Berkshire Hathaway Inc. (BRK.B) vs Microsoft Corporation (MSFT)
A side-by-side comparison of Berkshire Hathaway Inc. 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: BRK.B is classified in Financial Services; MSFT is classified in Technology. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
BRK.B
Berkshire Hathaway Inc.
$512.37Financial ServicesDelayed quote: Jul 28, 2026, 4:00 PM EDT
MSFT
Microsoft Corporation
$393.35TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT
Total return — BRK.B vs MSFT
growth of $100 · dividends reinvested · last 30yBRK.B +2314.3%MSFT +7530.9%MSFT compounded faster
BRK.B MSFT
BRK.B vs MSFT: by the numbers
- •MSFT is the larger company ($2.92T vs $1.11T market cap).
- •BRK.B trades at the lower trailing earnings multiple (14.80 vs 23.16 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (39.34% vs 19.31% net margin).
- •MSFT grew revenue faster over the past five years (14.75% vs 8.57% CAGR).
- •MSFT pays a dividend (0.91% yield), while BRK.B has no payments in the available dividend history.
Metrics side by side
Valuation
| Metric | BRK.B | MSFT |
|---|---|---|
| P/E ratio | 14.80 | 23.16 |
| Forward P/E | 23.89 | 22.87 |
| P/S ratio | 2.86 | 9.10 |
| P/B ratio | 1.47 | 6.99 |
| PEG ratio | 1.26 | 2.34 |
| EV / EBITDA | N/A | 15.53 |
| FCF yield | N/A | 2.52% |
Profitability
| Metric | BRK.B | MSFT |
|---|---|---|
| Gross margin | 25.14% | 68.31% |
| Operating margin | 16.06% | 46.80% |
| Net margin | 19.31% | 39.34% |
| ROE | 9.97% | 30.22% |
| ROIC | 4.12% | 21.63% |
Dividends
| Metric | BRK.B | MSFT |
|---|---|---|
| Dividend yield | N/A | 0.91% |
| Payout ratio | N/A | 25.99% |
Growth (annualized)
| Metric | BRK.B | MSFT |
|---|---|---|
| Revenue CAGR (5Y) | 8.57% | 14.75% |
| EPS CAGR (5Y) | 11.79% | 18.68% |
| FCF CAGR (5Y) | N/A | 6.27% |
| Total return CAGR (5Y) | 12.93% | 7.19% |
Frequently asked
- Which has the lower trailing P/E, BRK.B or MSFT?
- BRK.B has the lower trailing P/E: BRK.B trades at 14.80 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, BRK.B or MSFT?
- Over the past five years, MSFT grew revenue faster — BRK.B at a 8.57% CAGR versus MSFT at 14.75%.
- Does BRK.B or MSFT pay a bigger dividend?
- MSFT pays a dividend (0.91% yield), while BRK.B has no payments in the available dividend history.
- Is BRK.B or MSFT more profitable?
- MSFT runs the higher net margin — BRK.B at 19.31% versus MSFT at 39.34%.
- How have BRK.B and MSFT total returns compared?
- Over the past 10 years, BRK.B delivered 13.47% and MSFT delivered 22.86% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Berkshire Hathaway P/E ratioMicrosoft P/E ratioBerkshire Hathaway dividend yieldMicrosoft dividend yieldBerkshire Hathaway ROEMicrosoft ROEBerkshire Hathaway operating marginMicrosoft operating marginBerkshire Hathaway revenue growthMicrosoft revenue growthBerkshire Hathaway free cash flowMicrosoft free cash flow
Berkshire Hathaway & 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.