| Net DebtTotal debt minus cash | -$800M | $81.9B |
| Cash & Equiv.Liquid assets | $871M | $30.2B |
| Total DebtShort + long-term debt | $71M | $112.2B |
| Interest CoverageEBIT ÷ Interest expense | — | 55.65x |
Total Returns (Dividends Reinvested)
MSFT leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in MSFT five years ago would be worth $17,152 today (with dividends reinvested), compared to $1,515 for PATH. Over the past 12 months, MSFT leads with a -3.7% total return vs PATH's -11.2%. The 3-year compound annual growth rate (CAGR) favors MSFT at 11.1% vs PATH's -7.8% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -33.9% | -12.3% |
| 1-Year ReturnPast 12 months | -11.2% | -3.7% |
| 3-Year ReturnCumulative with dividends | -21.7% | +37.2% |
| 5-Year ReturnCumulative with dividends | -84.8% | +71.5% |
| 10-Year ReturnCumulative with dividends | -84.8% | +768.1% |
| CAGR (3Y)Annualised 3-year return | -7.8% | +11.1% |
Risk & Volatility
MSFT leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
MSFT is the less volatile stock with a 0.89 beta — it tends to amplify market swings less than PATH's 1.34 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. MSFT currently trades 74.5% from its 52-week high vs PATH's 52.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.34x | 0.89x |
| 52-Week HighHighest price in past year | $19.84 | $555.45 |
| 52-Week LowLowest price in past year | $9.28 | $356.28 |
| % of 52W HighCurrent price vs 52-week peak | +52.9% | +74.5% |
| RSI (14)Momentum oscillator 0–100 | 50.0 | 52.6 |
| Avg Volume (50D)Average daily shares traded | 30.9M | 32.8M |
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates PATH as "Hold" and MSFT as "Buy". Consensus price targets imply 50.7% upside for PATH (target: $16) vs 33.3% for MSFT (target: $552). MSFT is the only dividend payer here at 0.78% yield — a key consideration for income-focused portfolios.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $15.82 | $551.75 |
| # AnalystsCovering analysts | 24 | 81 |
| 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% |
MSFT leads in 3 of 6 categories (Income & Cash Flow, Total Returns). PATH leads in 1 (Valuation Metrics). 1 tied.
PATH vs MSFT: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is PATH or MSFT a better buy right now?
For growth investors, Microsoft Corporation (MSFT) is the stronger pick with 14.
9% revenue growth year-over-year, versus 12. 7% for UiPath Inc. (PATH). UiPath Inc. (PATH) offers the better valuation at 20. 2x trailing P/E (15. 6x forward), making it the more compelling value choice. Analysts rate Microsoft Corporation (MSFT) a "Buy" — based on 81 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 — PATH or MSFT?
On trailing P/E, UiPath Inc.
(PATH) is the cheapest at 20. 2x versus Microsoft Corporation at 30. 3x. On forward P/E, UiPath Inc. is actually cheaper at 15. 6x.
03Which is the better long-term investment — PATH or MSFT?
Over the past 5 years, Microsoft Corporation (MSFT) delivered a total return of +71.
5%, compared to -84. 8% for UiPath Inc. (PATH). Over 10 years, the gap is even starker: MSFT returned +768. 1% versus PATH's -84. 8%. 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 — PATH or MSFT?
By beta (market sensitivity over 5 years), Microsoft Corporation (MSFT) is the lower-risk stock at 0.
89β versus UiPath Inc. 's 1. 34β — meaning PATH is approximately 51% more volatile than MSFT relative to the S&P 500. On balance sheet safety, UiPath Inc. (PATH) carries a lower debt/equity ratio of 3% versus 33% for Microsoft Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — PATH or MSFT?
By revenue growth (latest reported year), Microsoft Corporation (MSFT) is pulling ahead at 14.
9% versus 12. 7% for UiPath Inc. (PATH). On earnings-per-share growth, the picture is similar: UiPath Inc. grew EPS 500. 0% year-over-year, compared to 15. 6% for Microsoft Corporation. Over a 3-year CAGR, PATH leads at 15. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — PATH or MSFT?
Microsoft Corporation (MSFT) is the more profitable company, earning 36.
1% net margin versus 17. 5% for UiPath 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 3. 8% for PATH. At the gross margin level — before operating expenses — PATH leads at 83. 2%, 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.
07Is PATH or MSFT more undervalued right now?
On forward earnings alone, UiPath Inc.
(PATH) trades at 15. 6x forward P/E versus 24. 9x for Microsoft Corporation — 9. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PATH: 50. 7% to $15. 82.
08Which pays a better dividend — PATH or MSFT?
In this comparison, MSFT (0.
8% yield) pays a dividend. PATH does not pay a meaningful dividend and should not be held primarily for income.
09Is PATH 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.
89), 0. 8% yield, +768. 1% 10Y return). Both have compounded well over 10 years (MSFT: +768. 1%, PATH: -84. 8%), 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.
10What are the main differences between PATH 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 PATH 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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