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Amazon.com (AMZN) vs. Microsoft (MSFT)

This page compares Amazon.com (AMZN) with Microsoft (MSFT) using performance and risk, profitability, financial strength, growth, dividends, and valuation metrics.

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.

SymbolAMZNMSFT
NameAmazon.com, Inc.Microsoft Corp.
Country/RegionUnited StatesUnited States
GICS SectorConsumer DiscretionaryInformation Technology
GICS Industry GroupConsumer Discretionary Distribution & RetailSoftware & Services
GICS IndustryBroadline RetailSoftware
GICS Sub-IndustryBroadline RetailSystems Software
Market Capitalization2,626.78 billion USD2,996.70 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateMay 15, 1997March 13, 1986
Security TypeCommon StockCommon Stock

Valuation

Price-to-Earnings Ratio (TTM)

Microsoft (MSFT) at 24.01 carries typical industry Price-to-Earnings Ratio (TTM), while Amazon.com (AMZN) at 31.51 sits in the higher-multiple quartile — AMZN carries a higher trailing earnings multiple relative to peers.

AMZN

Consumer Discretionary Distribution & Retail industry group

31.51

Max
53.61
Q3
30.55
Median
19.36
Q1
12.51
Min
1.10

MSFT

Software & Services industry group

24.01

Max
108.25
Q3
55.55
Median
31.70
Q1
15.92
Min
0.36
Amazon.com (AMZN) vs. Microsoft (MSFT): A comparison of their Price-to-Earnings Ratio (TTM) against their respective Consumer Discretionary Distribution & Retail and Software & Services industry group benchmarks.

Price-to-Sales Ratio (TTM)

Both Amazon.com (AMZN) at 3.54 and Microsoft (MSFT) at 9.42 command a richer price per dollar of sales than most peers, sitting in the upper Price-to-Sales Ratio (TTM) quartile of their industries.

AMZN

Consumer Discretionary Distribution & Retail industry group

3.54

Max
3.54
Q3
1.72
Median
0.67
Q1
0.28
Min
0.03

MSFT

Software & Services industry group

9.42

Max
18.52
Q3
9.02
Median
4.01
Q1
2.11
Min
0.02
Amazon.com (AMZN) vs. Microsoft (MSFT): A comparison of their Price-to-Sales Ratio (TTM) against their respective Consumer Discretionary Distribution & Retail and Software & Services industry group benchmarks.

Price-to-Book Ratio (MRQ)

Microsoft (MSFT) at 7.23 is valued about in line with its industry on Price-to-Book Ratio (MRQ), while Amazon.com (AMZN) at 5.94 carries a peer-beating premium to book — AMZN is pricier on assets.

AMZN

Consumer Discretionary Distribution & Retail industry group

5.94

Max
10.54
Q3
5.02
Median
2.14
Q1
1.08
Min
-3.34

MSFT

Software & Services industry group

7.23

Max
17.39
Q3
8.16
Median
4.00
Q1
1.95
Min
-6.56
Amazon.com (AMZN) vs. Microsoft (MSFT): A comparison of their Price-to-Book Ratio (MRQ) against their respective Consumer Discretionary Distribution & Retail and Software & Services industry group benchmarks.

Valuation at a Glance

SymbolAMZNMSFT
Price-to-Earnings Ratio (TTM)31.5124.01
Price-to-Sales Ratio (TTM)3.549.42
Price-to-Book Ratio (MRQ)5.947.23
Free Cash Flow Yield0.37%1.24%

Profitability

Return on Equity (TTM)

Microsoft (MSFT) at 34.01% ranks in the top quartile for Return on Equity (TTM), ahead of Amazon.com (AMZN) at 24.29%, which sits closer to the industry mid-range.

AMZN

Consumer Discretionary Distribution & Retail industry group

24.29%

Max
61.25%
Q3
31.26%
Median
12.94%
Q1
4.48%
Min
-29.94%

MSFT

Software & Services industry group

34.01%

Max
58.77%
Q3
16.77%
Median
5.20%
Q1
-16.00%
Min
-63.05%
Amazon.com (AMZN) vs. Microsoft (MSFT): A comparison of their Return on Equity (TTM) against their respective Consumer Discretionary Distribution & Retail and Software & Services industry group benchmarks.

Net Profit Margin (TTM)

For every dollar of sales, both Amazon.com (AMZN) at 12.22% and Microsoft (MSFT) at 39.34% retain more as net profit than most peers, landing in the top Net Profit Margin (TTM) quartile of their industries.

AMZN

Consumer Discretionary Distribution & Retail industry group

12.22%

Max
20.45%
Q3
8.62%
Median
3.31%
Q1
0.48%
Min
-11.15%

MSFT

Software & Services industry group

39.34%

Max
44.20%
Q3
15.06%
Median
3.32%
Q1
-6.49%
Min
-34.99%
Amazon.com (AMZN) vs. Microsoft (MSFT): A comparison of their Net Profit Margin (TTM) against their respective Consumer Discretionary Distribution & Retail and Software & Services industry group benchmarks.

Operating Profit Margin (TTM)

Both Amazon.com (AMZN) at 13.14% and Microsoft (MSFT) at 46.33% squeeze more operating profit from each sales dollar than most peers, ranking in the top Operating Profit Margin (TTM) quartile of their industries.

AMZN

Consumer Discretionary Distribution & Retail industry group

13.14%

Max
23.15%
Q3
11.26%
Median
4.82%
Q1
1.65%
Min
-8.07%

MSFT

Software & Services industry group

46.33%

Max
60.45%
Q3
16.49%
Median
4.46%
Q1
-12.92%
Min
-54.21%
Amazon.com (AMZN) vs. Microsoft (MSFT): A comparison of their Operating Profit Margin (TTM) against their respective Consumer Discretionary Distribution & Retail and Software & Services industry group benchmarks.

Profitability at a Glance

SymbolAMZNMSFT
Return on Equity (TTM)24.29%34.01%
Return on Assets (TTM)6.85%14.81%
Net Profit Margin (TTM)12.22%39.34%
Operating Profit Margin (TTM)13.14%46.33%
Gross Profit Margin (TTM)50.60%68.31%

Growth

Revenue Growth

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

Revenue Growth at a Glance

SymbolAMZNMSFT
1-Year Revenue Growth12.38%14.93%
3-Year Revenue CAGR11.73%12.42%

EPS Growth

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

EPS Growth at a Glance

SymbolAMZNMSFT
1-Year EPS Growth29.66%15.59%
3-Year EPS CAGR--12.23%

Financial Strength

Current Ratio (MRQ)

Both Amazon.com (AMZN) at 1.18 and Microsoft (MSFT) at 1.28 carry Current Ratio (MRQ) within their industry mid-ranges, suggesting balanced short-term liquidity relative to peers.

AMZN

Consumer Discretionary Distribution & Retail industry group

1.18

Max
2.97
Q3
1.88
Median
1.38
Q1
1.03
Min
0.46

MSFT

Software & Services industry group

1.28

Max
5.55
Q3
2.88
Median
1.73
Q1
1.07
Min
0.03
Amazon.com (AMZN) vs. Microsoft (MSFT): A comparison of their Current Ratio (MRQ) against their respective Consumer Discretionary Distribution & Retail and Software & Services industry group benchmarks.

Debt-to-Equity Ratio (MRQ)

Amazon.com (AMZN) at 0.53 maintains Debt-to-Equity Ratio (MRQ) in the lower-leverage quartile of industry peers, ahead of Microsoft (MSFT) at 0.30, which sits around the industry mid-range.

AMZN

Consumer Discretionary Distribution & Retail industry group

0.53

Max
3.27
Q3
1.82
Median
1.09
Q1
0.72
Min
0.01

MSFT

Software & Services industry group

0.30

Max
2.31
Q3
1.06
Median
0.32
Q1
0.06
Min
0.00
Amazon.com (AMZN) vs. Microsoft (MSFT): A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Consumer Discretionary Distribution & Retail and Software & Services industry group benchmarks.

Financial Strength at a Glance

SymbolAMZNMSFT
Current Ratio (MRQ)1.181.28
Debt-to-Equity Ratio (MRQ)0.530.30
Net Debt / EBITDA0.590.26

Dividends

Dividend Yield (TTM)

Amazon.com (AMZN) pays no dividend (yield 0.00%) — often a deliberate choice to reinvest earnings rather than return cash. Meanwhile Microsoft (MSFT) reports a yield of 0.90%, ranking against industry peers normally.

AMZN

Consumer Discretionary Distribution & Retail industry group

0.00%

Max
5.66%
Q3
2.58%
Median
0.00%
Q1
0.00%
Min
0.00%

MSFT

Software & Services industry group

0.90%

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 (TTM) 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 20.73%, ranking against industry peers normally.

AMZN

Consumer Discretionary Distribution & Retail industry group

0.00%

Max
78.51%
Q3
33.85%
Median
0.00%
Q1
0.00%
Min
0.00%

MSFT

Software & Services industry group

20.73%

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 Payout Ratio (TTM) against their respective Consumer Discretionary Distribution & Retail and Software & Services industry group benchmarks.

Dividends at a Glance

SymbolAMZNMSFT
Dividend Yield (TTM)0.00%0.90%
Dividend Payout Ratio (TTM)0.00%20.73%

Performance & Risk

AMZN
MSFT
Loading price history…
Amazon.com (AMZN) vs. Microsoft (MSFT): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Performance & Risk at a Glance

SymbolAMZNMSFT
1-Year Return14.82%-11.77%
1-Year Volatility30.15%25.35%
Beta1.461.12
3-Month Avg. Volume44.44M34.45M