Which has the lower trailing P/E, MSFT or PM?

PM has the lower trailing P/E: MSFT trades at 28.07 and PM at 26.72. P/E is one valuation measure and does not by itself establish which business is cheaper.

Which has grown faster, MSFT or PM?

Over the past five years, MSFT grew revenue faster — MSFT at a 14.57% CAGR versus PM at 7.19%.

Does MSFT or PM pay a bigger dividend?

MSFT yields 0.71% and PM yields 3.16% based on trailing dividends and the latest price.

Is MSFT or PM more profitable?

MSFT runs the higher net margin — MSFT at 40.31% versus PM at 25.56%.

How have MSFT and PM total returns compared?

Over the past 10 years, MSFT delivered 25.61% and PM delivered 11.92% annualized total return. Past performance doesn't predict future results.

Microsoft Corporation (MSFT) vs Philip Morris International Inc. (PM)

A side-by-side comparison of Microsoft Corporation and Philip Morris International Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of August 12, 2026. Differences are shown without an overall score or investment verdict.

Different business models: MSFT is classified in Technology; PM is classified in Consumer Defensive. Margin, capital intensity, and valuation differences should be interpreted in that sector context.

MSFT

Microsoft Corporation

$3.67T

$494.61TechnologyDelayed quote: Aug 12, 2026, 10:45 AM EDT

Philip Morris International Inc.

$289.40B

$185.68Consumer DefensiveDelayed quote: Aug 12, 2026, 10:45 AM EDT

Total return — MSFT vs PM

growth of $100 · dividends reinvested · last 10y

MSFT +871.7% (+25.5%/yr)PM +207.5% (+11.9%/yr)MSFT compounded faster over this window

MSFT PM

MSFT vs PM: by the numbers

•MSFT is the larger company ($3.67T vs $289.40B market cap).
•PM trades at the lower trailing earnings multiple (26.72 vs 28.07 P/E), one valuation lens rather than an overall verdict.
•MSFT converts more revenue to profit (40.31% vs 25.56% net margin).
•MSFT grew revenue faster over the past five years (14.57% vs 7.19% CAGR).
•PM pays the higher dividend yield (3.16% vs 0.71%).

Metrics side by side

Valuation

Metric	MSFT	PM
P/E ratio	28.07	26.72
Forward P/E	29.63	22.23
P/S ratio	11.32	6.83
P/B ratio	8.49	N/A
EV / EBITDA	19.93	18.43
FCF yield	1.78%	4.38%

Profitability

Metric	MSFT	PM
Gross margin	67.94%	67.51%
Operating margin	46.78%	37.75%
Net margin	40.31%	25.56%
ROE	30.23%	-113.55%
ROIC	20.56%	25.56%

Dividends

Metric	MSFT	PM
Dividend yield	0.71%	3.16%
Payout ratio	19.78%	80.88%

Growth (annualized)

Metric	MSFT	PM
Revenue CAGR (5Y)	14.57%	7.19%
EPS CAGR (5Y)	17.26%	7.10%
FCF CAGR (5Y)	3.60%	4.43%
Total return CAGR (5Y)	12.84%	18.68%

Frequently asked

Which has the lower trailing P/E, MSFT or PM?: PM has the lower trailing P/E: MSFT trades at 28.07 and PM at 26.72. P/E is one valuation measure and does not by itself establish which business is cheaper.
Which has grown faster, MSFT or PM?: Over the past five years, MSFT grew revenue faster — MSFT at a 14.57% CAGR versus PM at 7.19%.
Does MSFT or PM pay a bigger dividend?: MSFT yields 0.71% and PM yields 3.16% based on trailing dividends and the latest price.
Is MSFT or PM more profitable?: MSFT runs the higher net margin — MSFT at 40.31% versus PM at 25.56%.
How have MSFT and PM total returns compared?: Over the past 10 years, MSFT delivered 25.61% and PM delivered 11.92% annualized total return. Past performance doesn't predict future results.

Go deeper

Full MSFT analysis Full PM analysis Interactive comparison tool

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 August 12, 2026.