AAPL vs. MSFT: Apple vs. Microsoft Stock Comparison

August 10, 2026

How do Apple (AAPL) and Microsoft (MSFT) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Apple (AAPL) and Microsoft (MSFT) share the Information Technology sector but sit in different industry groups — AAPL in Technology Hardware & Equipment and MSFT in Software & Services.

Company profile comparison for Apple (AAPL) and Microsoft (MSFT)
Profile Item	AAPL	MSFT
Name	Apple Inc.	Microsoft Corporation
Country/Region	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	4,572.79 billion USD	3,712.70 billion USD
Currency	USD	USD
Exchange	Nasdaq	Nasdaq
Listing Date	December 12, 1980	March 13, 1986
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

AAPL

MSFT

GSPC

Apple (AAPL) vs. Microsoft (MSFT), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Apple (AAPL) and Microsoft (MSFT). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Apple (AAPL) and Microsoft (MSFT). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Apple (AAPL) and Microsoft (MSFT)
Metric	AAPL	MSFT
Total Return (1Y)	42.97%	-3.24%
Total Return (3Y, Annualized)	21.11%	15.74%
Total Return (5Y, Annualized)	17.04%	12.47%

Risk Profile

Drawdown History

AAPL

MSFT

GSPC

Apple (AAPL) vs. Microsoft (MSFT), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Apple (AAPL) and Microsoft (MSFT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Apple (AAPL) and Microsoft (MSFT)
Metric	AAPL	MSFT
Volatility (1Y, Annualized)	25.28%	32.09%
Beta (5Y)	1.08	1.11
Max Drawdown (5Y)	-33.36%	-37.15%
Avg. Volume (3M)	56.56M	41.13M

Risk-Adjusted Performance

Risk-Return Positioning

AAPL and MSFT are plotted by 1-year volatility (risk) and 1-year return. Each dashed Capital Allocation Line uses that stock's own industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Apple (AAPL) and Microsoft (MSFT)
Metric	AAPL	MSFT
Sharpe Ratio (1Y)	1.54	-0.23
Sortino Ratio (1Y)	2.30	-0.35

Profitability

ROE (TTM)

Both companies show strong equity returns, but Apple (AAPL) at 148.75% is the standout with ROE above its industry range; Microsoft (MSFT) at 34.04% also sits in the top quartile.

AAPL

Technology Hardware & Equipment industry group

148.75%

AAPL: 148.75%
Max: 44.01%
Q3: 18.40%
Median: 10.42%
Q1: 1.19%
Min: -24.11%

MSFT

Software & Services industry group

34.04%

Max: 62.95%
MSFT: 34.04%
Q3: 17.89%
Median: 5.58%
Q1: -13.18%
Min: -54.94%

Apple (AAPL) vs. Microsoft (MSFT): A comparison of their ROE against their respective Technology Hardware & Equipment and Software & Services industry group benchmarks.

Net Margin (TTM)

For every dollar of sales, both Apple (AAPL) at 27.62% and Microsoft (MSFT) at 40.31% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

AAPL

Technology Hardware & Equipment industry group

27.62%

AAPL: 27.62%
Max: 27.62%
Q3: 11.20%
Median: 4.01%
Q1: 0.00%
Min: -11.93%

MSFT

Software & Services industry group

40.31%

Max: 41.99%
MSFT: 40.31%
Q3: 14.87%
Median: 4.36%
Q1: -4.64%
Min: -30.39%

Apple (AAPL) vs. Microsoft (MSFT): A comparison of their net margin against their respective Technology Hardware & Equipment and Software & Services industry group benchmarks.

Operating Margin (TTM)

Both Apple (AAPL) at 32.62% and Microsoft (MSFT) at 45.11% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

AAPL

Technology Hardware & Equipment industry group

32.62%

Max: 36.90%
AAPL: 32.62%
Q3: 17.45%
Median: 7.35%
Q1: 3.09%
Min: -18.29%

MSFT

Software & Services industry group

45.11%

Max: 47.12%
MSFT: 45.11%
Q3: 15.75%
Median: 4.88%
Q1: -7.54%
Min: -38.00%

Apple (AAPL) vs. Microsoft (MSFT): A comparison of their operating margin against their respective Technology Hardware & Equipment and Software & Services industry group benchmarks.

Profitability Metrics

Profitability metrics for Apple (AAPL) and Microsoft (MSFT)
Metric	AAPL	MSFT
ROE (TTM)	148.75%	34.04%
ROA (TTM)	27.08%	14.09%
Net Margin (TTM)	27.62%	40.31%
Operating Margin (TTM)	32.62%	45.11%
Gross Margin (TTM)	48.65%	67.94%

Growth

Revenue Growth

Both Apple (AAPL) at 6.43% and Microsoft (MSFT) at 17.79% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Apple (AAPL) vs. Microsoft (MSFT): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Apple (AAPL) at 22.70% and Microsoft (MSFT) at 31.60% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

Apple (AAPL) vs. Microsoft (MSFT): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Apple (AAPL) and Microsoft (MSFT)
Metric	AAPL	MSFT
Revenue Growth (YoY)	6.43%	17.79%
Revenue Growth (3Y CAGR)	1.81%	16.12%
EPS Growth (YoY)	22.70%	31.60%
EPS Growth (3Y CAGR)	6.88%	22.86%

Financial Strength

Current Ratio (MRQ)

Microsoft (MSFT) at 1.23 keeps current ratio within its industry’s typical mid-range, while Apple (AAPL) at 1.00 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for AAPL.

AAPL

Technology Hardware & Equipment industry group

1.00

Max: 4.95
Q3: 3.00
Median: 1.95
Q1: 1.30
AAPL: 1.00
Min: 0.37

MSFT

Software & Services industry group

1.23

Max: 5.55
Q3: 2.88
Median: 1.68
MSFT: 1.23
Q1: 1.03
Min: 0.03

Apple (AAPL) vs. Microsoft (MSFT): A comparison of their current ratio against their respective Technology Hardware & Equipment and Software & Services industry group benchmarks.

Debt / Equity (MRQ)

Both Apple (AAPL) at 0.78 and Microsoft (MSFT) at 0.29 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

AAPL

Technology Hardware & Equipment industry group

0.78

Max: 2.20
Q3: 0.91
AAPL: 0.78
Median: 0.28
Q1: 0.05
Min: 0.00

MSFT

Software & Services industry group

0.29

Max: 2.62
Q3: 1.15
Median: 0.33
MSFT: 0.29
Q1: 0.06
Min: 0.00

Apple (AAPL) vs. Microsoft (MSFT): A comparison of their debt-to-equity ratio against their respective Technology Hardware & Equipment and Software & Services industry group benchmarks.

Financial Strength Metrics

Financial strength metrics for Apple (AAPL) and Microsoft (MSFT)
Metric	AAPL	MSFT
Current Ratio (MRQ)	1.00	1.23
Debt / Equity (MRQ)	0.78	0.29
Net Debt / EBITDA	0.13	0.27

Dividends

Dividend Yield (TTM)

Apple (AAPL) at 0.34% pays an industry-typical yield; Microsoft (MSFT) at 0.73% is above its entire peer range — the higher number, but one that calls for a look at payout sustainability before treating it as an advantage.

AAPL

Technology Hardware & Equipment industry group

0.34%

Max: 0.83%
AAPL: 0.34%
Q3: 0.34%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

MSFT

Software & Services industry group

0.73%

MSFT: 0.73%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Apple (AAPL) vs. Microsoft (MSFT): A comparison of their dividend yield against their respective Technology Hardware & Equipment and Software & Services industry group benchmarks.

Dividend Payout Ratio (TTM)

Apple (AAPL) at 12.04% keeps its payout in the industry’s typical band, while Microsoft (MSFT) at 19.83% pays out more than any of its peers — the most stretched cover in its group.

AAPL

Technology Hardware & Equipment industry group

12.04%

Max: 43.66%
Q3: 17.57%
AAPL: 12.04%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

MSFT

Software & Services industry group

19.83%

MSFT: 19.83%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Apple (AAPL) vs. Microsoft (MSFT): A comparison of their payout ratio against their respective Technology Hardware & Equipment and Software & Services industry group benchmarks.

Dividend Metrics

Dividend metrics for Apple (AAPL) and Microsoft (MSFT)
Metric	AAPL	MSFT
Dividend Yield (TTM)	0.34%	0.73%
Dividend Payout Ratio (TTM)	12.04%	19.83%

Valuation

P/E Ratio (TTM)

Both Apple (AAPL) at 35.85 and Microsoft (MSFT) at 27.87 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

AAPL

Technology Hardware & Equipment industry group

35.85

Max: 104.64
Q3: 61.25
Median: 36.79
AAPL: 35.85
Q1: 24.13
Min: 10.43

MSFT

Software & Services industry group

27.87

Max: 133.34
Q3: 65.90
Median: 34.61
MSFT: 27.87
Q1: 17.12
Min: 0.37

Apple (AAPL) vs. Microsoft (MSFT): A comparison of their P/E ratio against their respective Technology Hardware & Equipment and Software & Services industry group benchmarks.

P/S Ratio (TTM)

Both Apple (AAPL) at 9.80 and Microsoft (MSFT) at 11.19 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.

AAPL

Technology Hardware & Equipment industry group

9.80

Max: 15.76
AAPL: 9.80
Q3: 7.67
Median: 3.31
Q1: 1.48
Min: 0.00

MSFT

Software & Services industry group

11.19

Max: 19.74
MSFT: 11.19
Q3: 9.68
Median: 4.31
Q1: 2.31
Min: 0.02

Apple (AAPL) vs. Microsoft (MSFT): A comparison of their P/S ratio against their respective Technology Hardware & Equipment and Software & Services industry group benchmarks.

P/B Ratio (MRQ)

Microsoft (MSFT) at 8.39 sits near its industry’s typical P/B ratio, while Apple (AAPL) at 42.57 prices above its benchmark range — AAPL looks rich relative to book.

AAPL

Technology Hardware & Equipment industry group

42.57

AAPL: 42.57
Max: 16.24
Q3: 8.74
Median: 4.09
Q1: 2.09
Min: -1.33

MSFT

Software & Services industry group

8.39

Max: 19.84
Q3: 9.14
MSFT: 8.39
Median: 4.33
Q1: 2.00
Min: -8.65

Apple (AAPL) vs. Microsoft (MSFT): A comparison of their P/B ratio against their respective Technology Hardware & Equipment and Software & Services industry group benchmarks.

Valuation Metrics

Valuation metrics for Apple (AAPL) and Microsoft (MSFT)
Metric	AAPL	MSFT
P/E Ratio (TTM)	35.85	27.87
P/S Ratio (TTM)	9.80	11.19
P/B Ratio (MRQ)	42.57	8.39
Free Cash Flow Yield (TTM)	2.36%	0.45%