Microsoft Corporation (MSFT) vs Toyota Motor Corporation (TM)
A side-by-side comparison of Microsoft Corporation and Toyota Motor Corporation across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of September 13, 2026. Differences are shown without an overall score or investment verdict.
Different business models: MSFT is classified in Technology; TM is classified in Consumer Cyclical. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
MSFT
Microsoft Corporation
$497.12TechnologyDelayed quote: Sep 15, 2026, 4:00 PM EDT
TM
Toyota Motor Corporation
$195.47Consumer CyclicalDelayed quote: Sep 15, 2026, 4:00 PM EDT
Total return — MSFT vs TM
growth of $100 · dividends reinvested · last 10yMSFT +868.0% (+25.5%/yr)TM +132.8% (+8.8%/yr)MSFT compounded faster over this window
MSFT TM
MSFT vs TM: by the numbers
- •MSFT is the larger company ($3.69T vs $231.47B market cap).
- •TM trades at the lower trailing earnings multiple (8.63 vs 27.69 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (40.31% vs 8.60% net margin).
- •MSFT grew revenue faster over the past five years (14.57% vs 3.43% CAGR).
- •TM pays the higher dividend yield (3.03% vs 0.73%).
Metrics side by side
Valuation
| Metric | MSFT | TM |
|---|---|---|
| P/E ratio | 27.69 | 8.63 |
| Forward P/E | 25.20 | N/A |
| P/S ratio | 11.12 | 0.69 |
| P/B ratio | 8.34 | 1.02 |
| EV / EBITDA | 19.61 | 10.99 |
| FCF yield | 1.81% | N/A |
Profitability
| Metric | MSFT | TM |
|---|---|---|
| Gross margin | 67.94% | 16.74% |
| Operating margin | 46.78% | 7.05% |
| Net margin | 40.31% | 8.60% |
| ROE | 30.23% | 12.69% |
| ROIC | 20.90% | 3.53% |
Dividends
| Metric | MSFT | TM |
|---|---|---|
| Dividend yield | 0.73% | 3.03% |
| Payout ratio | 20.28% | 26.50% |
Growth (annualized)
| Metric | MSFT | TM |
|---|---|---|
| Revenue CAGR (5Y) | 14.57% | 3.43% |
| EPS CAGR (5Y) | 17.26% | 6.33% |
| FCF CAGR (5Y) | 3.60% | N/A |
| Total return CAGR (5Y) | 11.79% | 5.25% |
Frequently asked
- Which has the lower trailing P/E, MSFT or TM?
- TM has the lower trailing P/E: MSFT trades at 27.69 and TM at 8.63. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, MSFT or TM?
- Over the past five years, MSFT grew revenue faster — MSFT at a 14.57% CAGR versus TM at 3.43%.
- Does MSFT or TM pay a bigger dividend?
- MSFT yields 0.73% and TM yields 3.03% based on trailing dividends and the latest price.
- Is MSFT or TM more profitable?
- MSFT runs the higher net margin — MSFT at 40.31% versus TM at 8.60%.
- How have MSFT and TM total returns compared?
- Over the past 10 years, MSFT delivered 25.79% and TM delivered 8.44% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Microsoft P/E ratioToyota Motor P/E ratioMicrosoft dividend yieldToyota Motor dividend yieldMicrosoft ROEToyota Motor ROEMicrosoft operating marginToyota Motor operating marginMicrosoft revenue growthToyota Motor revenue growthMicrosoft free cash flowToyota Motor free cash flow
Microsoft & Toyota Motor 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 13, 2026.