Amazon.com, Inc. (AMZN) vs Microsoft Corporation (MSFT)
A side-by-side comparison of Amazon.com, 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.
Different business models: AMZN is classified in Consumer Cyclical; MSFT is classified in Technology. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
AMZN
Amazon.com, Inc.
$230.86Consumer CyclicalDelayed quote: Jul 28, 2026, 4:00 PM EDT
MSFT
Microsoft Corporation
$393.35TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT
Total return — AMZN vs MSFT
growth of $100 · dividends reinvested · last 29yAMZN +236212.4%MSFT +3793.5%AMZN compounded faster
Log scale — wide-divergence pair
AMZN MSFT
AMZN vs MSFT: by the numbers
- •MSFT is the larger company ($2.92T vs $2.48T market cap).
- •MSFT trades at the lower trailing earnings multiple (23.16 vs 27.68 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (39.34% vs 12.22% net margin).
- •MSFT grew revenue faster over the past five years (14.75% vs 12.13% CAGR).
- •MSFT pays a dividend (0.91% yield), while AMZN has no payments in the available dividend history.
Metrics side by side
Valuation
| Metric | AMZN | MSFT |
|---|---|---|
| P/E ratio | 27.68 | 23.16 |
| Forward P/E | 26.18 | 22.87 |
| P/S ratio | 3.39 | 9.10 |
| P/B ratio | 5.69 | 6.99 |
| PEG ratio | 1.10 | 2.34 |
| EV / EBITDA | 16.84 | 15.53 |
| FCF yield | N/A | 2.52% |
Profitability
| Metric | AMZN | MSFT |
|---|---|---|
| Gross margin | 50.60% | 68.31% |
| Operating margin | 11.50% | 46.80% |
| Net margin | 12.22% | 39.34% |
| ROE | 20.55% | 30.22% |
| ROIC | 10.70% | 21.63% |
Dividends
| Metric | AMZN | MSFT |
|---|---|---|
| Dividend yield | N/A | 0.91% |
| Payout ratio | N/A | 25.99% |
Growth (annualized)
| Metric | AMZN | MSFT |
|---|---|---|
| Revenue CAGR (5Y) | 12.13% | 14.75% |
| EPS CAGR (5Y) | 27.90% | 18.68% |
| FCF CAGR (5Y) | -21.57% | 6.27% |
| Total return CAGR (5Y) | 5.00% | 7.19% |
Frequently asked
- Which has the lower trailing P/E, AMZN or MSFT?
- MSFT has the lower trailing P/E: AMZN trades at 27.68 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, AMZN or MSFT?
- Over the past five years, MSFT grew revenue faster — AMZN at a 12.13% CAGR versus MSFT at 14.75%.
- Does AMZN or MSFT pay a bigger dividend?
- MSFT pays a dividend (0.91% yield), while AMZN has no payments in the available dividend history.
- Is AMZN or MSFT more profitable?
- MSFT runs the higher net margin — AMZN at 12.22% versus MSFT at 39.34%.
- How have AMZN and MSFT total returns compared?
- Over the past 10 years, AMZN delivered 20.18% and MSFT delivered 22.86% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Amazon.com P/E ratioMicrosoft P/E ratioAmazon.com dividend yieldMicrosoft dividend yieldAmazon.com ROEMicrosoft ROEAmazon.com operating marginMicrosoft operating marginAmazon.com revenue growthMicrosoft revenue growthAmazon.com free cash flowMicrosoft free cash flow
Amazon.com & Microsoft appear in these rankings
Highest ROE StocksHighest ROIC StocksHighest Operating Margin StocksHighest 10-Year Total Return Stocks
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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.