Microsoft Corporation (MSFT) vs PayPal Holdings, Inc. (PYPL)
A side-by-side comparison of Microsoft Corporation and PayPal Holdings, Inc. 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; PYPL is classified in Financial Services. 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
PYPL
PayPal Holdings, Inc.
$58.32Financial ServicesDelayed quote: Jul 28, 2026, 4:00 PM EDT
Total return — MSFT vs PYPL
growth of $100 · dividends reinvested · last 11yMSFT +917.6%PYPL +53.9%MSFT compounded faster
Log scale — wide-divergence pair
MSFT PYPL
MSFT vs PYPL: by the numbers
- •MSFT is the larger company ($2.92T vs $51.44B market cap).
- •PYPL trades at the lower trailing earnings multiple (10.52 vs 23.16 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (39.34% vs 14.36% net margin).
- •MSFT grew revenue faster over the past five years (14.75% vs 7.43% CAGR).
- •MSFT pays the higher dividend yield (0.91% vs 0.75%).
Metrics side by side
Valuation
| Metric | MSFT | PYPL |
|---|---|---|
| P/E ratio | 23.16 | 10.52 |
| Forward P/E | 22.87 | 10.56 |
| P/S ratio | 9.10 | 1.53 |
| P/B ratio | 6.99 | 2.58 |
| PEG ratio | 2.34 | 0.30 |
| EV / EBITDA | 15.53 | N/A |
| FCF yield | 2.52% | N/A |
Profitability
| Metric | MSFT | PYPL |
|---|---|---|
| Gross margin | 68.31% | 45.75% |
| Operating margin | 46.80% | 18.78% |
| Net margin | 39.34% | 14.36% |
| ROE | 30.22% | 24.73% |
| ROIC | 21.63% | 14.95% |
Dividends
| Metric | MSFT | PYPL |
|---|---|---|
| Dividend yield | 0.91% | 0.75% |
| Payout ratio | 25.99% | 7.69% |
Growth (annualized)
| Metric | MSFT | PYPL |
|---|---|---|
| Revenue CAGR (5Y) | 14.75% | 7.43% |
| EPS CAGR (5Y) | 18.68% | 8.81% |
| FCF CAGR (5Y) | 6.27% | N/A |
| Total return CAGR (5Y) | 7.19% | -27.93% |
Frequently asked
- Which has the lower trailing P/E, MSFT or PYPL?
- PYPL has the lower trailing P/E: MSFT trades at 23.16 and PYPL at 10.52. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, MSFT or PYPL?
- Over the past five years, MSFT grew revenue faster — MSFT at a 14.75% CAGR versus PYPL at 7.43%.
- Does MSFT or PYPL pay a bigger dividend?
- MSFT yields 0.91% and PYPL yields 0.75% based on trailing dividends and the latest price.
- Is MSFT or PYPL more profitable?
- MSFT runs the higher net margin — MSFT at 39.34% versus PYPL at 14.36%.
- How have MSFT and PYPL total returns compared?
- Over the past 10 years, MSFT delivered 22.86% and PYPL delivered 4.66% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Microsoft P/E ratioPayPal P/E ratioMicrosoft dividend yieldPayPal dividend yieldMicrosoft ROEPayPal ROEMicrosoft operating marginPayPal operating marginMicrosoft revenue growthPayPal revenue growthMicrosoft free cash flowPayPal free cash flow
Microsoft & PayPal 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.