Applied Materials, Inc. (AMAT) vs Microsoft Corporation (MSFT)
A side-by-side comparison of Applied Materials, Inc. and Microsoft Corporation across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of July 28, 2026. Differences are shown without an overall score or investment verdict.
AMAT
Applied Materials, Inc.
$476.46TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT
MSFT
Microsoft Corporation
$393.35TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT
Total return — AMAT vs MSFT
growth of $100 · dividends reinvested · last 30yAMAT +24231.5%MSFT +7530.9%AMAT compounded faster
AMAT MSFT
AMAT vs MSFT: by the numbers
- •MSFT is the larger company ($2.92T vs $378.29B market cap).
- •MSFT trades at the lower trailing earnings multiple (23.16 vs 48.58 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (39.34% vs 29.31% net margin).
- •MSFT grew revenue faster over the past five years (14.75% vs 9.33% CAGR).
- •MSFT pays the higher dividend yield (0.91% vs 0.37%).
Metrics side by side
Valuation
| Metric | AMAT | MSFT |
|---|---|---|
| P/E ratio | 48.58 | 23.16 |
| Forward P/E | 42.09 | 22.87 |
| P/S ratio | 14.23 | 9.10 |
| P/B ratio | 17.27 | 6.99 |
| PEG ratio | 76.84 | 2.34 |
| EV / EBITDA | 45.66 | 15.53 |
| FCF yield | 1.44% | 2.52% |
Profitability
| Metric | AMAT | MSFT |
|---|---|---|
| Gross margin | 48.96% | 68.31% |
| Operating margin | 29.51% | 46.80% |
| Net margin | 29.31% | 39.34% |
| ROE | 35.58% | 30.22% |
| ROIC | 21.96% | 21.63% |
Dividends
| Metric | AMAT | MSFT |
|---|---|---|
| Dividend yield | 0.37% | 0.91% |
| Payout ratio | 21.93% | 25.99% |
Growth (annualized)
| Metric | AMAT | MSFT |
|---|---|---|
| Revenue CAGR (5Y) | 9.33% | 14.75% |
| EPS CAGR (5Y) | 17.13% | 18.68% |
| FCF CAGR (5Y) | 9.02% | 6.27% |
| Total return CAGR (5Y) | 31.94% | 7.19% |
Frequently asked
- Which has the lower trailing P/E, AMAT or MSFT?
- MSFT has the lower trailing P/E: AMAT trades at 48.58 and MSFT at 23.16. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, AMAT or MSFT?
- Over the past five years, MSFT grew revenue faster — AMAT at a 9.33% CAGR versus MSFT at 14.75%.
- Does AMAT or MSFT pay a bigger dividend?
- AMAT yields 0.37% and MSFT yields 0.91% based on trailing dividends and the latest price.
- Is AMAT or MSFT more profitable?
- MSFT runs the higher net margin — AMAT at 29.31% versus MSFT at 39.34%.
- How have AMAT and MSFT total returns compared?
- Over the past 10 years, AMAT delivered 35.87% and MSFT delivered 22.86% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Applied Materials P/E ratioMicrosoft P/E ratioApplied Materials dividend yieldMicrosoft dividend yieldApplied Materials ROEMicrosoft ROEApplied Materials operating marginMicrosoft operating marginApplied Materials revenue growthMicrosoft revenue growthApplied Materials free cash flowMicrosoft free cash flow
Applied Materials & Microsoft appear in these rankings
Highest ROE StocksHighest ROIC StocksHighest Operating Margin StocksHighest 10-Year Total Return Stocks
Related comparisons
Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified July 28, 2026.