APP vs. MSFT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at APP and MSFT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
MSFT’s market capitalization of 3,707.65 billion USD is significantly greater than APP’s 115.62 billion USD, highlighting its more substantial market valuation.
APP’s beta of 2.53 points to significantly higher volatility compared to MSFT (beta: 1.03), suggesting APP has greater potential for both gains and losses relative to market movements.
| Symbol | APP | MSFT |
|---|---|---|
| Company Name | AppLovin Corporation | Microsoft Corporation |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Software - Application | Software - Infrastructure |
| CEO | Adam Arash Foroughi | Satya Nadella |
| Price | 341.64 USD | 498.84 USD |
| Market Cap | 115.62 billion USD | 3,707.65 billion USD |
| Beta | 2.53 | 1.03 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | April 15, 2021 | March 13, 1986 |
| ADR | No | No |
Historical Performance
This chart compares the performance of APP 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.
Profitability
Return on Equity
APP
224.68%
Software - Application Industry
- Max
- 59.01%
- Q3
- 17.85%
- Median
- 4.73%
- Q1
- -10.56%
- Min
- -52.94%
APP’s Return on Equity of 224.68% is exceptionally high, placing it well beyond the typical range for the Software - Application industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
MSFT
32.74%
Software - Infrastructure Industry
- Max
- 80.61%
- Q3
- 29.97%
- Median
- 2.84%
- Q1
- -8.35%
- Min
- -56.26%
In the upper quartile for the Software - Infrastructure industry, MSFT’s Return on Equity of 32.74% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
APP
48.77%
Software - Application Industry
- Max
- 35.07%
- Q3
- 9.72%
- Median
- 0.76%
- Q1
- -8.68%
- Min
- -34.12%
APP’s Return on Invested Capital of 48.77% is exceptionally high, placing it well beyond the typical range for the Software - Application industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
MSFT
22.11%
Software - Infrastructure Industry
- Max
- 39.31%
- Q3
- 11.97%
- Median
- 1.67%
- Q1
- -7.10%
- Min
- -34.29%
In the upper quartile for the Software - Infrastructure industry, MSFT’s Return on Invested Capital of 22.11% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
APP
37.39%
Software - Application Industry
- Max
- 48.14%
- Q3
- 16.07%
- Median
- 1.83%
- Q1
- -9.60%
- Min
- -45.64%
A Net Profit Margin of 37.39% places APP in the upper quartile for the Software - Application industry, signifying strong profitability and more effective cost management than most of its peers.
MSFT
35.79%
Software - Infrastructure Industry
- Max
- 46.46%
- Q3
- 14.65%
- Median
- 2.66%
- Q1
- -7.70%
- Min
- -35.45%
A Net Profit Margin of 35.79% places MSFT in the upper quartile for the Software - Infrastructure industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
APP
42.86%
Software - Application Industry
- Max
- 51.67%
- Q3
- 15.35%
- Median
- 1.79%
- Q1
- -12.42%
- Min
- -45.17%
An Operating Profit Margin of 42.86% places APP in the upper quartile for the Software - Application industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
MSFT
45.23%
Software - Infrastructure Industry
- Max
- 48.51%
- Q3
- 16.56%
- Median
- 4.48%
- Q1
- -6.43%
- Min
- -40.18%
An Operating Profit Margin of 45.23% places MSFT in the upper quartile for the Software - Infrastructure 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 | APP | MSFT |
|---|---|---|
| Return on Equity (TTM) | 224.68% | 32.74% |
| Return on Assets (TTM) | 33.64% | 17.18% |
| Return on Invested Capital (TTM) | 48.77% | 22.11% |
| Net Profit Margin (TTM) | 37.39% | 35.79% |
| Operating Profit Margin (TTM) | 42.86% | 45.23% |
| Gross Profit Margin (TTM) | 77.40% | 69.07% |
Financial Strength
Current Ratio
APP
1.68
Software - Application Industry
- Max
- 5.09
- Q3
- 2.84
- Median
- 1.70
- Q1
- 1.12
- Min
- 0.04
APP’s Current Ratio of 1.68 aligns with the median group of the Software - Application industry, indicating that its short-term liquidity is in line with its sector peers.
MSFT
1.37
Software - Infrastructure Industry
- Max
- 3.80
- Q3
- 2.25
- Median
- 1.51
- Q1
- 1.10
- Min
- 0.23
MSFT’s Current Ratio of 1.37 aligns with the median group of the Software - Infrastructure industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
APP
6.45
Software - Application Industry
- Max
- 1.85
- Q3
- 0.77
- Median
- 0.18
- Q1
- 0.05
- Min
- 0.00
With a Debt-to-Equity Ratio of 6.45, APP operates with exceptionally high leverage compared to the Software - Application industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
MSFT
0.19
Software - Infrastructure Industry
- Max
- 2.56
- Q3
- 1.12
- Median
- 0.33
- Q1
- 0.05
- Min
- 0.00
MSFT’s Debt-to-Equity Ratio of 0.19 is typical for the Software - Infrastructure 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
APP
7.41
Software - Application Industry
- Max
- 39.23
- Q3
- 8.55
- Median
- 1.48
- Q1
- -14.59
- Min
- -39.97
APP’s Interest Coverage Ratio of 7.41 is positioned comfortably within the norm for the Software - Application industry, indicating a standard and healthy capacity to cover its interest payments.
MSFT
49.43
Software - Infrastructure Industry
- Max
- 32.21
- Q3
- 5.24
- Median
- 0.95
- Q1
- -17.99
- Min
- -50.82
With an Interest Coverage Ratio of 49.43, MSFT demonstrates a superior capacity to service its debt, placing it well above the typical range for the Software - Infrastructure industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | APP | MSFT |
|---|---|---|
| Current Ratio (TTM) | 1.68 | 1.37 |
| Quick Ratio (TTM) | 1.68 | 1.36 |
| Debt-to-Equity Ratio (TTM) | 6.45 | 0.19 |
| Debt-to-Asset Ratio (TTM) | 0.65 | 0.11 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.20 | 0.21 |
| Interest Coverage Ratio (TTM) | 7.41 | 49.43 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for APP and MSFT. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
APP
0.00%
Software - Application Industry
- Max
- 3.66%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
APP 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
0.65%
Software - Infrastructure Industry
- Max
- 4.07%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 0.65%, MSFT offers a more attractive income stream than most of its peers in the Software - Infrastructure industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
APP
0.00%
Software - Application Industry
- Max
- 81.09%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
APP 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
24.30%
Software - Infrastructure Industry
- Max
- 48.68%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MSFT’s Dividend Payout Ratio of 24.30% is in the upper quartile for the Software - Infrastructure 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 | APP | MSFT |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.65% |
| Dividend Payout Ratio (TTM) | 0.00% | 24.30% |
Valuation
Price-to-Earnings Ratio
APP
60.47
Software - Application Industry
- Max
- 194.31
- Q3
- 98.56
- Median
- 51.87
- Q1
- 22.76
- Min
- 1.02
APP’s P/E Ratio of 60.47 is within the middle range for the Software - Application 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
38.38
Software - Infrastructure Industry
- Max
- 107.77
- Q3
- 54.40
- Median
- 28.10
- Q1
- 18.03
- Min
- 5.32
MSFT’s P/E Ratio of 38.38 is within the middle range for the Software - Infrastructure industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
APP
2.46
Software - Application Industry
- Max
- 15.44
- Q3
- 6.57
- Median
- 2.78
- Q1
- 0.55
- Min
- 0.00
APP’s Forward PEG Ratio of 2.46 is within the middle range of its peers in the Software - Application industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
MSFT
2.18
Software - Infrastructure Industry
- Max
- 8.12
- Q3
- 3.94
- Median
- 2.13
- Q1
- 0.94
- Min
- 0.01
MSFT’s Forward PEG Ratio of 2.18 is within the middle range of its peers in the Software - Infrastructure industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
Price-to-Sales Ratio
APP
22.51
Software - Application Industry
- Max
- 23.49
- Q3
- 11.14
- Median
- 5.62
- Q1
- 2.84
- Min
- 0.33
APP’s P/S Ratio of 22.51 is in the upper echelon for the Software - Application 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
13.73
Software - Infrastructure Industry
- Max
- 18.25
- Q3
- 9.05
- Median
- 4.77
- Q1
- 2.30
- Min
- 0.11
MSFT’s P/S Ratio of 13.73 is in the upper echelon for the Software - Infrastructure 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
APP
201.77
Software - Application Industry
- Max
- 21.03
- Q3
- 10.49
- Median
- 6.36
- Q1
- 2.89
- Min
- 0.12
The P/B Ratio is often not a primary valuation metric for the Software - Application industry.
MSFT
11.52
Software - Infrastructure Industry
- Max
- 19.94
- Q3
- 10.91
- Median
- 6.33
- Q1
- 2.95
- Min
- 0.51
The P/B Ratio is often not a primary valuation metric for the Software - Infrastructure industry.
Valuation at a Glance
| Symbol | APP | MSFT |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 60.47 | 38.38 |
| Forward PEG Ratio (TTM) | 2.46 | 2.18 |
| Price-to-Sales Ratio (P/S, TTM) | 22.51 | 13.73 |
| Price-to-Book Ratio (P/B, TTM) | 201.77 | 11.52 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 45.64 | 53.45 |
| EV-to-EBITDA (TTM) | 45.16 | 24.92 |
| EV-to-Sales (TTM) | 23.13 | 13.85 |