Microsoft Corporation (MSFT) vs Verizon Communications Inc. (VZ)
MSFT leads on 9 of 16 compared metrics, though VZ is the cheaper stock.
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 June 13, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
MSFT
Microsoft Corporation
$390.74Technology
VZ
Verizon Communications Inc.
$48.11Communication Services
Total return — MSFT vs VZ
growth of $100 · last 30yMSFT +4915.9%VZ +70.2%MSFT compounded faster
Log scale — wide-divergence pair
MSFT VZ
MSFT vs VZ: by the numbers
- •MSFT is the larger company ($2.90T vs $200.89B market cap).
- •VZ trades at the lower earnings multiple (11.73 vs 23.26 P/E).
- •MSFT converts more revenue to profit (39.34% vs 12.46% net margin).
- •MSFT grew revenue faster over the past five years (14.75% vs 1.44% CAGR).
- •VZ pays the higher dividend yield (5.75% vs 0.91%).
Which is better, MSFT or VZ?
Metric tally: MSFT 9 · VZ 7It depends on what you're optimizing for:
ValueVZ(lower P/E)
GrowthMSFT(faster 5Y revenue CAGR)
IncomeVZ(higher dividend yield)
QualityMSFT(higher ROIC)
Valuation
| Metric | MSFT | VZ |
|---|---|---|
| P/E ratio | 23.26 | 11.73● |
| Forward P/E | 20.11 | 9.17● |
| P/S ratio | 9.14 | 1.46● |
| P/B ratio | 7.02 | 1.96● |
| PEG ratio | 2.34 | — |
| EV / EBITDA | 14.60 | 8.02● |
| FCF yield | 2.51% | 9.90%● |
Profitability
| Metric | MSFT | VZ |
|---|---|---|
| Gross margin | 68.31%● | 58.85% |
| Operating margin | 46.80%● | 21.22% |
| Net margin | 39.34%● | 12.46% |
| ROE | 30.22%● | 16.78% |
| ROIC | 21.63%● | 6.22% |
Dividends
| Metric | MSFT | VZ |
|---|---|---|
| Dividend yield | 0.91% | 5.75%● |
| Payout ratio | 25.99% | 68.10% |
Growth (annualized)
| Metric | MSFT | VZ |
|---|---|---|
| Revenue CAGR (5Y) | 14.75%● | 1.44% |
| EPS CAGR (5Y) | 18.68%● | -1.14% |
| FCF CAGR (5Y) | 6.27%● | -1.27% |
| Total return CAGR (5Y) | 9.56%● | 2.76% |
Frequently asked
- Which is better, MSFT or VZ?
- It depends on your goal. value: VZ (lower P/E); growth: MSFT (faster 5Y revenue CAGR); income: VZ (higher dividend yield); quality: MSFT (higher ROIC). Across all compared metrics, MSFT leads 9 to 7.
- Is MSFT or VZ cheaper?
- On trailing earnings, VZ is cheaper: MSFT trades at a 23.26 P/E and VZ at 11.73.
- Which has grown faster, MSFT or VZ?
- Over the past five years, MSFT grew revenue faster — MSFT at a 14.75% CAGR versus VZ at 1.44%.
- Does MSFT or VZ pay a bigger dividend?
- MSFT yields 0.91% and VZ yields 5.75% based on trailing dividends and the latest price.
- Is MSFT or VZ more profitable?
- MSFT runs the higher net margin — MSFT at 39.34% versus VZ at 12.46%.
- Which has been the better investment, MSFT or VZ?
- Over the past 10-year, MSFT delivered the higher annualized total return — MSFT at 23.98% versus VZ at 4.53%. 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 June 13, 2026.