Microsoft Corporation (MSFT) vs Tencent Holdings Limited (TCEHY)
A side-by-side comparison of Microsoft Corporation and Tencent Holdings Limited across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of September 11, 2026. Differences are shown without an overall score or investment verdict.
Different business models: MSFT is classified in Technology; TCEHY is classified in Communication Services. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
MSFT
Microsoft Corporation
$495.63TechnologyDelayed quote: Sep 11, 2026, 4:00 PM EDT
TCEHY
Tencent Holdings Limited
$54.55Communication ServicesDelayed quote: Sep 11, 2026, 4:00 PM EDT
Total return — MSFT vs TCEHY
growth of $100 · dividends reinvested · last 10yMSFT +875.9% (+25.6%/yr)TCEHY +121.6% (+8.3%/yr)MSFT compounded faster over this window
MSFT TCEHY
MSFT vs TCEHY: by the numbers
- •MSFT is the larger company ($3.68T vs $491.57B market cap).
- •TCEHY trades at the lower trailing earnings multiple (14.97 vs 27.61 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (40.31% vs 29.83% net margin).
- •MSFT grew revenue faster over the past five years (14.57% vs 6.83% CAGR).
- •TCEHY pays the higher dividend yield (1.23% vs 0.74%).
Metrics side by side
Valuation
| Metric | MSFT | TCEHY |
|---|---|---|
| P/E ratio | 27.61 | 14.97 |
| Forward P/E | 25.13 | N/A |
| P/S ratio | 11.09 | 4.36 |
| P/B ratio | 8.32 | 2.94 |
| EV / EBITDA | 19.55 | 11.31 |
| FCF yield | 1.82% | 5.21% |
Profitability
| Metric | MSFT | TCEHY |
|---|---|---|
| Gross margin | 67.94% | 55.66% |
| Operating margin | 46.78% | 32.48% |
| Net margin | 40.31% | 29.83% |
| ROE | 30.23% | 20.11% |
| ROIC | 20.90% | 11.92% |
Dividends
| Metric | MSFT | TCEHY |
|---|---|---|
| Dividend yield | 0.74% | 1.23% |
| Payout ratio | 20.28% | 18.51% |
Growth (annualized)
| Metric | MSFT | TCEHY |
|---|---|---|
| Revenue CAGR (5Y) | 14.57% | 6.83% |
| EPS CAGR (5Y) | 17.26% | 5.91% |
| FCF CAGR (5Y) | 3.60% | 2.93% |
| Total return CAGR (5Y) | 11.66% | -0.93% |
Frequently asked
- Which has the lower trailing P/E, MSFT or TCEHY?
- TCEHY has the lower trailing P/E: MSFT trades at 27.61 and TCEHY at 14.97. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, MSFT or TCEHY?
- Over the past five years, MSFT grew revenue faster — MSFT at a 14.57% CAGR versus TCEHY at 6.83%.
- Does MSFT or TCEHY pay a bigger dividend?
- MSFT yields 0.74% and TCEHY yields 1.23% based on trailing dividends and the latest price.
- Is MSFT or TCEHY more profitable?
- MSFT runs the higher net margin — MSFT at 40.31% versus TCEHY at 29.83%.
- How have MSFT and TCEHY total returns compared?
- Over the past 10 years, MSFT delivered 25.72% and TCEHY delivered 8.51% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Microsoft P/E ratioTencent P/E ratioMicrosoft dividend yieldTencent dividend yieldMicrosoft ROETencent ROEMicrosoft operating marginTencent operating marginMicrosoft revenue growthTencent revenue growthMicrosoft free cash flowTencent free cash flow
Microsoft & Tencent 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 September 11, 2026.