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).
Total return — MSFT vs TSLA
growth of $100 · last 16yMSFT +1614.1%TSLA +25636.5%TSLA compounded faster
Log scale — wide-divergence pair
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 4It depends on what you're optimizing for:
ValueMSFT(lower P/E)
GrowthTSLA(faster 5Y revenue CAGR)
QualityMSFT(higher ROIC)
Metrics side by side
Valuation
| Metric | MSFT | TSLA |
|---|---|---|
| P/E ratio | 23.26● | 371.85 |
| Forward P/E | 20.09● | 167.87 |
| P/S ratio | 9.14● | 14.69 |
| P/B ratio | 7.02● | 17.10 |
| PEG ratio | 2.34● | 10.22 |
| EV / EBITDA | 14.60● | 118.55 |
| FCF yield | 2.51%● | 0.49% |
Profitability
| Metric | MSFT | TSLA |
|---|---|---|
| Gross margin | 68.31%● | 19.07% |
| Operating margin | 46.80%● | 5.00% |
| Net margin | 39.34%● | 3.96% |
| ROE | 30.22%● | 4.61% |
| ROIC | 21.63%● | 2.95% |
Dividends
| Metric | MSFT | TSLA |
|---|---|---|
| Dividend yield | 0.91% | — |
| Payout ratio | 25.99% | — |
Growth (annualized)
| Metric | MSFT | TSLA |
|---|---|---|
| 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.
Go deeper
Dig into the metrics
Microsoft P/E ratioTesla P/E ratioMicrosoft dividend yieldTesla 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 June 15, 2026.