Meta Platforms, Inc. (META) vs Microsoft Corporation (MSFT)
A side-by-side comparison of Meta Platforms, 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: META is classified in Communication Services; MSFT is classified in Technology. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
META
Meta Platforms, Inc.
$593.41Communication ServicesDelayed quote: Jul 28, 2026, 4:00 PM EDT
MSFT
Microsoft Corporation
$393.35TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT
Total return — META vs MSFT
growth of $100 · dividends reinvested · last 14yMETA +1470.4%MSFT +1557.4%MSFT compounded faster
META MSFT
META vs MSFT: by the numbers
- •MSFT is the larger company ($2.92T vs $1.51T market cap).
- •META trades at the lower trailing earnings multiple (21.60 vs 23.16 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (39.34% vs 32.84% net margin).
- •META grew revenue faster over the past five years (17.89% vs 14.75% CAGR).
- •MSFT pays the higher dividend yield (0.91% vs 0.35%).
Metrics side by side
Valuation
| Metric | META | MSFT |
|---|---|---|
| P/E ratio | 21.60 | 23.16 |
| Forward P/E | 18.03 | 22.87 |
| P/S ratio | 7.08 | 9.10 |
| P/B ratio | 6.25 | 6.99 |
| PEG ratio | 1.16 | 2.34 |
| EV / EBITDA | 14.51 | 15.53 |
| FCF yield | 3.17% | 2.52% |
Profitability
| Metric | META | MSFT |
|---|---|---|
| Gross margin | 81.94% | 68.31% |
| Operating margin | 41.21% | 46.80% |
| Net margin | 32.84% | 39.34% |
| ROE | 28.97% | 30.22% |
| ROIC | 17.95% | 21.63% |
Dividends
| Metric | META | MSFT |
|---|---|---|
| Dividend yield | 0.35% | 0.91% |
| Payout ratio | 8.76% | 25.99% |
Growth (annualized)
| Metric | META | MSFT |
|---|---|---|
| Revenue CAGR (5Y) | 17.89% | 14.75% |
| EPS CAGR (5Y) | 18.60% | 18.68% |
| FCF CAGR (5Y) | 14.84% | 6.27% |
| Total return CAGR (5Y) | 10.03% | 7.19% |
Frequently asked
- Which has the lower trailing P/E, META or MSFT?
- META has the lower trailing P/E: META trades at 21.60 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, META or MSFT?
- Over the past five years, META grew revenue faster — META at a 17.89% CAGR versus MSFT at 14.75%.
- Does META or MSFT pay a bigger dividend?
- META yields 0.35% and MSFT yields 0.91% based on trailing dividends and the latest price.
- Is META or MSFT more profitable?
- MSFT runs the higher net margin — META at 32.84% versus MSFT at 39.34%.
- How have META and MSFT total returns compared?
- Over the past 10 years, META delivered 17.02% and MSFT delivered 22.86% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Meta Platforms P/E ratioMicrosoft P/E ratioMeta Platforms dividend yieldMicrosoft dividend yieldMeta Platforms ROEMicrosoft ROEMeta Platforms operating marginMicrosoft operating marginMeta Platforms revenue growthMicrosoft revenue growthMeta Platforms free cash flowMicrosoft free cash flow
Meta Platforms & 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.