Bank of America Corporation (BAC) vs Microsoft Corporation (MSFT)
A side-by-side comparison of Bank of America Corporation 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: BAC is classified in Financial Services; MSFT is classified in Technology. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
BAC
Bank of America Corporation
$62.62Financial ServicesDelayed quote: Jul 28, 2026, 4:00 PM EDT
MSFT
Microsoft Corporation
$393.35TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT
Total return — BAC vs MSFT
growth of $100 · dividends reinvested · last 30yBAC +539.7%MSFT +7530.9%MSFT compounded faster
Log scale — wide-divergence pair
BAC MSFT
BAC vs MSFT: by the numbers
- •MSFT is the larger company ($2.92T vs $444.39B market cap).
- •BAC trades at the lower trailing earnings multiple (14.32 vs 23.16 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (39.34% vs 18.95% net margin).
- •BAC pays the higher dividend yield (1.80% vs 0.91%).
Metrics side by side
Valuation
| Metric | BAC | MSFT |
|---|---|---|
| P/E ratio | 14.32 | 23.16 |
| Forward P/E | 13.44 | 22.87 |
| P/S ratio | 2.55 | 9.10 |
| P/B ratio | 1.51 | 6.99 |
| PEG ratio | 0.73 | 2.34 |
| EV / EBITDA | N/A | 15.53 |
| FCF yield | N/A | 2.52% |
Profitability
| Metric | BAC | MSFT |
|---|---|---|
| Gross margin | 56.08% | 68.31% |
| Operating margin | 24.70% | 46.80% |
| Net margin | 18.95% | 39.34% |
| ROE | 11.18% | 30.22% |
| ROIC | 3.39% | 21.63% |
Dividends
| Metric | BAC | MSFT |
|---|---|---|
| Dividend yield | 1.80% | 0.91% |
| Payout ratio | 28.87% | 25.99% |
Growth (annualized)
| Metric | BAC | MSFT |
|---|---|---|
| Revenue CAGR (5Y) | 14.65% | 14.75% |
| EPS CAGR (5Y) | 15.60% | 18.68% |
| FCF CAGR (5Y) | N/A | 6.27% |
| Total return CAGR (5Y) | 13.03% | 7.19% |
Frequently asked
- Which has the lower trailing P/E, BAC or MSFT?
- BAC has the lower trailing P/E: BAC trades at 14.32 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, BAC or MSFT?
- Over the past five years, MSFT grew revenue faster — BAC at a 14.65% CAGR versus MSFT at 14.75%.
- Does BAC or MSFT pay a bigger dividend?
- BAC yields 1.80% and MSFT yields 0.91% based on trailing dividends and the latest price.
- Is BAC or MSFT more profitable?
- MSFT runs the higher net margin — BAC at 18.95% versus MSFT at 39.34%.
- How have BAC and MSFT total returns compared?
- Over the past 10 years, BAC delivered 18.14% and MSFT delivered 22.86% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Bank of America P/E ratioMicrosoft P/E ratioBank of America dividend yieldMicrosoft dividend yieldBank of America ROEMicrosoft ROEBank of America operating marginMicrosoft operating marginBank of America revenue growthMicrosoft revenue growthBank of America free cash flowMicrosoft free cash flow
Bank of America & Microsoft appear in these rankings
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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.