Microsoft Corporation (MSFT) vs RTX Corporation (RTX)
A side-by-side comparison of Microsoft Corporation and RTX Corporation 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; RTX is classified in Industrials. 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
RTX
RTX Corporation
$218.58IndustrialsDelayed quote: Jul 28, 2026, 4:00 PM EDT
Total return — MSFT vs RTX
growth of $100 · dividends reinvested · last 30yMSFT +7530.9%RTX +5016.1%MSFT compounded faster
MSFT RTX
MSFT vs RTX: by the numbers
- •MSFT is the larger company ($2.92T vs $294.59B market cap).
- •MSFT trades at the lower trailing earnings multiple (23.16 vs 38.45 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (39.34% vs 8.28% net margin).
- •MSFT grew revenue faster over the past five years (14.75% vs 8.46% CAGR).
- •RTX pays the higher dividend yield (1.27% vs 0.91%).
Metrics side by side
Valuation
| Metric | MSFT | RTX |
|---|---|---|
| P/E ratio | 23.16 | 38.45 |
| Forward P/E | 22.87 | 30.50 |
| P/S ratio | 9.10 | 3.19 |
| P/B ratio | 6.99 | 4.49 |
| PEG ratio | 2.34 | 0.91 |
| EV / EBITDA | 15.53 | 21.72 |
| FCF yield | 2.52% | 4.03% |
Profitability
| Metric | MSFT | RTX |
|---|---|---|
| Gross margin | 68.31% | 20.35% |
| Operating margin | 46.80% | 11.21% |
| Net margin | 39.34% | 8.28% |
| ROE | 30.22% | 11.66% |
| ROIC | 21.63% | 6.49% |
Dividends
| Metric | MSFT | RTX |
|---|---|---|
| Dividend yield | 0.91% | 1.27% |
| Payout ratio | 25.99% | 55.18% |
Growth (annualized)
| Metric | MSFT | RTX |
|---|---|---|
| Revenue CAGR (5Y) | 14.75% | 8.46% |
| EPS CAGR (5Y) | 18.68% | N/A |
| FCF CAGR (5Y) | 6.27% | 31.43% |
| Total return CAGR (5Y) | 7.19% | 22.55% |
Frequently asked
- Which has the lower trailing P/E, MSFT or RTX?
- MSFT has the lower trailing P/E: MSFT trades at 23.16 and RTX at 38.45. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, MSFT or RTX?
- Over the past five years, MSFT grew revenue faster — MSFT at a 14.75% CAGR versus RTX at 8.46%.
- Does MSFT or RTX pay a bigger dividend?
- MSFT yields 0.91% and RTX yields 1.27% based on trailing dividends and the latest price.
- Is MSFT or RTX more profitable?
- MSFT runs the higher net margin — MSFT at 39.34% versus RTX at 8.28%.
- How have MSFT and RTX total returns compared?
- Over the past 10 years, MSFT delivered 22.86% and RTX delivered 15.85% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Microsoft P/E ratioRTX P/E ratioMicrosoft dividend yieldRTX dividend yieldMicrosoft ROERTX ROEMicrosoft operating marginRTX operating marginMicrosoft revenue growthRTX revenue growthMicrosoft free cash flowRTX free cash flow
Microsoft & RTX 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.