AMZN vs. MSFT: Amazon.com vs. Microsoft Stock Comparison

October 26, 2026

How do Amazon.com (AMZN) 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

Amazon.com (AMZN) is classified in the Consumer Discretionary sector (Consumer Discretionary Distribution & Retail), whereas Microsoft (MSFT) belongs to Information Technology (Software & Services) — their GICS classifications point to very different parts of the market.

Company profile comparison for Amazon.com (AMZN) and Microsoft (MSFT)
Profile Item	AMZN	MSFT
Name	Amazon.com Inc.	Microsoft Corporation Common Stock
Country/Region	United States	United States
GICS Sector	Consumer Discretionary	Information Technology
GICS Industry Group	Consumer Discretionary Distribution & Retail	Software & Services
GICS Industry	Broadline Retail	Software
GICS Sub-Industry	Broadline Retail	Systems Software
Market Capitalization	2,675.01 billion USD	3,894.77 billion USD
Currency	USD	USD
Exchange	Nasdaq	Nasdaq
Listing Date	May 15, 1997	March 13, 1986
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

AMZN

MSFT

GSPC

Amazon.com (AMZN) 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 Amazon.com (AMZN) and Microsoft (MSFT). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Amazon.com (AMZN) and Microsoft (MSFT)
Metric	AMZN	MSFT
Total Return (1Y)	12.17%	1.59%
Total Return (3Y, Annualized)	25.14%	17.69%
Total Return (5Y, Annualized)	8.26%	12.07%

Risk Profile

Drawdown History

AMZN

MSFT

GSPC

Amazon.com (AMZN) 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 Amazon.com (AMZN) and Microsoft (MSFT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Amazon.com (AMZN) and Microsoft (MSFT)
Metric	AMZN	MSFT
Volatility (1Y, Annualized)	34.77%	32.98%
Beta (5Y)	1.49	1.05
Max Drawdown (5Y)	-55.73%	-37.15%
Avg. Volume (3M)	39.04M	26.02M

Risk-Adjusted Performance

Risk-Return Positioning

AMZN 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 Amazon.com (AMZN) and Microsoft (MSFT)
Metric	AMZN	MSFT
Sharpe Ratio (1Y)	0.22	-0.09
Sortino Ratio (1Y)	0.37	-0.13

Profitability

ROE (TTM)

Both Amazon.com (AMZN) at 30.56% and Microsoft (MSFT) at 34.04% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

AMZN

Consumer Discretionary Distribution & Retail industry group

30.56%

Max: 62.17%
AMZN: 30.56%
Q3: 30.47%
Median: 14.86%
Q1: 6.52%
Min: -20.00%

MSFT

Software & Services industry group

34.04%

Max: 53.85%
MSFT: 34.04%
Q3: 18.22%
Median: 6.15%
Q1: -10.59%
Min: -52.18%

Amazon.com (AMZN) vs. Microsoft (MSFT): A comparison of their ROE against their respective Consumer Discretionary Distribution & Retail and Software & Services industry group benchmarks.

Net Margin (TTM)

For every dollar of sales, both Amazon.com (AMZN) at 17.44% and Microsoft (MSFT) at 40.31% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

AMZN

Consumer Discretionary Distribution & Retail industry group

17.44%

Max: 18.57%
AMZN: 17.44%
Q3: 8.30%
Median: 3.37%
Q1: 1.06%
Min: -9.41%

MSFT

Software & Services industry group

40.31%

Max: 41.43%
MSFT: 40.31%
Q3: 15.53%
Median: 4.63%
Q1: -5.46%
Min: -30.95%

Amazon.com (AMZN) vs. Microsoft (MSFT): A comparison of their net margin against their respective Consumer Discretionary Distribution & Retail and Software & Services industry group benchmarks.

Operating Margin (TTM)

Both Amazon.com (AMZN) at 13.69% 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.

AMZN

Consumer Discretionary Distribution & Retail industry group

13.69%

Max: 21.57%
AMZN: 13.69%
Q3: 11.49%
Median: 6.15%
Q1: 2.69%
Min: -6.28%

MSFT

Software & Services industry group

45.11%

Max: 47.12%
MSFT: 45.11%
Q3: 16.11%
Median: 5.30%
Q1: -5.81%
Min: -34.92%

Amazon.com (AMZN) vs. Microsoft (MSFT): A comparison of their operating margin against their respective Consumer Discretionary Distribution & Retail and Software & Services industry group benchmarks.

Profitability Metrics

Profitability metrics for Amazon.com (AMZN) and Microsoft (MSFT)
Metric	AMZN	MSFT
ROE (TTM)	30.56%	34.04%
ROA (TTM)	6.59%	14.09%
Net Margin (TTM)	17.44%	40.31%
Operating Margin (TTM)	13.69%	45.11%
Gross Margin (TTM)	50.77%	67.94%

Growth

Revenue Growth

Amazon.com (AMZN) at 12.38% sits in the top revenue growth quartile, while Microsoft (MSFT) at 17.79% is closer to the peer norm — faster top-line expansion for AMZN.

Amazon.com (AMZN) vs. Microsoft (MSFT): A comparison of their Revenue Growth across different time periods.

EPS Growth

Amazon.com (AMZN) at 29.66% sits in the top EPS growth quartile, while Microsoft (MSFT) at 31.60% is closer to the peer norm — faster per-share earnings growth for AMZN.

Amazon.com (AMZN) vs. Microsoft (MSFT): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Amazon.com (AMZN) and Microsoft (MSFT)
Metric	AMZN	MSFT
Revenue Growth (YoY)	12.38%	17.79%
Revenue Growth (3Y CAGR)	11.73%	16.12%
EPS Growth (YoY)	29.66%	31.60%
EPS Growth (3Y CAGR)	--	22.86%

Financial Strength

Current Ratio (MRQ)

Both Amazon.com (AMZN) at 1.03 and Microsoft (MSFT) at 1.23 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

AMZN

Consumer Discretionary Distribution & Retail industry group

1.03

Max: 2.62
Q3: 1.79
Median: 1.36
AMZN: 1.03
Q1: 1.02
Min: 0.49

MSFT

Software & Services industry group

1.23

Max: 5.11
Q3: 2.74
Median: 1.62
MSFT: 1.23
Q1: 1.01
Min: 0.03

Amazon.com (AMZN) vs. Microsoft (MSFT): A comparison of their current ratio against their respective Consumer Discretionary Distribution & Retail and Software & Services industry group benchmarks.

Debt / Equity (MRQ)

Amazon.com (AMZN) at 0.46 keeps leverage in the lower industry quartile, while Microsoft (MSFT) at 0.29 runs a more typical debt-to-equity mix.

AMZN

Consumer Discretionary Distribution & Retail industry group

0.46

Max: 3.93
Q3: 2.05
Median: 1.25
Q1: 0.71
AMZN: 0.46
Min: 0.01

MSFT

Software & Services industry group

0.29

Max: 2.52
Q3: 1.15
Median: 0.39
MSFT: 0.29
Q1: 0.06
Min: 0.00

Amazon.com (AMZN) vs. Microsoft (MSFT): A comparison of their debt-to-equity ratio against their respective Consumer Discretionary Distribution & Retail and Software & Services industry group benchmarks.

Financial Strength Metrics

Financial strength metrics for Amazon.com (AMZN) and Microsoft (MSFT)
Metric	AMZN	MSFT
Current Ratio (MRQ)	1.03	1.23
Debt / Equity (MRQ)	0.46	0.29
Net Debt / EBITDA	0.76	0.27

Dividends

Dividend Yield (TTM)

Amazon.com (AMZN) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Microsoft (MSFT) reports a yield of 0.70%, ranking against industry peers normally.

AMZN

Consumer Discretionary Distribution & Retail industry group

0.00%

Max: 5.34%
Q3: 2.62%
AMZN: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

MSFT

Software & Services industry group

0.70%

MSFT: 0.70%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Amazon.com (AMZN) vs. Microsoft (MSFT): A comparison of their dividend yield against their respective Consumer Discretionary Distribution & Retail and Software & Services industry group benchmarks.

Dividend Payout Ratio (TTM)

Amazon.com (AMZN) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Microsoft (MSFT) reports a payout of 19.83%, ranking against industry peers normally.

AMZN

Consumer Discretionary Distribution & Retail industry group

0.00%

Max: 72.73%
Q3: 31.36%
AMZN: 0.00%
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%

Amazon.com (AMZN) vs. Microsoft (MSFT): A comparison of their payout ratio against their respective Consumer Discretionary Distribution & Retail and Software & Services industry group benchmarks.

Dividend Metrics

Dividend metrics for Amazon.com (AMZN) and Microsoft (MSFT)
Metric	AMZN	MSFT
Dividend Yield (TTM)	0.00%	0.70%
Dividend Payout Ratio (TTM)	0.00%	19.83%

Valuation

P/E Ratio (TTM)

Both Amazon.com (AMZN) at 19.95 and Microsoft (MSFT) at 29.22 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

AMZN

Consumer Discretionary Distribution & Retail industry group

19.95

Max: 39.05
Q3: 25.20
AMZN: 19.95
Median: 18.67
Q1: 12.65
Min: 4.22

MSFT

Software & Services industry group

29.22

Max: 124.02
Q3: 61.05
Median: 32.71
MSFT: 29.22
Q1: 18.80
Min: 7.09

Amazon.com (AMZN) vs. Microsoft (MSFT): A comparison of their P/E ratio against their respective Consumer Discretionary Distribution & Retail and Software & Services industry group benchmarks.

P/S Ratio (TTM)

Both Amazon.com (AMZN) at 3.45 and Microsoft (MSFT) at 11.74 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.

AMZN

Consumer Discretionary Distribution & Retail industry group

3.45

Max: 3.92
AMZN: 3.45
Q3: 1.79
Median: 0.69
Q1: 0.27
Min: 0.03

MSFT

Software & Services industry group

11.74

Max: 17.89
MSFT: 11.74
Q3: 9.22
Median: 4.67
Q1: 2.41
Min: 0.02

Amazon.com (AMZN) vs. Microsoft (MSFT): A comparison of their P/S ratio against their respective Consumer Discretionary Distribution & Retail and Software & Services industry group benchmarks.

P/B Ratio (MRQ)

On P/B ratio, both Amazon.com (AMZN) at 4.85 and Microsoft (MSFT) at 8.81 are valued close to their industries’ norm against book — neither stands out from peers.

AMZN

Consumer Discretionary Distribution & Retail industry group

4.85

Max: 10.32
Q3: 4.92
AMZN: 4.85
Median: 1.89
Q1: 1.03
Min: -4.01

MSFT

Software & Services industry group

8.81

Max: 21.76
Q3: 10.03
MSFT: 8.81
Median: 4.84
Q1: 2.03
Min: -4.30

Amazon.com (AMZN) vs. Microsoft (MSFT): A comparison of their P/B ratio against their respective Consumer Discretionary Distribution & Retail and Software & Services industry group benchmarks.

Valuation Metrics

Valuation metrics for Amazon.com (AMZN) and Microsoft (MSFT)
Metric	AMZN	MSFT
P/E Ratio (TTM)	19.95	29.22
P/S Ratio (TTM)	3.45	11.74
P/B Ratio (MRQ)	4.85	8.81
Free Cash Flow Yield (TTM)	0.12%	0.42%