Microsoft Corporation (MSFT) vs Verizon Communications Inc. (VZ)
A side-by-side comparison of Microsoft Corporation and Verizon Communications Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of September 7, 2026. Differences are shown without an overall score or investment verdict.
Different business models: MSFT is classified in Technology; VZ is classified in Communication Services. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
MSFT
Microsoft Corporation
$492.08TechnologyDelayed quote: Sep 8, 2026, 9:30 AM EDT
VZ
Verizon Communications Inc.
$50.02Communication ServicesDelayed quote: Sep 8, 2026, 9:30 AM EDT
Total return — MSFT vs VZ
growth of $100 · dividends reinvested · last 10yMSFT +886.4% (+25.7%/yr)VZ +64.4% (+5.1%/yr)MSFT compounded faster over this window
Log scale — wide-divergence pair
MSFT VZ
MSFT vs VZ: by the numbers
- •MSFT is the larger company ($3.65T vs $208.86B market cap).
- •VZ trades at the lower trailing earnings multiple (13.06 vs 27.84 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (40.31% vs 11.64% net margin).
- •MSFT grew revenue faster over the past five years (14.57% vs 0.89% CAGR).
- •VZ pays the higher dividend yield (5.57% vs 0.71%).
Metrics side by side
Valuation
| Metric | MSFT | VZ |
|---|---|---|
| P/E ratio | 27.84 | 13.06 |
| Forward P/E | 29.39 | 10.04 |
| P/S ratio | 11.22 | 1.51 |
| P/B ratio | 8.42 | 2.01 |
| EV / EBITDA | 19.78 | 8.32 |
| FCF yield | 1.80% | 10.25% |
Profitability
| Metric | MSFT | VZ |
|---|---|---|
| Gross margin | 67.94% | 45.64% |
| Operating margin | 46.78% | 20.54% |
| Net margin | 40.31% | 11.64% |
| ROE | 30.23% | 15.56% |
| ROIC | 20.90% | 5.84% |
Dividends
| Metric | MSFT | VZ |
|---|---|---|
| Dividend yield | 0.71% | 5.57% |
| Payout ratio | 19.83% | 72.79% |
Growth (annualized)
| Metric | MSFT | VZ |
|---|---|---|
| Revenue CAGR (5Y) | 14.57% | 0.89% |
| EPS CAGR (5Y) | 17.26% | -1.14% |
| FCF CAGR (5Y) | 3.60% | -1.27% |
| Total return CAGR (5Y) | 11.57% | 4.43% |
Frequently asked
- Which has the lower trailing P/E, MSFT or VZ?
- VZ has the lower trailing P/E: MSFT trades at 27.84 and VZ at 13.06. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, MSFT or VZ?
- Over the past five years, MSFT grew revenue faster — MSFT at a 14.57% CAGR versus VZ at 0.89%.
- Does MSFT or VZ pay a bigger dividend?
- MSFT yields 0.71% and VZ yields 5.57% based on trailing dividends and the latest price.
- Is MSFT or VZ more profitable?
- MSFT runs the higher net margin — MSFT at 40.31% versus VZ at 11.64%.
- How have MSFT and VZ total returns compared?
- Over the past 10 years, MSFT delivered 25.57% and VZ delivered 4.99% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Microsoft P/E ratioVerizon Communications P/E ratioMicrosoft dividend yieldVerizon Communications dividend yieldMicrosoft ROEVerizon Communications ROEMicrosoft operating marginVerizon Communications operating marginMicrosoft revenue growthVerizon Communications revenue growthMicrosoft free cash flowVerizon Communications free cash flow
Microsoft & Verizon Communications 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 7, 2026.