ASML vs. MSFT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ASML 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 ASML’s 312.40 billion USD, highlighting its more substantial market valuation.
With betas of 1.22 for ASML and 1.03 for MSFT, both stocks show similar sensitivity to overall market movements.
ASML trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, MSFT is a standard domestic listing.
| Symbol | ASML | MSFT |
|---|---|---|
| Company Name | ASML Holding N.V. | Microsoft Corporation |
| Country | NL | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Software - Infrastructure |
| CEO | Christophe D. Fouquet | Satya Nadella |
| Price | 794.5 USD | 498.84 USD |
| Market Cap | 312.40 billion USD | 3,707.65 billion USD |
| Beta | 1.22 | 1.03 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | March 15, 1995 | March 13, 1986 |
| ADR | Yes | No |
Historical Performance
This chart compares the performance of ASML 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
ASML
52.08%
Semiconductors Industry
- Max
- 41.84%
- Q3
- 15.81%
- Median
- 6.31%
- Q1
- -5.54%
- Min
- -30.12%
ASML’s Return on Equity of 52.08% is exceptionally high, placing it well beyond the typical range for the Semiconductors 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
ASML
30.91%
Semiconductors Industry
- Max
- 30.91%
- Q3
- 11.34%
- Median
- 4.08%
- Q1
- -2.17%
- Min
- -19.59%
In the upper quartile for the Semiconductors industry, ASML’s Return on Invested Capital of 30.91% signifies a highly effective use of its capital to generate profits when compared to its peers.
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
ASML
28.33%
Semiconductors Industry
- Max
- 51.69%
- Q3
- 19.67%
- Median
- 8.56%
- Q1
- -5.44%
- Min
- -38.60%
A Net Profit Margin of 28.33% places ASML in the upper quartile for the Semiconductors 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
ASML
33.76%
Semiconductors Industry
- Max
- 58.03%
- Q3
- 22.12%
- Median
- 8.40%
- Q1
- -3.73%
- Min
- -36.14%
An Operating Profit Margin of 33.76% places ASML in the upper quartile for the Semiconductors 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 | ASML | MSFT |
|---|---|---|
| Return on Equity (TTM) | 52.08% | 32.74% |
| Return on Assets (TTM) | 19.14% | 17.18% |
| Return on Invested Capital (TTM) | 30.91% | 22.11% |
| Net Profit Margin (TTM) | 28.33% | 35.79% |
| Operating Profit Margin (TTM) | 33.76% | 45.23% |
| Gross Profit Margin (TTM) | 52.01% | 69.07% |
Financial Strength
Current Ratio
ASML
1.52
Semiconductors Industry
- Max
- 9.10
- Q3
- 5.23
- Median
- 3.09
- Q1
- 2.49
- Min
- 1.02
ASML’s Current Ratio of 1.52 falls into the lower quartile for the Semiconductors industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
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
ASML
0.21
Semiconductors Industry
- Max
- 0.97
- Q3
- 0.46
- Median
- 0.21
- Q1
- 0.05
- Min
- 0.00
ASML’s Debt-to-Equity Ratio of 0.21 is typical for the Semiconductors industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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
ASML
--
Semiconductors Industry
- Max
- 36.25
- Q3
- 29.12
- Median
- 7.01
- Q1
- -1.22
- Min
- -18.18
Interest Coverage Ratio data for ASML is currently unavailable.
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 | ASML | MSFT |
|---|---|---|
| Current Ratio (TTM) | 1.52 | 1.37 |
| Quick Ratio (TTM) | 0.91 | 1.36 |
| Debt-to-Equity Ratio (TTM) | 0.21 | 0.19 |
| Debt-to-Asset Ratio (TTM) | 0.08 | 0.11 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.47 | 0.21 |
| Interest Coverage Ratio (TTM) | -- | 49.43 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ASML 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
ASML
0.85%
Semiconductors Industry
- Max
- 6.48%
- Q3
- 0.93%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ASML’s Dividend Yield of 0.85% is consistent with its peers in the Semiconductors industry, providing a dividend return that is standard for its sector.
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
ASML
28.49%
Semiconductors Industry
- Max
- 204.29%
- Q3
- 31.85%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ASML’s Dividend Payout Ratio of 28.49% is within the typical range for the Semiconductors industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
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 | ASML | MSFT |
|---|---|---|
| Dividend Yield (TTM) | 0.85% | 0.65% |
| Dividend Payout Ratio (TTM) | 28.49% | 24.30% |
Valuation
Price-to-Earnings Ratio
ASML
29.72
Semiconductors Industry
- Max
- 86.15
- Q3
- 47.38
- Median
- 27.87
- Q1
- 18.89
- Min
- 4.73
ASML’s P/E Ratio of 29.72 is within the middle range for the Semiconductors 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
ASML
1.90
Semiconductors Industry
- Max
- 4.73
- Q3
- 2.80
- Median
- 1.11
- Q1
- 0.68
- Min
- 0.01
The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.
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
ASML
8.44
Semiconductors Industry
- Max
- 21.96
- Q3
- 10.21
- Median
- 4.45
- Q1
- 2.32
- Min
- 0.48
ASML’s P/S Ratio of 8.44 aligns with the market consensus for the Semiconductors industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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
ASML
14.78
Semiconductors Industry
- Max
- 13.12
- Q3
- 6.49
- Median
- 3.31
- Q1
- 1.74
- Min
- 0.23
At 14.78, ASML’s P/B Ratio is at an extreme premium to the Semiconductors industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
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 | ASML | MSFT |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 29.72 | 38.38 |
| Forward PEG Ratio (TTM) | 1.90 | 2.18 |
| Price-to-Sales Ratio (P/S, TTM) | 8.44 | 13.73 |
| Price-to-Book Ratio (P/B, TTM) | 14.78 | 11.52 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 27.93 | 53.45 |
| EV-to-EBITDA (TTM) | 22.09 | 24.92 |
| EV-to-Sales (TTM) | 8.27 | 13.85 |