Microsoft Corporation (MSFT) vs Target Corporation (TGT)
A side-by-side comparison of Microsoft Corporation and Target 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; TGT is classified in Consumer Defensive. 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
TGT
Target Corporation
$144.18Consumer DefensiveDelayed quote: Jul 28, 2026, 4:00 PM EDT
Total return — MSFT vs TGT
growth of $100 · dividends reinvested · last 30yMSFT +7530.9%TGT +3345.1%MSFT compounded faster
MSFT TGT
MSFT vs TGT: by the numbers
- •MSFT is the larger company ($2.92T vs $65.49B market cap).
- •TGT trades at the lower trailing earnings multiple (18.54 vs 23.16 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (39.34% vs 3.24% net margin).
- •MSFT grew revenue faster over the past five years (14.75% vs -0.29% CAGR).
- •TGT pays the higher dividend yield (3.25% vs 0.91%).
Metrics side by side
Valuation
| Metric | MSFT | TGT |
|---|---|---|
| P/E ratio | 23.16 | 18.54 |
| Forward P/E | 22.87 | 19.22 |
| P/S ratio | 9.10 | 0.60 |
| P/B ratio | 6.99 | 3.90 |
| PEG ratio | 2.34 | N/A |
| EV / EBITDA | 15.53 | 9.98 |
| FCF yield | 2.52% | 4.89% |
Profitability
| Metric | MSFT | TGT |
|---|---|---|
| Gross margin | 68.31% | 28.14% |
| Operating margin | 46.80% | 4.49% |
| Net margin | 39.34% | 3.24% |
| ROE | 30.22% | 21.04% |
| ROIC | 21.63% | 9.76% |
Dividends
| Metric | MSFT | TGT |
|---|---|---|
| Dividend yield | 0.91% | 3.25% |
| Payout ratio | 25.99% | 55.88% |
Growth (annualized)
| Metric | MSFT | TGT |
|---|---|---|
| Revenue CAGR (5Y) | 14.75% | -0.29% |
| EPS CAGR (5Y) | 18.68% | -1.34% |
| FCF CAGR (5Y) | 6.27% | -17.01% |
| Total return CAGR (5Y) | 7.19% | -8.75% |
Frequently asked
- Which has the lower trailing P/E, MSFT or TGT?
- TGT has the lower trailing P/E: MSFT trades at 23.16 and TGT at 18.54. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, MSFT or TGT?
- Over the past five years, MSFT grew revenue faster — MSFT at a 14.75% CAGR versus TGT at -0.29%.
- Does MSFT or TGT pay a bigger dividend?
- MSFT yields 0.91% and TGT yields 3.25% based on trailing dividends and the latest price.
- Is MSFT or TGT more profitable?
- MSFT runs the higher net margin — MSFT at 39.34% versus TGT at 3.24%.
- How have MSFT and TGT total returns compared?
- Over the past 10 years, MSFT delivered 22.86% and TGT delivered 9.69% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Microsoft P/E ratioTarget P/E ratioMicrosoft dividend yieldTarget dividend yieldMicrosoft ROETarget ROEMicrosoft operating marginTarget operating marginMicrosoft revenue growthTarget revenue growthMicrosoft free cash flowTarget free cash flow
Microsoft & Target appear in these rankings
Related comparisons
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.