Microsoft Corporation (MSFT) vs PepsiCo, Inc. (PEP)
MSFT leads on 10 of 17 compared metrics, though PEP is the cheaper stock.
A side-by-side comparison of Microsoft Corporation and PepsiCo, Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 14, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
Not enough overlapping price history to compare MSFT and PEP.
MSFT vs PEP: by the numbers
- •MSFT is the larger company ($2.90T vs $197.21B market cap).
- •PEP trades at the lower earnings multiple (22.65 vs 23.26 P/E).
- •MSFT converts more revenue to profit (39.34% vs 9.16% net margin).
- •MSFT grew revenue faster over the past five years (14.75% vs 6.00% CAGR).
- •PEP pays the higher dividend yield (3.98% vs 0.91%).
Which is better, MSFT or PEP?
Metric tally: MSFT 10 · PEP 7It depends on what you're optimizing for:
ValuePEP(lower P/E)
GrowthMSFT(faster 5Y revenue CAGR)
IncomePEP(higher dividend yield)
QualityMSFT(higher ROIC)
Valuation
| Metric | MSFT | PEP |
|---|---|---|
| P/E ratio | 23.26 | 22.65● |
| Forward P/E | 20.12 | 15.81● |
| P/S ratio | 9.14 | 2.07● |
| P/B ratio | 7.02● | 9.25 |
| PEG ratio | 2.34● | 9.44 |
| EV / EBITDA | 14.60● | 15.92 |
| FCF yield | 2.51% | 4.47%● |
Profitability
| Metric | MSFT | PEP |
|---|---|---|
| Gross margin | 68.31%● | 54.06% |
| Operating margin | 46.80%● | 14.79% |
| Net margin | 39.34%● | 9.16% |
| ROE | 30.22% | 40.89%● |
| ROIC | 21.63%● | 13.29% |
Dividends
| Metric | MSFT | PEP |
|---|---|---|
| Dividend yield | 0.91% | 3.98%● |
| Payout ratio | 25.99% | 95.32% |
Growth (annualized)
| Metric | MSFT | PEP |
|---|---|---|
| Revenue CAGR (5Y) | 14.75%● | 6.00% |
| EPS CAGR (5Y) | 18.68%● | 2.40% |
| FCF CAGR (5Y) | 6.27% | 6.62%● |
| Total return CAGR (5Y) | 9.56%● | 2.72% |
Frequently asked
- Which is better, MSFT or PEP?
- It depends on your goal. value: PEP (lower P/E); growth: MSFT (faster 5Y revenue CAGR); income: PEP (higher dividend yield); quality: MSFT (higher ROIC). Across all compared metrics, MSFT leads 10 to 7.
- Is MSFT or PEP cheaper?
- On trailing earnings, PEP is cheaper: MSFT trades at a 23.26 P/E and PEP at 22.65.
- Which has grown faster, MSFT or PEP?
- Over the past five years, MSFT grew revenue faster — MSFT at a 14.75% CAGR versus PEP at 6.00%.
- Does MSFT or PEP pay a bigger dividend?
- MSFT yields 0.91% and PEP yields 3.98% based on trailing dividends and the latest price.
- Is MSFT or PEP more profitable?
- MSFT runs the higher net margin — MSFT at 39.34% versus PEP at 9.16%.
- Which has been the better investment, MSFT or PEP?
- Over the past 10-year, MSFT delivered the higher annualized total return — MSFT at 23.98% versus PEP at 6.61%. 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 June 14, 2026.