Costco Wholesale Corporation (COST) vs Microsoft Corporation (MSFT)
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 September 11, 2026. Differences are shown without an overall score or investment verdict.
Different business models: COST is classified in Consumer Defensive; MSFT is classified in Technology. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
COST
Costco Wholesale Corporation
$904.77Consumer DefensiveDelayed quote: Sep 11, 2026, 4:00 PM EDT
MSFT
Microsoft Corporation
$495.63TechnologyDelayed quote: Sep 11, 2026, 4:00 PM EDT
Total return — COST vs MSFT
growth of $100 · dividends reinvested · last 10yCOST +544.2% (+20.5%/yr)MSFT +874.1% (+25.6%/yr)MSFT compounded faster over this window
COST MSFT
COST vs MSFT: by the numbers
- •MSFT is the larger company ($3.68T vs $401.25B market cap).
- •MSFT trades at the lower trailing earnings multiple (27.61 vs 45.51 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (40.31% vs 3.01% net margin).
- •MSFT grew revenue faster over the past five years (14.57% vs 9.48% CAGR).
- •MSFT pays the higher dividend yield (0.74% vs 0.61%).
Metrics side by side
Valuation
| Metric | COST | MSFT |
|---|---|---|
| P/E ratio | 45.51 | 27.61 |
| Forward P/E | 39.92 | 25.13 |
| P/S ratio | 1.37 | 11.09 |
| P/B ratio | 11.97 | 8.32 |
| EV / EBITDA | 28.32 | 19.55 |
| FCF yield | 2.19% | 1.82% |
Profitability
| Metric | COST | MSFT |
|---|---|---|
| Gross margin | 12.88% | 67.94% |
| Operating margin | 3.82% | 46.78% |
| Net margin | 3.01% | 40.31% |
| ROE | 26.38% | 30.23% |
| ROIC | 19.01% | 20.90% |
Dividends
| Metric | COST | MSFT |
|---|---|---|
| Dividend yield | 0.61% | 0.74% |
| Payout ratio | 27.87% | 20.28% |
Growth (annualized)
| Metric | COST | MSFT |
|---|---|---|
| Revenue CAGR (5Y) | 9.48% | 14.57% |
| EPS CAGR (5Y) | 15.04% | 17.26% |
| FCF CAGR (5Y) | 4.95% | 3.60% |
| Total return CAGR (5Y) | 14.89% | 11.66% |
Frequently asked
- Which has the lower trailing P/E, COST or MSFT?
- MSFT has the lower trailing P/E: COST trades at 45.51 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, COST or MSFT?
- Over the past five years, MSFT grew revenue faster — COST at a 9.48% CAGR versus MSFT at 14.57%.
- Does COST or MSFT pay a bigger dividend?
- COST yields 0.61% and MSFT yields 0.74% 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 40.31%.
- How have COST and MSFT total returns compared?
- Over the past 10 years, COST delivered 20.56% and MSFT delivered 25.72% annualized total return. 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 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 11, 2026.