APP vs. MSFT: AppLovin vs. Microsoft Stock Comparison
How do AppLovin (APP) 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
AppLovin (APP) and Microsoft (MSFT) both belong to the Software industry, though APP is classified under Application Software while MSFT falls under Systems Software.
Microsoft (MSFT) has more than two decades of public-market history since March 13, 1986, whereas AppLovin (APP) listed on April 15, 2021 and has a much shorter record to draw on.
| Profile Item | APP | MSFT |
|---|---|---|
| Name | AppLovin Corporation Class A Common Stock | Microsoft Corp. |
| Country/Region | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | Software | Software |
| GICS Sub-Industry | Application Software | Systems Software |
| Market Capitalization | 160.27 billion USD | 2,770.58 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | April 15, 2021 | March 13, 1986 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Performance Metrics
| Metric | APP | MSFT |
|---|---|---|
| Total Return (1Y) | 37.31% | -24.42% |
Risk Profile
Drawdown History
AppLovin (APP) carries a highly aggressive beta of 2.51, indicating much higher sensitivity to broad-market moves, whereas Microsoft (MSFT) is closer to market-like at 1.15 — a noticeable difference in market-sensitivity profile.
Risk Metrics
| Metric | APP | MSFT |
|---|---|---|
| Volatility (1Y, Annualized) | 71.28% | 26.91% |
| Beta (5Y) | 2.51 | 1.15 |
| Avg. Volume (3M) | 4.88M | 39.09M |
Risk-Adjusted Performance
Risk-Return Positioning
Profitability
ROE (TTM)
Both companies show strong equity returns, but AppLovin (APP) at 266.44% is the standout with ROE above its industry range; Microsoft (MSFT) at 34.01% also sits in the top quartile.
APP
Software & Services industry group
266.44%
- APP
- 266.44%
- Max
- 53.38%
- Q3
- 16.53%
- Median
- 5.38%
- Q1
- -13.43%
- Min
- -55.27%
MSFT
Software & Services industry group
34.01%
- Max
- 53.38%
- MSFT
- 34.01%
- Q3
- 16.53%
- Median
- 5.38%
- Q1
- -13.43%
- Min
- -55.27%
Net Margin (TTM)
AppLovin (APP) at 64.29% keeps the most of each sales dollar — above its industry’s net margin range — and Microsoft (MSFT) at 39.34% also retains a top-quartile share.
APP
Software & Services industry group
64.29%
- APP
- 64.29%
- Max
- 44.20%
- Q3
- 14.93%
- Median
- 3.32%
- Q1
- -5.99%
- Min
- -34.99%
MSFT
Software & Services industry group
39.34%
- Max
- 44.20%
- MSFT
- 39.34%
- Q3
- 14.93%
- Median
- 3.32%
- Q1
- -5.99%
- Min
- -34.99%
Operating Margin (TTM)
AppLovin (APP) at 78.15% shows unusually strong operating efficiency — above its industry’s operating margin range — and Microsoft (MSFT) at 46.33% also operates in the top quartile.
APP
Software & Services industry group
78.15%
- APP
- 78.15%
- Max
- 60.45%
- Q3
- 16.49%
- Median
- 4.46%
- Q1
- -12.92%
- Min
- -53.94%
MSFT
Software & Services industry group
46.33%
- Max
- 60.45%
- MSFT
- 46.33%
- Q3
- 16.49%
- Median
- 4.46%
- Q1
- -12.92%
- Min
- -53.94%
Profitability Metrics
| Metric | APP | MSFT |
|---|---|---|
| ROE (TTM) | 266.44% | 34.01% |
| ROA (TTM) | 44.24% | 14.81% |
| Net Margin (TTM) | 64.29% | 39.34% |
| Operating Margin (TTM) | 78.15% | 46.33% |
| Gross Margin (TTM) | 88.37% | 68.31% |
Growth
Revenue Growth
Revenue Growth Metrics
| Metric | APP | MSFT |
|---|---|---|
| Revenue Growth (YoY) | 69.99% | 14.93% |
| Revenue Growth (3Y CAGR) | 24.84% | 12.42% |
EPS Growth
EPS Growth Metrics
| Metric | APP | MSFT |
|---|---|---|
| EPS Growth (YoY) | 115.23% | 15.59% |
| EPS Growth (3Y CAGR) | -- | 12.23% |
Financial Strength
Current Ratio (MRQ)
Microsoft (MSFT) at 1.28 keeps current ratio within its industry’s typical mid-range, while AppLovin (APP) at 3.24 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.
APP
Software & Services industry group
3.24
- Max
- 5.55
- APP
- 3.24
- Q3
- 2.88
- Median
- 1.72
- Q1
- 1.07
- Min
- 0.03
MSFT
Software & Services industry group
1.28
- Max
- 5.55
- Q3
- 2.88
- Median
- 1.72
- MSFT
- 1.28
- Q1
- 1.07
- Min
- 0.03
Debt / Equity (MRQ)
Microsoft (MSFT) at 0.30 carries an industry-typical debt-to-equity mix, while AppLovin (APP) at 1.63 uses more debt funding than most peers.
APP
Software & Services industry group
1.63
- Max
- 2.31
- APP
- 1.63
- Q3
- 1.06
- Median
- 0.32
- Q1
- 0.06
- Min
- 0.00
MSFT
Software & Services industry group
0.30
- Max
- 2.31
- Q3
- 1.06
- Median
- 0.32
- MSFT
- 0.30
- Q1
- 0.06
- Min
- 0.00
Financial Strength Metrics
| Metric | APP | MSFT |
|---|---|---|
| Current Ratio (MRQ) | 3.24 | 1.28 |
| Debt / Equity (MRQ) | 1.63 | 0.30 |
| Net Debt / EBITDA | 0.22 | 0.26 |
Dividends
Dividend Yield (TTM)
AppLovin (APP) 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 1.01%, ranking against industry peers normally.
APP
Software & Services industry group
0.00%
- APP
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MSFT
Software & Services industry group
1.01%
- MSFT
- 1.01%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
AppLovin (APP) 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.
APP
Software & Services industry group
0.00%
- APP
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MSFT
Software & Services industry group
20.73%
- MSFT
- 20.73%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | APP | MSFT |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.01% |
| Dividend Payout Ratio (TTM) | 0.00% | 20.73% |
Valuation
P/E Ratio (TTM)
Both AppLovin (APP) at 41.49 and Microsoft (MSFT) at 22.23 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.
APP
Software & Services industry group
41.49
- Max
- 114.57
- Q3
- 59.78
- APP
- 41.49
- Median
- 29.42
- Q1
- 16.20
- Min
- 0.40
MSFT
Software & Services industry group
22.23
- Max
- 114.57
- Q3
- 59.78
- Median
- 29.42
- MSFT
- 22.23
- Q1
- 16.20
- Min
- 0.40
P/S Ratio (TTM)
Microsoft (MSFT) at 8.71 prices around its industry’s typical P/S ratio, while AppLovin (APP) at 26.00 clears its benchmark range — APP looks notably rich on sales.
APP
Software & Services industry group
26.00
- APP
- 26.00
- Max
- 17.86
- Q3
- 8.79
- Median
- 4.10
- Q1
- 2.13
- Min
- 0.03
MSFT
Software & Services industry group
8.71
- Max
- 17.86
- Q3
- 8.79
- MSFT
- 8.71
- Median
- 4.10
- Q1
- 2.13
- Min
- 0.03
P/B Ratio (MRQ)
Microsoft (MSFT) at 6.69 sits near its industry’s typical P/B ratio, while AppLovin (APP) at 67.88 prices above its benchmark range — APP looks rich relative to book.
APP
Software & Services industry group
67.88
- APP
- 67.88
- Max
- 17.72
- Q3
- 8.62
- Median
- 3.82
- Q1
- 1.97
- Min
- -7.65
MSFT
Software & Services industry group
6.69
- Max
- 17.72
- Q3
- 8.62
- MSFT
- 6.69
- Median
- 3.82
- Q1
- 1.97
- Min
- -7.65
Valuation Metrics
| Metric | APP | MSFT |
|---|---|---|
| P/E Ratio (TTM) | 41.49 | 22.23 |
| P/S Ratio (TTM) | 26.00 | 8.71 |
| P/B Ratio (MRQ) | 67.88 | 6.69 |
| Free Cash Flow Yield (TTM) | 1.98% | 1.34% |