Alibaba Group Holding Limited (BABA) vs Microsoft Corporation (MSFT)
A side-by-side comparison of Alibaba Group Holding Limited 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: BABA is classified in Consumer Cyclical; MSFT is classified in Technology. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
BABA
Alibaba Group Holding Limited
$115.19Consumer CyclicalDelayed quote: Jul 28, 2026, 4:02 PM EDT
MSFT
Microsoft Corporation
$393.35TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT
Total return — BABA vs MSFT
growth of $100 · dividends reinvested · last 12yBABA +29.2%MSFT +897.9%MSFT compounded faster
Log scale — wide-divergence pair
BABA MSFT
BABA vs MSFT: by the numbers
- •MSFT is the larger company ($2.92T vs $276.10B market cap).
- •BABA trades at the lower trailing earnings multiple (18.57 vs 23.16 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (39.34% vs 10.09% net margin).
- •MSFT grew revenue faster over the past five years (14.75% vs 6.31% CAGR).
- •MSFT pays the higher dividend yield (0.91% vs 0.91%).
Metrics side by side
Valuation
| Metric | BABA | MSFT |
|---|---|---|
| P/E ratio | 18.57 | 23.16 |
| Forward P/E | N/A | 22.87 |
| P/S ratio | 1.90 | 9.10 |
| P/B ratio | 1.81 | 6.99 |
| PEG ratio | N/A | 2.34 |
| EV / EBITDA | 31.68 | 15.53 |
| FCF yield | N/A | 2.52% |
Profitability
| Metric | BABA | MSFT |
|---|---|---|
| Gross margin | 39.77% | 68.31% |
| Operating margin | 5.78% | 46.80% |
| Net margin | 10.09% | 39.34% |
| ROE | 9.58% | 30.22% |
| ROIC | 3.17% | 21.63% |
Dividends
| Metric | BABA | MSFT |
|---|---|---|
| Dividend yield | 0.91% | 0.91% |
| Payout ratio | 15.89% | 25.99% |
Growth (annualized)
| Metric | BABA | MSFT |
|---|---|---|
| Revenue CAGR (5Y) | 6.31% | 14.75% |
| EPS CAGR (5Y) | -4.87% | 18.68% |
| FCF CAGR (5Y) | -62.38% | 6.27% |
| Total return CAGR (5Y) | -8.99% | 7.19% |
Frequently asked
- Which has the lower trailing P/E, BABA or MSFT?
- BABA has the lower trailing P/E: BABA trades at 18.57 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, BABA or MSFT?
- Over the past five years, MSFT grew revenue faster — BABA at a 6.31% CAGR versus MSFT at 14.75%.
- Does BABA or MSFT pay a bigger dividend?
- BABA yields 0.91% and MSFT yields 0.91% based on trailing dividends and the latest price.
- Is BABA or MSFT more profitable?
- MSFT runs the higher net margin — BABA at 10.09% versus MSFT at 39.34%.
- How have BABA and MSFT total returns compared?
- Over the past 10 years, BABA delivered 3.94% and MSFT delivered 22.86% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Alibaba Group P/E ratioMicrosoft P/E ratioAlibaba Group dividend yieldMicrosoft dividend yieldAlibaba Group ROEMicrosoft ROEAlibaba Group operating marginMicrosoft operating marginAlibaba Group revenue growthMicrosoft revenue growthAlibaba Group free cash flowMicrosoft free cash flow
Alibaba Group & 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.