Microsoft Corporation (MSFT) vs NVIDIA Corporation (NVDA)
A side-by-side comparison of Microsoft Corporation and NVIDIA 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.
MSFT
Microsoft Corporation
$393.35TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT
NVDA
NVIDIA Corporation
$197.01TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT
Total return — MSFT vs NVDA
growth of $100 · dividends reinvested · last 28yMSFT +1361.3%NVDA +522434.1%NVDA compounded faster
Log scale — wide-divergence pair
MSFT NVDA
MSFT vs NVDA: by the numbers
- •NVDA is the larger company ($4.77T vs $2.92T market cap).
- •MSFT trades at the lower trailing earnings multiple (23.16 vs 30.09 P/E), one valuation lens rather than an overall verdict.
- •NVDA converts more revenue to profit (62.97% vs 39.34% net margin).
- •NVDA grew revenue faster over the past five years (68.23% vs 14.75% CAGR).
- •MSFT pays the higher dividend yield (0.91% vs 0.02%).
Metrics side by side
Valuation
| Metric | MSFT | NVDA |
|---|---|---|
| P/E ratio | 23.16 | 30.09 |
| Forward P/E | 22.87 | 41.87 |
| P/S ratio | 9.10 | 18.91 |
| P/B ratio | 6.99 | 24.52 |
| PEG ratio | 2.34 | 0.57 |
| EV / EBITDA | 15.53 | 28.96 |
| FCF yield | 2.52% | 2.48% |
Profitability
| Metric | MSFT | NVDA |
|---|---|---|
| Gross margin | 68.31% | 74.15% |
| Operating margin | 46.80% | 64.02% |
| Net margin | 39.34% | 62.97% |
| ROE | 30.22% | 81.65% |
| ROIC | 21.63% | 62.88% |
Dividends
| Metric | MSFT | NVDA |
|---|---|---|
| Dividend yield | 0.91% | 0.02% |
| Payout ratio | 25.99% | 0.61% |
Growth (annualized)
| Metric | MSFT | NVDA |
|---|---|---|
| Revenue CAGR (5Y) | 14.75% | 68.23% |
| EPS CAGR (5Y) | 18.68% | 85.78% |
| FCF CAGR (5Y) | 6.27% | 85.52% |
| Total return CAGR (5Y) | 7.19% | 59.29% |
Frequently asked
- Which has the lower trailing P/E, MSFT or NVDA?
- MSFT has the lower trailing P/E: MSFT trades at 23.16 and NVDA at 30.09. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, MSFT or NVDA?
- Over the past five years, NVDA grew revenue faster — MSFT at a 14.75% CAGR versus NVDA at 68.23%.
- Does MSFT or NVDA pay a bigger dividend?
- MSFT yields 0.91% and NVDA yields 0.02% based on trailing dividends and the latest price.
- Is MSFT or NVDA more profitable?
- NVDA runs the higher net margin — MSFT at 39.34% versus NVDA at 62.97%.
- How have MSFT and NVDA total returns compared?
- Over the past 10 years, MSFT delivered 22.86% and NVDA delivered 64.27% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Microsoft P/E ratioNVIDIA P/E ratioMicrosoft dividend yieldNVIDIA dividend yieldMicrosoft ROENVIDIA ROEMicrosoft operating marginNVIDIA operating marginMicrosoft revenue growthNVIDIA revenue growthMicrosoft free cash flowNVIDIA free cash flow
Microsoft & NVIDIA 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.