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 September 11, 2026. Differences are shown without an overall score or investment verdict.

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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.

Total returnMSFT vs TGT

growth of $100 · dividends reinvested · last 10y
MSFT +875.9% (+25.6%/yr)TGT +207.6% (+11.9%/yr)MSFT compounded faster over this window
2004006008001kStart $10020182020202220242026$976$308
MSFT TGT

MSFT vs TGT: by the numbers

  • MSFT is the larger company ($3.68T vs $70.78B market cap).
  • TGT trades at the lower trailing earnings multiple (16.16 vs 27.61 P/E), one valuation lens rather than an overall verdict.
  • MSFT converts more revenue to profit (40.31% vs 4.08% net margin).
  • MSFT grew revenue faster over the past five years (14.57% vs -0.29% CAGR).
  • TGT pays the higher dividend yield (2.91% vs 0.74%).

Metrics side by side

Valuation

MetricMSFTTGT
P/E ratio27.6116.16
Forward P/E25.1315.46
P/S ratio11.090.66
P/B ratio8.323.97
EV / EBITDA19.559.14
FCF yield1.82%6.43%

Profitability

MetricMSFTTGT
Gross margin67.94%29.30%
Operating margin46.78%5.59%
Net margin40.31%4.08%
ROE30.23%24.61%
ROIC20.90%11.35%

Dividends

MetricMSFTTGT
Dividend yield0.74%2.91%
Payout ratio20.28%47.51%

Growth (annualized)

MetricMSFTTGT
Revenue CAGR (5Y)14.57%-0.29%
EPS CAGR (5Y)17.26%-1.34%
FCF CAGR (5Y)3.60%-6.17%
Total return CAGR (5Y)11.66%-5.58%

Frequently asked

Which has the lower trailing P/E, MSFT or TGT?
TGT has the lower trailing P/E: MSFT trades at 27.61 and TGT at 16.16. 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 14.57% CAGR versus TGT at -0.29%.
Does MSFT or TGT pay a bigger dividend?
MSFT yields 0.74% and TGT yields 2.91% based on trailing dividends and the latest price.
Is MSFT or TGT more profitable?
MSFT runs the higher net margin — MSFT at 40.31% versus TGT at 4.08%.
How have MSFT and TGT total returns compared?
Over the past 10 years, MSFT delivered 25.72% and TGT delivered 11.93% annualized total return. Past performance doesn't predict future results.

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.