Cisco Systems, Inc. (CSCO) vs Microsoft Corporation (MSFT)
A side-by-side comparison of Cisco Systems, 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.
CSCO
Cisco Systems, Inc.
$115.58TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT
MSFT
Microsoft Corporation
$393.35TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT
Total return — CSCO vs MSFT
growth of $100 · dividends reinvested · last 30yCSCO +3103.2%MSFT +7530.9%MSFT compounded faster
CSCO MSFT
CSCO vs MSFT: by the numbers
- •MSFT is the larger company ($2.92T vs $455.55B market cap).
- •MSFT trades at the lower trailing earnings multiple (23.16 vs 38.19 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (39.34% vs 19.69% net margin).
- •MSFT grew revenue faster over the past five years (14.75% vs 4.58% CAGR).
- •CSCO pays the higher dividend yield (1.45% vs 0.91%).
Metrics side by side
Valuation
| Metric | CSCO | MSFT |
|---|---|---|
| P/E ratio | 38.19 | 23.16 |
| Forward P/E | 26.80 | 22.87 |
| P/S ratio | 7.52 | 9.10 |
| P/B ratio | 9.35 | 6.99 |
| PEG ratio | 68.42 | 2.34 |
| EV / EBITDA | 28.77 | 15.53 |
| FCF yield | 2.76% | 2.52% |
Profitability
| Metric | CSCO | MSFT |
|---|---|---|
| Gross margin | 64.33% | 68.31% |
| Operating margin | 23.36% | 46.80% |
| Net margin | 19.69% | 39.34% |
| ROE | 24.47% | 30.22% |
| ROIC | 11.66% | 21.63% |
Dividends
| Metric | CSCO | MSFT |
|---|---|---|
| Dividend yield | 1.45% | 0.91% |
| Payout ratio | 64.84% | 25.99% |
Growth (annualized)
| Metric | CSCO | MSFT |
|---|---|---|
| Revenue CAGR (5Y) | 4.58% | 14.75% |
| EPS CAGR (5Y) | 0.50% | 18.68% |
| FCF CAGR (5Y) | -2.45% | 6.27% |
| Total return CAGR (5Y) | 19.58% | 7.19% |
Frequently asked
- Which has the lower trailing P/E, CSCO or MSFT?
- MSFT has the lower trailing P/E: CSCO trades at 38.19 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, CSCO or MSFT?
- Over the past five years, MSFT grew revenue faster — CSCO at a 4.58% CAGR versus MSFT at 14.75%.
- Does CSCO or MSFT pay a bigger dividend?
- CSCO yields 1.45% and MSFT yields 0.91% based on trailing dividends and the latest price.
- Is CSCO or MSFT more profitable?
- MSFT runs the higher net margin — CSCO at 19.69% versus MSFT at 39.34%.
- How have CSCO and MSFT total returns compared?
- Over the past 10 years, CSCO delivered 17.77% and MSFT delivered 22.86% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Cisco Systems P/E ratioMicrosoft P/E ratioCisco Systems dividend yieldMicrosoft dividend yieldCisco Systems ROEMicrosoft ROECisco Systems operating marginMicrosoft operating marginCisco Systems revenue growthMicrosoft revenue growthCisco Systems free cash flowMicrosoft free cash flow
Cisco Systems & 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.