AMZN vs. MSFT: A Head-to-Head Stock Comparison
Here's a clear look at AMZN and MSFT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | AMZN | MSFT |
|---|---|---|
| Company Name | Amazon.com, Inc. | Microsoft Corporation |
| Country | 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 | 2,672.43 billion USD | 3,056.34 billion USD |
| Currency | USD | USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | May 15, 1997 | March 13, 1986 |
| Security Type | Common Stock | Common Stock |
AMZN's market capitalization stands at 2,672.43 billion USD, while MSFT's is 3,056.34 billion USD, indicating their market valuations are broadly comparable.
Historical Performance
This chart compares the performance of AMZN 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 | AMZN | MSFT |
|---|---|---|
| 5-Day Price Return | 6.36% | 10.23% |
| 13-Week Price Return | 0.82% | -13.82% |
| 26-Week Price Return | 10.34% | -21.65% |
| 52-Week Price Return | 36.45% | 6.04% |
| Month-to-Date Return | 19.32% | 11.09% |
| Year-to-Date Return | 7.66% | -14.97% |
| 10-Day Avg. Volume | 46.28M | 30.10M |
| 3-Month Avg. Volume | 47.12M | 32.77M |
| 3-Month Volatility | 33.34% | 34.36% |
| Beta | 1.42 | 1.12 |
With betas of 1.42 for AMZN and 1.12 for MSFT, both stocks show similar sensitivity to overall market movements.
Profitability
Return on Equity (TTM)
AMZN
21.87%
Broadline Retail Industry
- Max
- 52.86%
- Q3
- 29.34%
- Median
- 16.16%
- Q1
- 8.94%
- Min
- -20.75%
AMZN's Return on Equity of 21.87% is on par with the norm for the Broadline Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.
MSFT
33.61%
Software Industry
- Max
- 66.50%
- Q3
- 25.41%
- Median
- 12.65%
- Q1
- -3.84%
- Min
- -39.77%
In the upper quartile for the Software industry, MSFT's Return on Equity of 33.61% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
AMZN
10.83%
Broadline Retail Industry
- Max
- 23.01%
- Q3
- 12.76%
- Median
- 7.29%
- Q1
- 4.33%
- Min
- -7.13%
AMZN's Net Profit Margin of 10.83% is aligned with the median group of its peers in the Broadline Retail industry. This indicates its ability to convert revenue into profit is typical for the sector.
MSFT
39.04%
Software Industry
- Max
- 48.76%
- Q3
- 20.11%
- Median
- 12.64%
- Q1
- -2.50%
- Min
- -35.22%
A Net Profit Margin of 39.04% 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)
AMZN
11.16%
Broadline Retail Industry
- Max
- 26.71%
- Q3
- 18.06%
- Median
- 10.35%
- Q1
- 7.32%
- Min
- -5.20%
AMZN's Operating Profit Margin of 11.16% is around the midpoint for the Broadline Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.
MSFT
46.62%
Software Industry
- Max
- 68.47%
- Q3
- 25.57%
- Median
- 13.86%
- Q1
- -3.24%
- Min
- -43.76%
An Operating Profit Margin of 46.62% 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 | AMZN | MSFT |
|---|---|---|
| Return on Equity (TTM) | 21.87% | 33.61% |
| Return on Assets (TTM) | 10.82% | 19.21% |
| Net Profit Margin (TTM) | 10.83% | 39.04% |
| Operating Profit Margin (TTM) | 11.16% | 46.62% |
| Gross Profit Margin (TTM) | 50.29% | 68.59% |
Financial Strength
Current Ratio (MRQ)
AMZN
1.05
Broadline Retail Industry
- Max
- 3.72
- Q3
- 2.39
- Median
- 1.48
- Q1
- 1.19
- Min
- 0.69
AMZN's Current Ratio of 1.05 falls into the lower quartile for the Broadline Retail industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
MSFT
1.39
Software Industry
- Max
- 3.83
- Q3
- 2.33
- Median
- 1.55
- Q1
- 1.04
- Min
- 0.47
MSFT's Current Ratio of 1.39 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)
AMZN
0.16
Broadline Retail Industry
- Max
- 2.11
- Q3
- 1.35
- Median
- 0.53
- Q1
- 0.28
- Min
- 0.00
Falling into the lower quartile for the Broadline Retail industry, AMZN's Debt-to-Equity Ratio of 0.16 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
MSFT
0.26
Software Industry
- Max
- 2.40
- Q3
- 1.00
- Median
- 0.30
- Q1
- 0.00
- Min
- 0.00
MSFT's Debt-to-Equity Ratio of 0.26 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)
AMZN
0.62
Broadline Retail Industry
- Max
- 37.34
- Q3
- 21.16
- Median
- 9.56
- Q1
- 4.03
- Min
- -19.29
AMZN's Interest Coverage Ratio of 0.62 is a critical concern. A value below 1.0 means operating earnings are insufficient to cover interest expenses, indicating severe financial strain and high default risk.
MSFT
891.80
Software Industry
- Max
- 44.00
- Q3
- 17.44
- Median
- 2.52
- Q1
- -7.25
- Min
- -36.57
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 | AMZN | MSFT |
|---|---|---|
| Current Ratio (MRQ) | 1.05 | 1.39 |
| Quick Ratio (MRQ) | 0.88 | 1.38 |
| Debt-to-Equity Ratio (MRQ) | 0.16 | 0.26 |
| Interest Coverage Ratio (TTM) | 0.62 | 891.80 |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | AMZN | MSFT |
|---|---|---|
| Revenue Growth (MRQ vs Prior YoY) | 13.63% | 16.72% |
| Revenue Growth (TTM vs Prior YoY) | 12.38% | 16.67% |
| 3-Year Revenue CAGR | 11.73% | 12.42% |
| 5-Year Revenue CAGR | 13.18% | 14.52% |
EPS Growth
EPS Growth at a Glance
| Symbol | AMZN | MSFT |
|---|---|---|
| EPS Growth (MRQ vs Prior YoY) | 5.02% | 59.69% |
| EPS Growth (TTM vs Prior YoY) | 29.87% | 28.74% |
| 3-Year EPS CAGR | -- | 12.24% |
| 5-Year EPS CAGR | 27.96% | 18.80% |
Dividend
Dividend Yield (TTM)
AMZN
0.00%
Broadline Retail Industry
- Max
- 5.64%
- Q3
- 3.22%
- Median
- 0.63%
- Q1
- 0.00%
- Min
- 0.00%
AMZN currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
MSFT
0.84%
Software Industry
- Max
- 1.46%
- Q3
- 0.63%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 0.84%, MSFT offers a more attractive income stream than most of its peers in the Software industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio (TTM)
AMZN
0.00%
Broadline Retail Industry
- Max
- 120.88%
- Q3
- 70.65%
- Median
- 26.41%
- Q1
- 0.00%
- Min
- 0.00%
AMZN has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
MSFT
21.19%
Software Industry
- Max
- 45.50%
- Q3
- 19.02%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MSFT's Dividend Payout Ratio of 21.19% is in the upper quartile for the Software industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | AMZN | MSFT |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.84% |
| Dividend Payout Ratio (TTM) | 0.00% | 21.19% |
Valuation
Price-to-Earnings Ratio (TTM)
AMZN
34.28
Broadline Retail Industry
- Max
- 47.21
- Q3
- 29.87
- Median
- 19.89
- Q1
- 10.45
- Min
- 6.96
A P/E Ratio of 34.28 places AMZN in the upper quartile for the Broadline Retail industry. This high valuation relative to peers suggests the market holds elevated expectations for the company's future growth.
MSFT
25.34
Software Industry
- Max
- 76.42
- Q3
- 47.93
- Median
- 27.90
- Q1
- 18.78
- Min
- 9.87
MSFT's P/E Ratio of 25.34 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)
AMZN
3.71
Broadline Retail Industry
- Max
- 5.32
- Q3
- 2.90
- Median
- 1.87
- Q1
- 0.98
- Min
- 0.19
AMZN's P/S Ratio of 3.71 is in the upper echelon for the Broadline Retail 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
9.89
Software Industry
- Max
- 17.45
- Q3
- 9.20
- Median
- 5.13
- Q1
- 3.29
- Min
- 0.82
MSFT's P/S Ratio of 9.89 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)
AMZN
6.00
Broadline Retail Industry
- Max
- 9.90
- Q3
- 5.53
- Median
- 3.36
- Q1
- 1.83
- Min
- 0.79
AMZN's P/B Ratio of 6.00 is in the upper tier for the Broadline Retail industry. This indicates that investors are paying a premium relative to the company's net assets, a valuation that hinges on its ability to generate superior profits.
MSFT
9.20
Software Industry
- Max
- 26.28
- Q3
- 12.85
- Median
- 6.90
- Q1
- 3.63
- Min
- 0.38
MSFT's P/B Ratio of 9.20 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 | AMZN | MSFT |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 34.28 | 25.34 |
| Price-to-Sales Ratio (TTM) | 3.71 | 9.89 |
| Price-to-Book Ratio (MRQ) | 6.00 | 9.20 |
| Price-to-Free Cash Flow Ratio (TTM) | 169.59 | 39.04 |