Microsoft Corporation (MSFT) vs Netflix, Inc. (NFLX)
A side-by-side comparison of Microsoft Corporation and Netflix, Inc. 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: MSFT is classified in Technology; NFLX is classified in Communication Services. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
MSFT
Microsoft Corporation
$495.63TechnologyDelayed quote: Sep 11, 2026, 4:00 PM EDT
NFLX
Netflix, Inc.
$77.40Communication ServicesDelayed quote: Sep 11, 2026, 4:00 PM EDT
Total return — MSFT vs NFLX
growth of $100 · dividends reinvested · last 10yMSFT +861.8% (+25.4%/yr)NFLX +663.9% (+22.5%/yr)MSFT compounded faster over this window
MSFT NFLX
MSFT vs NFLX: by the numbers
- •MSFT is the larger company ($3.68T vs $322.29B market cap).
- •NFLX trades at the lower trailing earnings multiple (24.34 vs 27.61 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (40.31% vs 28.22% net margin).
- •MSFT grew revenue faster over the past five years (14.57% vs 11.89% CAGR).
- •MSFT pays a dividend (0.74% yield), while NFLX has no payments in the available dividend history.
Metrics side by side
Valuation
| Metric | MSFT | NFLX |
|---|---|---|
| P/E ratio | 27.61 | 24.34 |
| Forward P/E | 25.13 | 21.51 |
| P/S ratio | 11.09 | 6.66 |
| P/B ratio | 8.32 | 10.69 |
| EV / EBITDA | 19.55 | 10.23 |
| FCF yield | 1.82% | 3.41% |
Profitability
| Metric | MSFT | NFLX |
|---|---|---|
| Gross margin | 67.94% | 49.12% |
| Operating margin | 46.78% | 29.68% |
| Net margin | 40.31% | 28.22% |
| ROE | 30.23% | 45.27% |
| ROIC | 20.90% | 24.34% |
Dividends
| Metric | MSFT | NFLX |
|---|---|---|
| Dividend yield | 0.74% | N/A |
| Payout ratio | 20.28% | N/A |
Growth (annualized)
| Metric | MSFT | NFLX |
|---|---|---|
| Revenue CAGR (5Y) | 14.57% | 11.89% |
| EPS CAGR (5Y) | 17.26% | 32.58% |
| FCF CAGR (5Y) | 3.60% | 51.23% |
| Total return CAGR (5Y) | 11.66% | 4.89% |
Frequently asked
- Which has the lower trailing P/E, MSFT or NFLX?
- NFLX has the lower trailing P/E: MSFT trades at 27.61 and NFLX at 24.34. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, MSFT or NFLX?
- Over the past five years, MSFT grew revenue faster — MSFT at a 14.57% CAGR versus NFLX at 11.89%.
- Does MSFT or NFLX pay a bigger dividend?
- MSFT pays a dividend (0.74% yield), while NFLX has no payments in the available dividend history.
- Is MSFT or NFLX more profitable?
- MSFT runs the higher net margin — MSFT at 40.31% versus NFLX at 28.22%.
- How have MSFT and NFLX total returns compared?
- Over the past 10 years, MSFT delivered 25.72% and NFLX delivered 22.92% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Microsoft P/E ratioNetflix P/E ratioMicrosoft dividend yieldMicrosoft ROENetflix ROEMicrosoft operating marginNetflix operating marginMicrosoft revenue growthNetflix revenue growthMicrosoft free cash flowNetflix free cash flow
Microsoft & Netflix 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.