American Express Company (AXP) vs Microsoft Corporation (MSFT)
A side-by-side comparison of American Express Company 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: AXP is classified in Financial Services; MSFT is classified in Technology. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
AXP
American Express Company
$336.63Financial ServicesDelayed quote: Jul 28, 2026, 4:00 PM EDT
MSFT
Microsoft Corporation
$393.35TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT
Total return — AXP vs MSFT
growth of $100 · dividends reinvested · last 30yAXP +3657.2%MSFT +7530.9%MSFT compounded faster
AXP MSFT
AXP vs MSFT: by the numbers
- •MSFT is the larger company ($2.92T vs $229.69B market cap).
- •MSFT trades at the lower trailing earnings multiple (23.16 vs 28.05 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (39.34% vs 10.77% net margin).
- •MSFT grew revenue faster over the past five years (14.75% vs 14.35% CAGR).
- •AXP pays the higher dividend yield (1.02% vs 0.91%).
Metrics side by side
Valuation
| Metric | AXP | MSFT |
|---|---|---|
| P/E ratio | 28.05 | 23.16 |
| Forward P/E | 18.99 | 22.87 |
| P/S ratio | 2.94 | 9.10 |
| P/B ratio | 0.74 | 6.99 |
| PEG ratio | 2.46 | 2.34 |
| EV / EBITDA | N/A | 15.53 |
| FCF yield | N/A | 2.52% |
Profitability
| Metric | AXP | MSFT |
|---|---|---|
| Gross margin | 83.11% | 68.31% |
| Operating margin | 17.14% | 46.80% |
| Net margin | 10.77% | 39.34% |
| ROE | 2.71% | 30.22% |
| ROIC | 8.29% | 21.63% |
Dividends
| Metric | AXP | MSFT |
|---|---|---|
| Dividend yield | 1.02% | 0.91% |
| Payout ratio | 22.13% | 25.99% |
Growth (annualized)
| Metric | AXP | MSFT |
|---|---|---|
| Revenue CAGR (5Y) | 14.35% | 14.75% |
| EPS CAGR (5Y) | 32.53% | 18.68% |
| FCF CAGR (5Y) | N/A | 6.27% |
| Total return CAGR (5Y) | 15.82% | 7.19% |
Frequently asked
- Which has the lower trailing P/E, AXP or MSFT?
- MSFT has the lower trailing P/E: AXP trades at 28.05 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, AXP or MSFT?
- Over the past five years, MSFT grew revenue faster — AXP at a 14.35% CAGR versus MSFT at 14.75%.
- Does AXP or MSFT pay a bigger dividend?
- AXP yields 1.02% and MSFT yields 0.91% based on trailing dividends and the latest price.
- Is AXP or MSFT more profitable?
- MSFT runs the higher net margin — AXP at 10.77% versus MSFT at 39.34%.
- How have AXP and MSFT total returns compared?
- Over the past 10 years, AXP delivered 19.43% and MSFT delivered 22.86% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
American Express P/E ratioMicrosoft P/E ratioAmerican Express dividend yieldMicrosoft dividend yieldAmerican Express ROEMicrosoft ROEAmerican Express operating marginMicrosoft operating marginAmerican Express revenue growthMicrosoft revenue growthAmerican Express free cash flowMicrosoft free cash flow
American Express & Microsoft appear in these rankings
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.