Microsoft Corporation (MSFT) vs Tesla, Inc. (TSLA)
A side-by-side comparison of Microsoft Corporation and Tesla, Inc. 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; TSLA is classified in Consumer Cyclical. 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
TSLA
Tesla, Inc.
$365.44Consumer CyclicalDelayed quote: Sep 11, 2026, 4:00 PM EDT
Total return — MSFT vs TSLA
growth of $100 · dividends reinvested · last 10yMSFT +875.9% (+25.6%/yr)TSLA +2653.1% (+39.3%/yr)TSLA compounded faster over this window
MSFT TSLA
MSFT vs TSLA: by the numbers
- •MSFT is the larger company ($3.68T vs $1.44T market cap).
- •MSFT trades at the lower trailing earnings multiple (27.61 vs 338.37 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (40.31% vs 3.68% net margin).
- •TSLA grew revenue faster over the past five years (19.88% vs 14.57% CAGR).
- •MSFT pays a dividend (0.74% yield), while TSLA has no payments in the available dividend history.
Metrics side by side
Valuation
| Metric | MSFT | TSLA |
|---|---|---|
| P/E ratio | 27.61 | 338.37 |
| Forward P/E | 25.13 | 214.28 |
| P/S ratio | 11.09 | 13.93 |
| P/B ratio | 8.32 | 16.62 |
| EV / EBITDA | 19.55 | 132.50 |
| FCF yield | 1.82% | 0.40% |
Profitability
| Metric | MSFT | TSLA |
|---|---|---|
| Gross margin | 67.94% | 18.85% |
| Operating margin | 46.78% | 4.22% |
| Net margin | 40.31% | 3.68% |
| ROE | 30.23% | 4.40% |
| ROIC | 20.90% | 2.83% |
Dividends
| Metric | MSFT | TSLA |
|---|---|---|
| Dividend yield | 0.74% | N/A |
| Payout ratio | 20.28% | N/A |
Growth (annualized)
| Metric | MSFT | TSLA |
|---|---|---|
| Revenue CAGR (5Y) | 14.57% | 19.88% |
| EPS CAGR (5Y) | 17.26% | 36.40% |
| FCF CAGR (5Y) | 3.60% | 17.13% |
| Total return CAGR (5Y) | 11.66% | 7.89% |
Frequently asked
- Which has the lower trailing P/E, MSFT or TSLA?
- MSFT has the lower trailing P/E: MSFT trades at 27.61 and TSLA at 338.37. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, MSFT or TSLA?
- Over the past five years, TSLA grew revenue faster — MSFT at a 14.57% CAGR versus TSLA at 19.88%.
- Does MSFT or TSLA pay a bigger dividend?
- MSFT pays a dividend (0.74% yield), while TSLA has no payments in the available dividend history.
- Is MSFT or TSLA more profitable?
- MSFT runs the higher net margin — MSFT at 40.31% versus TSLA at 3.68%.
- How have MSFT and TSLA total returns compared?
- Over the past 10 years, MSFT delivered 25.72% and TSLA delivered 39.74% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Microsoft P/E ratioTesla P/E ratioMicrosoft dividend yieldMicrosoft ROETesla ROEMicrosoft operating marginTesla operating marginMicrosoft revenue growthTesla revenue growthMicrosoft free cash flowTesla free cash flow
Microsoft & Tesla 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.