Which stock is better: AMZN or MSFT?

The comparison between Amazon.com, Inc. (AMZN) and Microsoft Corporation (MSFT) depends on your investment criteria. Compare valuation, profitability, growth, and risk metrics to determine which aligns better with your investment goals.

What is the P/E ratio of AMZN vs MSFT?

AMZN has a P/E ratio of 29.55, while MSFT has a P/E ratio of 25.28. A lower P/E ratio may indicate a more attractive valuation.

What is the market cap difference between AMZN and MSFT?

AMZN has a market cap of approximately 2.3T, while MSFT has a market cap of approximately 3T.

AMZN vs MSFT

Name: AMZN Stock
Brand: Amazon.com, Inc.
Price: 211.74 USD
Availability: InStock

In the past 12 months, AMZN returned +8% while MSFT gained 3%.

Valuation Growth Profitability Balance Sheet Performance

AMZN

Amazon.com, Inc.

$211.74

5.3%(1M)

Market Cap2.3T

Consumer Cyclical

Specialty Retail

USA

P/E Ratio29.55

ROE21.9%

P/B Ratio5.58

Dividend Yield0.0%

MSFT

Microsoft Corporation

$399.95

0.8%(1M)

Market Cap3T

Technology

Software - Infrastructure

USA

P/E Ratio25.28

ROE33.6%

P/B Ratio7.71

Dividend Yield0.9%

Performance Comparison

Historical returns across multiple timeframes

AMZN leads 7/8

AMZN

Amazon.com, Inc.

+8.2%

1Y Return

MSFT

Microsoft Corporation

+2.9%

1Y Return

AMZN

MSFT

Short Term

1M-6M

-3.0%

Medium Term

YTD-1Y

+0.8%

Long Term

3Y-10Y

+262.0%

Valuation

Compare price multiples and valuation ratios

AMZN: 3MSFT: 2

Metric	AMZN	MSFT	Winner
P/E Ratio Price to earnings ratio	29.55	25.28	MSFT
Forward P/E Forward price to earnings ratio	0.00	0.00	Tie
P/S Ratio Price to sales ratio	3.21	9.86	AMZN
P/B Ratio Price to book ratio	5.58	7.71	AMZN
P/FCF Ratio Price to free cash flow ratio	299.00	38.92	MSFT
EV/EBITDA Enterprise value to EBITDA	14.19	16.19	AMZN
PEG Ratio Price/earnings to growth ratio	0.00	0.00	Tie

Profitability

Compare profit margins and returns on capital

AMZN: 0MSFT: 6

Metric	AMZN	MSFT	Winner
Gross Margin Gross profit margin	50.3%	68.6%	MSFT
Operating Margin Operating profit margin	11.2%	46.7%	MSFT
Net Margin Net profit margin	10.8%	39.0%	MSFT
ROE Return on equity	21.9%	33.6%	MSFT
ROA Return on assets	9.5%	17.9%	MSFT
ROIC Return on invested capital	10.7%	21.1%	MSFT

Growth

Compare revenue and earnings growth rates

AMZN: 2MSFT: 4

Metric	AMZN	MSFT	Winner
Revenue Growth (YoY) Year-over-year revenue growth	12.4%	14.9%	MSFT
Revenue Growth (3Y) 3-year revenue CAGR	11.7%	12.4%	MSFT
Revenue Growth (5Y) 5-year revenue CAGR	13.2%	14.5%	MSFT
EPS Growth (YoY) Year-over-year EPS growth	29.7%	15.6%	AMZN
EPS Growth (3Y) 3-year EPS CAGR	0.0%	12.2%	MSFT
EPS Growth (5Y) 5-year EPS CAGR	28.0%	18.8%	AMZN

Balance Sheet & Risk

Compare financial stability and debt levels

AMZN: 0MSFT: 5

Metric	AMZN	MSFT	Winner
Debt/Equity Debt to equity ratio	0.37	0.32	MSFT
Current Ratio Current assets to current liabilities	1.05	1.39	MSFT
Quick Ratio Quick assets to current liabilities	0.88	1.38	MSFT
Interest Coverage EBIT to interest expense	35.17	53.94	MSFT
Beta Stock volatility vs market	1.42	1.11	MSFT

Summary

MSFT wins 3-1

Valuation

AMZN

Profitability

MSFT

Growth

MSFT

Balance Sheet

MSFT

AMZN is more attractively valued. MSFT shows stronger profitability. MSFT demonstrates better growth. MSFT has a stronger balance sheet.

Take Your Analysis Further

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