Costco Wholesale Corporation (COST) vs Microsoft Corporation (MSFT)
MSFT leads on 15 of 17 compared metrics.
A side-by-side comparison of Costco Wholesale Corporation and Microsoft Corporation across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 14, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
COST
Costco Wholesale Corporation
$982.35Consumer Defensive
MSFT
Microsoft Corporation
$390.74Technology
Total return — COST vs MSFT
growth of $100 · last 30yCOST +9597.4%MSFT +4981.1%COST compounded faster
COST MSFT
COST vs MSFT: by the numbers
- •MSFT is the larger company ($2.90T vs $435.65B market cap).
- •MSFT trades at the lower earnings multiple (23.26 vs 49.41 P/E).
- •MSFT converts more revenue to profit (39.34% vs 3.01% net margin).
- •MSFT grew revenue faster over the past five years (14.75% vs 9.48% CAGR).
- •MSFT pays the higher dividend yield (0.91% vs 0.55%).
Which is better, COST or MSFT?
Metric tally: COST 2 · MSFT 15It depends on what you're optimizing for:
ValueMSFT(lower P/E)
GrowthMSFT(faster 5Y revenue CAGR)
IncomeMSFT(higher dividend yield)
QualityMSFT(higher ROIC)
Valuation
| Metric | COST | MSFT |
|---|---|---|
| P/E ratio | 49.41 | 23.26● |
| Forward P/E | 43.40 | 20.12● |
| P/S ratio | 1.49● | 9.14 |
| P/B ratio | 13.03 | 7.02● |
| PEG ratio | 5.23 | 2.34● |
| EV / EBITDA | 29.43 | 14.60● |
| FCF yield | 2.02% | 2.51%● |
Profitability
| Metric | COST | MSFT |
|---|---|---|
| Gross margin | 12.88% | 68.31%● |
| Operating margin | 3.82% | 46.80%● |
| Net margin | 3.01% | 39.34%● |
| ROE | 26.38% | 30.22%● |
| ROIC | 19.44% | 21.63%● |
Dividends
| Metric | COST | MSFT |
|---|---|---|
| Dividend yield | 0.55% | 0.91%● |
| Payout ratio | 29.44% | 25.99% |
Growth (annualized)
| Metric | COST | MSFT |
|---|---|---|
| Revenue CAGR (5Y) | 9.48% | 14.75%● |
| EPS CAGR (5Y) | 15.04% | 18.68%● |
| FCF CAGR (5Y) | 4.95% | 6.27%● |
| Total return CAGR (5Y) | 21.56%● | 9.56% |
Frequently asked
- Which is better, COST or MSFT?
- It depends on your goal. value: MSFT (lower P/E); growth: MSFT (faster 5Y revenue CAGR); income: MSFT (higher dividend yield); quality: MSFT (higher ROIC). Across all compared metrics, MSFT leads 15 to 2.
- Is COST or MSFT cheaper?
- On trailing earnings, MSFT is cheaper: COST trades at a 49.41 P/E and MSFT at 23.26.
- Which has grown faster, COST or MSFT?
- Over the past five years, MSFT grew revenue faster — COST at a 9.48% CAGR versus MSFT at 14.75%.
- Does COST or MSFT pay a bigger dividend?
- COST yields 0.55% and MSFT yields 0.91% based on trailing dividends and the latest price.
- Is COST or MSFT more profitable?
- MSFT runs the higher net margin — COST at 3.01% versus MSFT at 39.34%.
- Which has been the better investment, COST or MSFT?
- Over the past 10-year, MSFT delivered the higher annualized total return — COST at 21.26% versus MSFT at 23.98%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Costco Wholesale P/E ratioMicrosoft P/E ratioCostco Wholesale dividend yieldMicrosoft dividend yieldCostco Wholesale ROEMicrosoft ROECostco Wholesale operating marginMicrosoft operating marginCostco Wholesale revenue growthMicrosoft revenue growthCostco Wholesale free cash flowMicrosoft free cash flow
Costco Wholesale & 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 14, 2026.