Microsoft Corporation (MSFT) vs Tencent Holdings Limited (TCEHY)
MSFT leads on 9 of 16 compared metrics, though TCEHY is the cheaper stock.
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 June 13, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
MSFT
Microsoft Corporation
$390.74Technology
TCEHY
Tencent Holdings Limited
$59.06Communication Services
Total return — MSFT vs TCEHY
growth of $100 · last 18yMSFT +1560.6%TCEHY +4118.6%TCEHY compounded faster
MSFT TCEHY
MSFT vs TCEHY: by the numbers
- •MSFT is the larger company ($2.90T vs $533.13B market cap).
- •TCEHY trades at the lower earnings multiple (16.48 vs 23.26 P/E).
- •MSFT converts more revenue to profit (39.34% vs 30.60% net margin).
- •MSFT grew revenue faster over the past five years (14.75% vs 7.40% CAGR).
- •TCEHY pays the higher dividend yield (1.14% vs 0.91%).
Which is better, MSFT or TCEHY?
Metric tally: MSFT 9 · TCEHY 7It depends on what you're optimizing for:
ValueTCEHY(lower P/E)
GrowthMSFT(faster 5Y revenue CAGR)
IncomeTCEHY(higher dividend yield)
QualityMSFT(higher ROIC)
Valuation
| Metric | MSFT | TCEHY |
|---|---|---|
| P/E ratio | 23.26 | 16.48● |
| Forward P/E | 20.11 | — |
| P/S ratio | 9.14 | 5.00● |
| P/B ratio | 7.02 | 3.33● |
| PEG ratio | 2.34 | 1.50● |
| EV / EBITDA | 14.60 | 12.31● |
| FCF yield | 2.51% | 4.78%● |
Profitability
| Metric | MSFT | TCEHY |
|---|---|---|
| Gross margin | 68.31%● | 55.36% |
| Operating margin | 46.80%● | 32.33% |
| Net margin | 39.34%● | 30.60% |
| ROE | 30.22%● | 20.37% |
| ROIC | 21.63%● | 11.71% |
Dividends
| Metric | MSFT | TCEHY |
|---|---|---|
| Dividend yield | 0.91% | 1.14%● |
| Payout ratio | 25.99% | 19.63% |
Growth (annualized)
| Metric | MSFT | TCEHY |
|---|---|---|
| Revenue CAGR (5Y) | 14.75%● | 7.40% |
| EPS CAGR (5Y) | 18.68%● | 5.91% |
| FCF CAGR (5Y) | 6.27%● | 2.70% |
| Total return CAGR (5Y) | 9.56%● | -3.77% |
Frequently asked
- Which is better, MSFT or TCEHY?
- It depends on your goal. value: TCEHY (lower P/E); growth: MSFT (faster 5Y revenue CAGR); income: TCEHY (higher dividend yield); quality: MSFT (higher ROIC). Across all compared metrics, MSFT leads 9 to 7.
- Is MSFT or TCEHY cheaper?
- On trailing earnings, TCEHY is cheaper: MSFT trades at a 23.26 P/E and TCEHY at 16.48.
- Which has grown faster, MSFT or TCEHY?
- Over the past five years, MSFT grew revenue faster — MSFT at a 14.75% CAGR versus TCEHY at 7.40%.
- Does MSFT or TCEHY pay a bigger dividend?
- MSFT yields 0.91% and TCEHY yields 1.14% based on trailing dividends and the latest price.
- Is MSFT or TCEHY more profitable?
- MSFT runs the higher net margin — MSFT at 39.34% versus TCEHY at 30.60%.
- Which has been the better investment, MSFT or TCEHY?
- Over the past 10-year, MSFT delivered the higher annualized total return — MSFT at 23.98% versus TCEHY at 11.18%. 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 June 13, 2026.