Microsoft Corporation (MSFT) vs PepsiCo, Inc. (PEP)
A side-by-side comparison of Microsoft Corporation and PepsiCo, 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; PEP is classified in Consumer Defensive. 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
PEP
PepsiCo, Inc.
$136.32Consumer DefensiveDelayed quote: Sep 11, 2026, 4:00 PM EDT
Total return — MSFT vs PEP
growth of $100 · dividends reinvested · last 10yMSFT +875.9% (+25.6%/yr)PEP +78.1% (+5.9%/yr)MSFT compounded faster over this window
Log scale — wide-divergence pair
MSFT PEP
MSFT vs PEP: by the numbers
- •MSFT is the larger company ($3.68T vs $186.21B market cap).
- •PEP trades at the lower trailing earnings multiple (17.87 vs 27.61 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (40.31% vs 10.82% net margin).
- •MSFT grew revenue faster over the past five years (14.57% vs 5.37% CAGR).
- •PEP pays the higher dividend yield (4.25% vs 0.74%).
Metrics side by side
Valuation
| Metric | MSFT | PEP |
|---|---|---|
| P/E ratio | 27.61 | 17.87 |
| Forward P/E | 25.13 | 15.94 |
| P/S ratio | 11.09 | 1.92 |
| P/B ratio | 8.32 | 8.43 |
| EV / EBITDA | 19.55 | 12.16 |
| FCF yield | 1.82% | 4.98% |
Profitability
| Metric | MSFT | PEP |
|---|---|---|
| Gross margin | 67.94% | 53.96% |
| Operating margin | 46.78% | 14.96% |
| Net margin | 40.31% | 10.82% |
| ROE | 30.23% | 47.45% |
| ROIC | 20.90% | 13.22% |
Dividends
| Metric | MSFT | PEP |
|---|---|---|
| Dividend yield | 0.74% | 4.25% |
| Payout ratio | 20.28% | 76.08% |
Growth (annualized)
| Metric | MSFT | PEP |
|---|---|---|
| Revenue CAGR (5Y) | 14.57% | 5.37% |
| EPS CAGR (5Y) | 17.26% | 3.25% |
| FCF CAGR (5Y) | 3.60% | 5.40% |
| Total return CAGR (5Y) | 11.66% | 0.63% |
Frequently asked
- Which has the lower trailing P/E, MSFT or PEP?
- PEP has the lower trailing P/E: MSFT trades at 27.61 and PEP at 17.87. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, MSFT or PEP?
- Over the past five years, MSFT grew revenue faster — MSFT at a 14.57% CAGR versus PEP at 5.37%.
- Does MSFT or PEP pay a bigger dividend?
- MSFT yields 0.74% and PEP yields 4.25% based on trailing dividends and the latest price.
- Is MSFT or PEP more profitable?
- MSFT runs the higher net margin — MSFT at 40.31% versus PEP at 10.82%.
- How have MSFT and PEP total returns compared?
- Over the past 10 years, MSFT delivered 25.72% and PEP delivered 6.00% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Microsoft P/E ratioPepsiCo P/E ratioMicrosoft dividend yieldPepsiCo dividend yieldMicrosoft ROEPepsiCo ROEMicrosoft operating marginPepsiCo operating marginMicrosoft revenue growthPepsiCo revenue growthMicrosoft free cash flowPepsiCo free cash flow
Microsoft & PepsiCo 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 September 11, 2026.