Microsoft Corporation (MSFT) vs Tesla, Inc. (TSLA)

MSFT leads on 12 of 16 compared metrics.

A side-by-side comparison of Microsoft Corporation and Tesla, Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 15, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).

Compare

Total return — MSFT vs TSLA

growth of $100 · last 16y
MSFT +1614.1%TSLA +25636.5%TSLA compounded faster
Log scale — wide-divergence pair
101001k10k100kStart $10020132016201920222025$1,714$25,736
MSFT TSLA

MSFT vs TSLA: by the numbers

  • MSFT is the larger company ($2.97T vs $1.53T market cap).
  • MSFT trades at the lower earnings multiple (23.26 vs 371.85 P/E).
  • MSFT converts more revenue to profit (39.34% vs 3.96% net margin).
  • TSLA grew revenue faster over the past five years (22.19% vs 14.75% CAGR).
  • MSFT pays a dividend (0.91% yield) while TSLA does not currently pay one.

Which is better, MSFT or TSLA?

Metric tally: MSFT 12 · TSLA 4

It depends on what you're optimizing for:

ValueMSFT(lower P/E)
GrowthTSLA(faster 5Y revenue CAGR)
QualityMSFT(higher ROIC)

Metrics side by side

Valuation

MetricMSFTTSLA
P/E ratio23.26371.85
Forward P/E20.09167.87
P/S ratio9.1414.69
P/B ratio7.0217.10
PEG ratio2.3410.22
EV / EBITDA14.60118.55
FCF yield2.51%0.49%

Profitability

MetricMSFTTSLA
Gross margin68.31%19.07%
Operating margin46.80%5.00%
Net margin39.34%3.96%
ROE30.22%4.61%
ROIC21.63%2.95%

Dividends

MetricMSFTTSLA
Dividend yield0.91%
Payout ratio25.99%

Growth (annualized)

MetricMSFTTSLA
Revenue CAGR (5Y)14.75%22.19%
EPS CAGR (5Y)18.68%36.40%
FCF CAGR (5Y)6.27%23.85%
Total return CAGR (5Y)10.02%15.42%

Frequently asked

Which is better, MSFT or TSLA?
It depends on your goal. value: MSFT (lower P/E); growth: TSLA (faster 5Y revenue CAGR); quality: MSFT (higher ROIC). Across all compared metrics, MSFT leads 12 to 4.
Is MSFT or TSLA cheaper?
On trailing earnings, MSFT is cheaper: MSFT trades at a 23.26 P/E and TSLA at 371.85.
Which has grown faster, MSFT or TSLA?
Over the past five years, TSLA grew revenue faster — MSFT at a 14.75% CAGR versus TSLA at 22.19%.
Does MSFT or TSLA pay a bigger dividend?
MSFT pays a dividend (0.91% yield) while TSLA does not currently pay one.
Is MSFT or TSLA more profitable?
MSFT runs the higher net margin — MSFT at 39.34% versus TSLA at 3.96%.
Which has been the better investment, MSFT or TSLA?
Over the past 10-year, TSLA delivered the higher annualized total return — MSFT at 24.71% versus TSLA at 39.65%. 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 June 15, 2026.