Microsoft Corporation (MSFT) vs The Procter & Gamble Company (PG)
A side-by-side comparison of Microsoft Corporation and The Procter & Gamble Company 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: MSFT is classified in Technology; PG is classified in Consumer Defensive. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
MSFT
Microsoft Corporation
$393.35TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT
PG
The Procter & Gamble Company
$148.75Consumer DefensiveDelayed quote: Jul 28, 2026, 4:00 PM EDT
Total return — MSFT vs PG
growth of $100 · dividends reinvested · last 30yMSFT +7530.9%PG +1365.9%MSFT compounded faster
Log scale — wide-divergence pair
MSFT PG
MSFT vs PG: by the numbers
- •MSFT is the larger company ($2.92T vs $346.38B market cap).
- •PG trades at the lower trailing earnings multiple (21.73 vs 23.16 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (39.34% vs 19.22% net margin).
- •MSFT grew revenue faster over the past five years (14.75% vs 2.98% CAGR).
- •PG pays the higher dividend yield (2.87% vs 0.91%).
Metrics side by side
Valuation
| Metric | MSFT | PG |
|---|---|---|
| P/E ratio | 23.16 | 21.73 |
| Forward P/E | 22.87 | 21.62 |
| P/S ratio | 9.10 | 4.14 |
| P/B ratio | 6.99 | 6.59 |
| PEG ratio | 2.34 | 3.01 |
| EV / EBITDA | 15.53 | 16.53 |
| FCF yield | 2.52% | 4.18% |
Profitability
| Metric | MSFT | PG |
|---|---|---|
| Gross margin | 68.31% | 50.33% |
| Operating margin | 46.80% | 23.24% |
| Net margin | 39.34% | 19.22% |
| ROE | 30.22% | 30.58% |
| ROIC | 21.63% | 16.47% |
Dividends
| Metric | MSFT | PG |
|---|---|---|
| Dividend yield | 0.91% | 2.87% |
| Payout ratio | 25.99% | 63.85% |
Growth (annualized)
| Metric | MSFT | PG |
|---|---|---|
| Revenue CAGR (5Y) | 14.75% | 2.98% |
| EPS CAGR (5Y) | 18.68% | 5.39% |
| FCF CAGR (5Y) | 6.27% | -1.64% |
| Total return CAGR (5Y) | 7.19% | 3.71% |
Frequently asked
- Which has the lower trailing P/E, MSFT or PG?
- PG has the lower trailing P/E: MSFT trades at 23.16 and PG at 21.73. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, MSFT or PG?
- Over the past five years, MSFT grew revenue faster — MSFT at a 14.75% CAGR versus PG at 2.98%.
- Does MSFT or PG pay a bigger dividend?
- MSFT yields 0.91% and PG yields 2.87% based on trailing dividends and the latest price.
- Is MSFT or PG more profitable?
- MSFT runs the higher net margin — MSFT at 39.34% versus PG at 19.22%.
- How have MSFT and PG total returns compared?
- Over the past 10 years, MSFT delivered 22.86% and PG delivered 8.74% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Microsoft P/E ratioProcter & Gamble P/E ratioMicrosoft dividend yieldProcter & Gamble dividend yieldMicrosoft ROEProcter & Gamble ROEMicrosoft operating marginProcter & Gamble operating marginMicrosoft revenue growthProcter & Gamble revenue growthMicrosoft free cash flowProcter & Gamble free cash flow
Microsoft & Procter & Gamble 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.