AAPL vs. MSFT: A Head-to-Head Stock Comparison
Here’s a clear look at AAPL and MSFT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | AAPL | MSFT |
|---|---|---|
| Company Name | Apple Inc. | Microsoft Corporation |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Technology Hardware & Equipment | Software & Services |
| GICS Industry | Technology Hardware, Storage & Peripherals | Software |
| GICS Sub-Industry | Technology Hardware, Storage & Peripherals | Systems Software |
| Market Capitalization | 4,389.61 billion USD | 3,041.42 billion USD |
| Currency | USD | USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | December 12, 1980 | March 13, 1986 |
| Security Type | Common Stock | Common Stock |
AAPL’s market capitalization stands at 4,389.61 billion USD, while MSFT’s is 3,041.42 billion USD, indicating their market valuations are broadly comparable.
Historical Performance
This chart compares the performance of AAPL and MSFT by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | AAPL | MSFT |
|---|---|---|
| 5-Day Price Return | 3.98% | -1.37% |
| 13-Week Price Return | 9.20% | 1.25% |
| 26-Week Price Return | 10.64% | -17.64% |
| 52-Week Price Return | 40.36% | -9.61% |
| Month-to-Date Return | 10.14% | 0.40% |
| Year-to-Date Return | 9.94% | -15.34% |
| 10-Day Avg. Volume | 56.47M | 31.47M |
| 3-Month Avg. Volume | 47.46M | 35.67M |
| 3-Month Volatility | 25.42% | 26.69% |
| Beta | 1.07 | 1.08 |
With betas of 1.07 for AAPL and 1.08 for MSFT, both stocks show similar sensitivity to overall market movements.
Profitability
Return on Equity (TTM)
AAPL
146.69%
Technology Hardware, Storage & Peripherals Industry
- Max
- 172.59%
- Q3
- 97.26%
- Median
- 15.38%
- Q1
- -4.48%
- Min
- -107.19%
In the upper quartile for the Technology Hardware, Storage & Peripherals industry, AAPL’s Return on Equity of 146.69% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
MSFT
33.13%
Software Industry
- Max
- 62.31%
- Q3
- 22.20%
- Median
- 7.70%
- Q1
- -6.27%
- Min
- -44.49%
In the upper quartile for the Software industry, MSFT’s Return on Equity of 33.13% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
AAPL
27.15%
Technology Hardware, Storage & Peripherals Industry
- Max
- 27.15%
- Q3
- 18.95%
- Median
- 4.80%
- Q1
- -3.11%
- Min
- -32.52%
A Net Profit Margin of 27.15% places AAPL in the upper quartile for the Technology Hardware, Storage & Peripherals industry, signifying strong profitability and more effective cost management than most of its peers.
MSFT
39.34%
Software Industry
- Max
- 44.20%
- Q3
- 17.96%
- Median
- 8.48%
- Q1
- -3.30%
- Min
- -34.99%
A Net Profit Margin of 39.34% places MSFT in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
AAPL
32.64%
Technology Hardware, Storage & Peripherals Industry
- Max
- 32.64%
- Q3
- 17.56%
- Median
- 4.99%
- Q1
- -2.42%
- Min
- -13.71%
An Operating Profit Margin of 32.64% places AAPL in the upper quartile for the Technology Hardware, Storage & Peripherals industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
MSFT
46.75%
Software Industry
- Max
- 50.37%
- Q3
- 18.75%
- Median
- 6.25%
- Q1
- -3.70%
- Min
- -34.31%
An Operating Profit Margin of 46.75% places MSFT in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | AAPL | MSFT |
|---|---|---|
| Return on Equity (TTM) | 146.69% | 33.13% |
| Return on Assets (TTM) | 34.02% | 19.15% |
| Net Profit Margin (TTM) | 27.15% | 39.34% |
| Operating Profit Margin (TTM) | 32.64% | 46.75% |
| Gross Profit Margin (TTM) | 47.86% | 68.31% |
Financial Strength
Current Ratio (MRQ)
AAPL
1.07
Technology Hardware, Storage & Peripherals Industry
- Max
- 3.31
- Q3
- 2.78
- Median
- 1.44
- Q1
- 1.10
- Min
- 0.76
AAPL’s Current Ratio of 1.07 falls into the lower quartile for the Technology Hardware, Storage & Peripherals industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
MSFT
1.28
Software Industry
- Max
- 4.59
- Q3
- 2.54
- Median
- 1.66
- Q1
- 1.12
- Min
- 0.47
MSFT’s Current Ratio of 1.28 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
AAPL
0.80
Technology Hardware, Storage & Peripherals Industry
- Max
- 2.15
- Q3
- 1.41
- Median
- 0.56
- Q1
- 0.09
- Min
- 0.00
AAPL’s Debt-to-Equity Ratio of 0.80 is typical for the Technology Hardware, Storage & Peripherals industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
MSFT
0.25
Software Industry
- Max
- 2.69
- Q3
- 1.13
- Median
- 0.33
- Q1
- 0.00
- Min
- 0.00
MSFT’s Debt-to-Equity Ratio of 0.25 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
AAPL
622.51
Technology Hardware, Storage & Peripherals Industry
- Max
- 21.34
- Q3
- 13.02
- Median
- 4.08
- Q1
- -0.99
- Min
- -2.95
With an Interest Coverage Ratio of 622.51, AAPL demonstrates a superior capacity to service its debt, placing it well above the typical range for the Technology Hardware, Storage & Peripherals industry. This stems from either robust earnings or a conservative debt load.
MSFT
891.80
Software Industry
- Max
- 45.58
- Q3
- 11.88
- Median
- -0.62
- Q1
- -14.80
- Min
- -53.00
With an Interest Coverage Ratio of 891.80, MSFT demonstrates a superior capacity to service its debt, placing it well above the typical range for the Software industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | AAPL | MSFT |
|---|---|---|
| Current Ratio (MRQ) | 1.07 | 1.28 |
| Quick Ratio (MRQ) | 1.02 | 1.27 |
| Debt-to-Equity Ratio (MRQ) | 0.80 | 0.25 |
| Interest Coverage Ratio (TTM) | 622.51 | 891.80 |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | AAPL | MSFT |
|---|---|---|
| Revenue Growth (MRQ vs Prior YoY) | 16.60% | 18.30% |
| Revenue Growth (TTM vs Prior YoY) | 12.76% | 17.87% |
| 3-Year Revenue CAGR | 1.81% | 12.42% |
| 5-Year Revenue CAGR | 8.68% | 14.52% |
EPS Growth
EPS Growth at a Glance
| Symbol | AAPL | MSFT |
|---|---|---|
| EPS Growth (MRQ vs Prior YoY) | 22.04% | 23.32% |
| EPS Growth (TTM vs Prior YoY) | 29.01% | 29.75% |
| 3-Year EPS CAGR | 6.89% | 12.24% |
| 5-Year EPS CAGR | 17.91% | 18.80% |
Dividend
Dividend Yield (TTM)
AAPL
0.35%
Technology Hardware, Storage & Peripherals Industry
- Max
- 1.81%
- Q3
- 1.62%
- Median
- 0.28%
- Q1
- 0.00%
- Min
- 0.00%
AAPL’s Dividend Yield of 0.35% is consistent with its peers in the Technology Hardware, Storage & Peripherals industry, providing a dividend return that is standard for its sector.
MSFT
0.86%
Software Industry
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MSFT’s Dividend Yield of 0.86% is exceptionally high, placing it well above the typical range for the Software industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
Dividend Payout Ratio (TTM)
AAPL
12.69%
Technology Hardware, Storage & Peripherals Industry
- Max
- 66.42%
- Q3
- 36.56%
- Median
- 8.31%
- Q1
- 0.00%
- Min
- 0.00%
AAPL’s Dividend Payout Ratio of 12.69% is within the typical range for the Technology Hardware, Storage & Peripherals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
MSFT
20.65%
Software Industry
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
At 20.65%, MSFT’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Software industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.
Dividend at a Glance
| Symbol | AAPL | MSFT |
|---|---|---|
| Dividend Yield (TTM) | 0.35% | 0.86% |
| Dividend Payout Ratio (TTM) | 12.69% | 20.65% |
Valuation
Price-to-Earnings Ratio (TTM)
AAPL
36.02
Technology Hardware, Storage & Peripherals Industry
- Max
- 75.88
- Q3
- 50.67
- Median
- 26.16
- Q1
- 20.25
- Min
- 7.55
AAPL’s P/E Ratio of 36.02 is within the middle range for the Technology Hardware, Storage & Peripherals industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
MSFT
23.88
Software Industry
- Max
- 97.74
- Q3
- 59.09
- Median
- 28.54
- Q1
- 14.55
- Min
- 0.38
MSFT’s P/E Ratio of 23.88 is within the middle range for the Software industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
AAPL
9.78
Technology Hardware, Storage & Peripherals Industry
- Max
- 16.39
- Q3
- 8.07
- Median
- 2.23
- Q1
- 0.83
- Min
- 0.05
AAPL’s P/S Ratio of 9.78 is in the upper echelon for the Technology Hardware, Storage & Peripherals industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
MSFT
9.40
Software Industry
- Max
- 14.62
- Q3
- 7.88
- Median
- 3.94
- Q1
- 2.25
- Min
- 0.36
MSFT’s P/S Ratio of 9.40 is in the upper echelon for the Software industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio (MRQ)
AAPL
34.00
Technology Hardware, Storage & Peripherals Industry
- Max
- 16.66
- Q3
- 9.86
- Median
- 2.57
- Q1
- 1.16
- Min
- 0.46
At 34.00, AAPL’s P/B Ratio is at an extreme premium to the Technology Hardware, Storage & Peripherals industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
MSFT
6.63
Software Industry
- Max
- 20.48
- Q3
- 10.52
- Median
- 4.84
- Q1
- 2.66
- Min
- 0.32
MSFT’s P/B Ratio of 6.63 is within the conventional range for the Software industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | AAPL | MSFT |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 36.02 | 23.88 |
| Price-to-Sales Ratio (TTM) | 9.78 | 9.40 |
| Price-to-Book Ratio (MRQ) | 34.00 | 6.63 |
| Price-to-Free Cash Flow Ratio (TTM) | 34.18 | 41.01 |