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 September 10, 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
$109.30Consumer CyclicalDelayed quote: Sep 11, 2026, 4:01 PM EDT
MSFT
Microsoft Corporation
$495.63TechnologyDelayed quote: Sep 11, 2026, 4:00 PM EDT
Total return — BABA vs MSFT
growth of $100 · dividends reinvested · last 10yBABA +12.7% (+1.2%/yr)MSFT +861.8% (+25.4%/yr)MSFT compounded faster over this window
Log scale — wide-divergence pair
BABA MSFT
BABA vs MSFT: by the numbers
- •MSFT is the larger company ($3.68T vs $261.98B market cap).
- •BABA trades at the lower trailing earnings multiple (25.88 vs 27.61 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (40.31% vs 7.02% net margin).
- •MSFT grew revenue faster over the past five years (14.57% vs 5.11% CAGR).
- •BABA pays the higher dividend yield (0.97% vs 0.74%).
Metrics side by side
Valuation
| Metric | BABA | MSFT |
|---|---|---|
| P/E ratio | 25.88 | 27.61 |
| Forward P/E | N/A | 25.13 |
| P/S ratio | 1.74 | 11.09 |
| P/B ratio | 1.70 | 8.32 |
| EV / EBITDA | 31.14 | 19.55 |
| FCF yield | N/A | 1.82% |
Profitability
| Metric | BABA | MSFT |
|---|---|---|
| Gross margin | 38.12% | 67.94% |
| Operating margin | 4.23% | 46.78% |
| Net margin | 7.02% | 40.31% |
| ROE | 6.83% | 30.23% |
| ROIC | 1.99% | 20.90% |
Dividends
| Metric | BABA | MSFT |
|---|---|---|
| Dividend yield | 0.97% | 0.74% |
| Payout ratio | 24.87% | 20.28% |
Growth (annualized)
| Metric | BABA | MSFT |
|---|---|---|
| Revenue CAGR (5Y) | 5.11% | 14.57% |
| EPS CAGR (5Y) | -4.87% | 17.26% |
| FCF CAGR (5Y) | -62.38% | 3.60% |
| Total return CAGR (5Y) | -7.24% | 11.66% |
Frequently asked
- Which has the lower trailing P/E, BABA or MSFT?
- BABA has the lower trailing P/E: BABA trades at 25.88 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, BABA or MSFT?
- Over the past five years, MSFT grew revenue faster — BABA at a 5.11% CAGR versus MSFT at 14.57%.
- Does BABA or MSFT pay a bigger dividend?
- BABA yields 0.97% and MSFT yields 0.74% based on trailing dividends and the latest price.
- Is BABA or MSFT more profitable?
- MSFT runs the higher net margin — BABA at 7.02% versus MSFT at 40.31%.
- How have BABA and MSFT total returns compared?
- Over the past 10 years, BABA delivered 1.49% and MSFT delivered 25.72% 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 September 10, 2026.