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 September 10, 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.
$256.78Consumer CyclicalDelayed quote: Sep 11, 2026, 4:00 PM EDT
MSFT
Microsoft Corporation
$495.63TechnologyDelayed quote: Sep 11, 2026, 4:00 PM EDT
Total return — AMZN vs MSFT
growth of $100 · dividends reinvested · last 10yAMZN +562.0% (+20.8%/yr)MSFT +861.8% (+25.4%/yr)MSFT compounded faster over this window
AMZN MSFT
AMZN vs MSFT: by the numbers
- •MSFT is the larger company ($3.68T vs $2.76T market cap).
- •AMZN trades at the lower trailing earnings multiple (20.66 vs 27.61 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (40.31% vs 17.44% net margin).
- •MSFT grew revenue faster over the past five years (14.57% vs 11.84% CAGR).
- •MSFT pays a dividend (0.74% yield), while AMZN has no payments in the available dividend history.
Metrics side by side
Valuation
| Metric | AMZN | MSFT |
|---|---|---|
| P/E ratio | 20.66 | 27.61 |
| Forward P/E | 20.20 | 25.13 |
| P/S ratio | 3.56 | 11.09 |
| P/B ratio | 5.01 | 8.32 |
| EV / EBITDA | 17.21 | 19.55 |
| FCF yield | N/A | 1.82% |
Profitability
| Metric | AMZN | MSFT |
|---|---|---|
| Gross margin | 50.77% | 67.94% |
| Operating margin | 12.08% | 46.78% |
| Net margin | 17.44% | 40.31% |
| ROE | 24.52% | 30.23% |
| ROIC | 8.48% | 20.90% |
Dividends
| Metric | AMZN | MSFT |
|---|---|---|
| Dividend yield | N/A | 0.74% |
| Payout ratio | N/A | 20.28% |
Growth (annualized)
| Metric | AMZN | MSFT |
|---|---|---|
| Revenue CAGR (5Y) | 11.84% | 14.57% |
| EPS CAGR (5Y) | 27.90% | 17.26% |
| FCF CAGR (5Y) | -21.57% | 3.60% |
| Total return CAGR (5Y) | 7.75% | 11.66% |
Frequently asked
- Which has the lower trailing P/E, AMZN or MSFT?
- AMZN has the lower trailing P/E: AMZN trades at 20.66 and MSFT at 27.61. 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 11.84% CAGR versus MSFT at 14.57%.
- Does AMZN or MSFT pay a bigger dividend?
- MSFT pays a dividend (0.74% 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 17.44% versus MSFT at 40.31%.
- How have AMZN and MSFT total returns compared?
- Over the past 10 years, AMZN delivered 20.81% and MSFT delivered 25.72% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Amazon.com P/E ratioMicrosoft P/E ratioMicrosoft 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 September 10, 2026.