Alibaba Group Holding Limited (BABA) vs Microsoft Corporation (MSFT)
MSFT leads on 9 of 15 compared metrics, though BABA is the cheaper stock.
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 June 13, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
BABA
Alibaba Group Holding Limited
$112.82Consumer Cyclical
MSFT
Microsoft Corporation
$390.74Technology
Total return — BABA vs MSFT
growth of $100 · last 12yBABA +20.2%MSFT +722.3%MSFT compounded faster
Log scale — wide-divergence pair
BABA MSFT
BABA vs MSFT: by the numbers
- •MSFT is the larger company ($2.90T vs $270.67B market cap).
- •BABA trades at the lower earnings multiple (18.22 vs 23.26 P/E).
- •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).
- •BABA pays the higher dividend yield (0.93% vs 0.91%).
Which is better, BABA or MSFT?
Metric tally: BABA 6 · MSFT 9It depends on what you're optimizing for:
ValueBABA(lower P/E)
GrowthMSFT(faster 5Y revenue CAGR)
IncomeBABA(higher dividend yield)
QualityMSFT(higher ROIC)
Valuation
| Metric | BABA | MSFT |
|---|---|---|
| P/E ratio | 18.22● | 23.26 |
| Forward P/E | — | 20.11 |
| P/S ratio | 1.87● | 9.14 |
| P/B ratio | 1.77● | 7.02 |
| PEG ratio | 0.23● | 2.34 |
| EV / EBITDA | 13.88● | 14.60 |
| FCF yield | — | 2.51% |
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 | 0.93%● | 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) | -10.73% | 9.56%● |
Frequently asked
- Which is better, BABA or MSFT?
- It depends on your goal. value: BABA (lower P/E); growth: MSFT (faster 5Y revenue CAGR); income: BABA (higher dividend yield); quality: MSFT (higher ROIC). Across all compared metrics, MSFT leads 9 to 6.
- Is BABA or MSFT cheaper?
- On trailing earnings, BABA is cheaper: BABA trades at a 18.22 P/E and MSFT at 23.26.
- 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 0.93% 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%.
- Which has been the better investment, BABA or MSFT?
- Over the past 10-year, MSFT delivered the higher annualized total return — BABA at 4.68% versus MSFT at 23.98%. 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 StocksBest 10-Year Total Return Stocks
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 June 13, 2026.