Is MSFT or PM cheaper?

On trailing earnings, MSFT is cheaper: MSFT trades at a 22.20 P/E and PM at 25.42.

Which has grown faster, MSFT or PM?

Over the past five years, MSFT grew revenue faster — MSFT at a 14.75% CAGR versus PM at 7.34%.

Does MSFT or PM pay a bigger dividend?

MSFT yields 0.98% and PM yields 3.25% based on trailing dividends and the latest price.

Is MSFT or PM more profitable?

MSFT runs the higher net margin — MSFT at 39.34% versus PM at 26.74%.

Which has been the better investment, MSFT or PM?

Over the past 10-year, MSFT delivered the higher annualized total return — MSFT at 23.80% versus PM at 11.61%. Past performance doesn't predict future results.

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

MSFT leads on 9 of 15 compared metrics.

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 June 28, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).

MSFT

Microsoft Corporation

$2.77T

$372.97Technology

Philip Morris International Inc.

$281.74B

$180.77Consumer Defensive

Total return — MSFT vs PM

growth of $100 · last 18y

MSFT +1233.9%PM +266.0%MSFT compounded faster

MSFT PM

MSFT vs PM: by the numbers

•MSFT is the larger company ($2.77T vs $281.74B market cap).
•MSFT trades at the lower earnings multiple (22.20 vs 25.42 P/E).
•MSFT converts more revenue to profit (39.34% vs 26.74% net margin).
•MSFT grew revenue faster over the past five years (14.75% vs 7.34% CAGR).
•PM pays the higher dividend yield (3.25% vs 0.98%).

Which is better, MSFT or PM?

Metric tally: MSFT 9 · PM 6

It depends on what you're optimizing for:

ValueMSFT(lower P/E)

GrowthMSFT(faster 5Y revenue CAGR)

IncomePM(higher dividend yield)

QualityPM(higher ROIC)

Metrics side by side

Valuation

Metric	MSFT	PM
P/E ratio	22.20●	25.42
Forward P/E	19.17●	19.81
P/S ratio	8.72	6.81●
P/B ratio	6.70	—
PEG ratio	2.34	0.36●
EV / EBITDA	14.55●	19.01
FCF yield	2.63%	3.78%●

Profitability

Metric	MSFT	PM
Gross margin	68.31%	67.30%
Operating margin	46.80%●	36.83%
Net margin	39.34%●	26.74%
ROE	30.22%●	-113.55%
ROIC	21.63%	25.56%●

Dividends

Metric	MSFT	PM
Dividend yield	0.98%	3.25%●
Payout ratio	26.57%	80.88%

Growth (annualized)

Metric	MSFT	PM
Revenue CAGR (5Y)	14.75%●	7.34%
EPS CAGR (5Y)	18.68%●	7.10%
FCF CAGR (5Y)	6.27%●	4.58%
Total return CAGR (5Y)	7.96%	17.89%●

Frequently asked

Which is better, MSFT or PM?: It depends on your goal. value: MSFT (lower P/E); growth: MSFT (faster 5Y revenue CAGR); income: PM (higher dividend yield); quality: PM (higher ROIC). Across all compared metrics, MSFT leads 9 to 6.
Is MSFT or PM cheaper?: On trailing earnings, MSFT is cheaper: MSFT trades at a 22.20 P/E and PM at 25.42.
Which has grown faster, MSFT or PM?: Over the past five years, MSFT grew revenue faster — MSFT at a 14.75% CAGR versus PM at 7.34%.
Does MSFT or PM pay a bigger dividend?: MSFT yields 0.98% and PM yields 3.25% based on trailing dividends and the latest price.
Is MSFT or PM more profitable?: MSFT runs the higher net margin — MSFT at 39.34% versus PM at 26.74%.
Which has been the better investment, MSFT or PM?: Over the past 10-year, MSFT delivered the higher annualized total return — MSFT at 23.80% versus PM at 11.61%. 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 June 28, 2026.