Microsoft Corporation (MSFT) vs Block, Inc. (SQ)
A side-by-side comparison of Microsoft Corporation and Block, 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.
MSFT
Microsoft Corporation
$393.35TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT
SQ
Block, Inc.
$88.67TechnologyAt close: Jan 24, 2025, 4:00 PM ET
Total return — MSFT vs SQ
growth of $100 · dividends reinvested · last 9yMSFT +804.9%SQ +578.4%MSFT compounded faster
MSFT SQ
MSFT vs SQ: by the numbers
- •MSFT is the larger company ($2.92T vs $51.73B market cap).
- •MSFT trades at the lower trailing earnings multiple (23.16 vs 49.81 P/E), one valuation lens rather than an overall verdict.
- •MSFT is profitable (39.34% net margin) while SQ runs a net loss (-2.04%).
- •MSFT grew revenue faster over the past five years (14.75% vs 13.19% CAGR).
- •MSFT pays a dividend (0.91% yield), while SQ has no payments in the available dividend history.
Metrics side by side
Valuation
| Metric | MSFT | SQ |
|---|---|---|
| P/E ratio | 23.16 | 49.81 |
| Forward P/E | 22.87 | N/A |
| P/S ratio | 9.10 | 2.35 |
| P/B ratio | 6.99 | 2.82 |
| PEG ratio | 2.34 | 2.00 |
| EV / EBITDA | 15.53 | 38.29 |
| FCF yield | 2.52% | 1.28% |
Profitability
| Metric | MSFT | SQ |
|---|---|---|
| Gross margin | 68.31% | 44.85% |
| Operating margin | 46.80% | 4.93% |
| Net margin | 39.34% | -2.04% |
| ROE | 30.22% | -2.30% |
| ROIC | 21.63% | -12.82% |
Dividends
| Metric | MSFT | SQ |
|---|---|---|
| Dividend yield | 0.91% | N/A |
| Payout ratio | 25.99% | N/A |
Growth (annualized)
| Metric | MSFT | SQ |
|---|---|---|
| Revenue CAGR (5Y) | 14.75% | 13.19% |
| EPS CAGR (5Y) | 18.68% | 34.72% |
| FCF CAGR (5Y) | 6.27% | 64.00% |
| Total return CAGR (5Y) | 7.19% | 4.50% |
Frequently asked
- Which has the lower trailing P/E, MSFT or SQ?
- MSFT has the lower trailing P/E: MSFT trades at 23.16 and SQ at 49.81. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, MSFT or SQ?
- Over the past five years, MSFT grew revenue faster — MSFT at a 14.75% CAGR versus SQ at 13.19%.
- Does MSFT or SQ pay a bigger dividend?
- MSFT pays a dividend (0.91% yield), while SQ has no payments in the available dividend history.
- Is MSFT or SQ more profitable?
- MSFT runs the higher net margin — MSFT at 39.34% versus SQ at -2.04%.
- How have MSFT and SQ total returns compared?
- Over the past 5 years, MSFT delivered 22.86% and SQ delivered 4.50% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Microsoft P/E ratioBlock P/E ratioMicrosoft dividend yieldBlock dividend yieldMicrosoft ROEBlock ROEMicrosoft operating marginBlock operating marginMicrosoft revenue growthBlock revenue growthMicrosoft free cash flowBlock free cash flow
Microsoft & Block appear in these rankings
Highest ROE StocksHighest ROIC StocksHighest Operating Margin StocksHighest 10-Year Total Return Stocks
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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.