Seek Returns logo

AUR vs. MSFT: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at AUR 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 AUR’s 9.37 billion USD, highlighting its more substantial market valuation.

AUR’s beta of 2.60 points to significantly higher volatility compared to MSFT (beta: 1.03), suggesting AUR has greater potential for both gains and losses relative to market movements.

SymbolAURMSFT
Company NameAurora Innovation, Inc.Microsoft Corporation
CountryUSUS
SectorTechnologyTechnology
IndustryInformation Technology ServicesSoftware - Infrastructure
CEOChristopher UrmsonSatya Nadella
Price5.3 USD498.84 USD
Market Cap9.37 billion USD3,707.65 billion USD
Beta2.601.03
ExchangeNASDAQNASDAQ
IPO DateMay 10, 2021March 13, 1986
ADRNoNo

Historical Performance

This chart compares the performance of AUR 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.

AUR vs. MSFT: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AUR

-42.79%

Information Technology Services Industry

Max
47.24%
Q3
23.27%
Median
12.85%
Q1
2.22%
Min
-26.63%

AUR has a negative Return on Equity of -42.79%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

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.

AUR vs. MSFT: A comparison of their ROE against their respective Information Technology Services and Software - Infrastructure industry benchmarks.

Return on Invested Capital

AUR

-40.98%

Information Technology Services Industry

Max
28.29%
Q3
13.19%
Median
7.24%
Q1
0.23%
Min
-18.82%

AUR has a negative Return on Invested Capital of -40.98%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.

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.

AUR vs. MSFT: A comparison of their ROIC against their respective Information Technology Services and Software - Infrastructure industry benchmarks.

Net Profit Margin

AUR

--

Information Technology Services Industry

Max
20.47%
Q3
11.62%
Median
5.97%
Q1
1.89%
Min
-4.62%

Net Profit Margin data for AUR is currently unavailable.

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.

AUR vs. MSFT: A comparison of their Net Profit Margin against their respective Information Technology Services and Software - Infrastructure industry benchmarks.

Operating Profit Margin

AUR

--

Information Technology Services Industry

Max
29.42%
Q3
14.75%
Median
8.92%
Q1
2.62%
Min
-11.92%

Operating Profit Margin data for AUR is currently unavailable.

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.

AUR vs. MSFT: A comparison of their Operating Margin against their respective Information Technology Services and Software - Infrastructure industry benchmarks.

Profitability at a Glance

SymbolAURMSFT
Return on Equity (TTM)-42.79%32.74%
Return on Assets (TTM)-38.19%17.18%
Return on Invested Capital (TTM)-40.98%22.11%
Net Profit Margin (TTM)--35.79%
Operating Profit Margin (TTM)--45.23%
Gross Profit Margin (TTM)--69.07%

Financial Strength

Current Ratio

AUR

9.54

Information Technology Services Industry

Max
3.41
Q3
2.37
Median
1.58
Q1
1.20
Min
0.00

AUR’s Current Ratio of 9.54 is exceptionally high, placing it well outside the typical range for the Information Technology Services industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

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.

AUR vs. MSFT: A comparison of their Current Ratio against their respective Information Technology Services and Software - Infrastructure industry benchmarks.

Debt-to-Equity Ratio

AUR

0.06

Information Technology Services Industry

Max
2.63
Q3
1.16
Median
0.48
Q1
0.09
Min
0.01

Falling into the lower quartile for the Information Technology Services industry, AUR’s Debt-to-Equity Ratio of 0.06 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

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.

AUR vs. MSFT: A comparison of their D/E Ratio against their respective Information Technology Services and Software - Infrastructure industry benchmarks.

Interest Coverage Ratio

AUR

--

Information Technology Services Industry

Max
17.52
Q3
10.04
Median
4.66
Q1
0.80
Min
-10.50

Interest Coverage Ratio data for AUR 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.

AUR vs. MSFT: A comparison of their Interest Coverage against their respective Information Technology Services and Software - Infrastructure industry benchmarks.

Financial Strength at a Glance

SymbolAURMSFT
Current Ratio (TTM)9.541.37
Quick Ratio (TTM)9.541.36
Debt-to-Equity Ratio (TTM)0.060.19
Debt-to-Asset Ratio (TTM)0.060.11
Net Debt-to-EBITDA Ratio (TTM)0.070.21
Interest Coverage Ratio (TTM)--49.43

Growth

The following charts compare key year-over-year (YoY) growth metrics for AUR and MSFT. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AUR vs. MSFT: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AUR vs. MSFT: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AUR vs. MSFT: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AUR

0.00%

Information Technology Services Industry

Max
16.57%
Q3
1.39%
Median
0.00%
Q1
0.00%
Min
0.00%

AUR 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.

AUR vs. MSFT: A comparison of their Dividend Yield against their respective Information Technology Services and Software - Infrastructure industry benchmarks.

Dividend Payout Ratio

AUR

0.00%

Information Technology Services Industry

Max
112.81%
Q3
20.98%
Median
0.00%
Q1
0.00%
Min
0.00%

AUR 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.

AUR vs. MSFT: A comparison of their Payout Ratio against their respective Information Technology Services and Software - Infrastructure industry benchmarks.

Dividend at a Glance

SymbolAURMSFT
Dividend Yield (TTM)0.00%0.65%
Dividend Payout Ratio (TTM)0.00%24.30%

Valuation

Price-to-Earnings Ratio

AUR

-11.69

Information Technology Services Industry

Max
49.12
Q3
36.91
Median
24.84
Q1
15.88
Min
1.55

AUR has a negative P/E Ratio of -11.69. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.

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.

AUR vs. MSFT: A comparison of their P/E Ratio against their respective Information Technology Services and Software - Infrastructure industry benchmarks.

Forward P/E to Growth Ratio

AUR

0.45

Information Technology Services Industry

Max
5.35
Q3
3.79
Median
2.23
Q1
1.19
Min
0.03

In the lower quartile for the Information Technology Services industry, AUR’s Forward PEG Ratio of 0.45 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.

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.

AUR vs. MSFT: A comparison of their Forward PEG Ratio against their respective Information Technology Services and Software - Infrastructure industry benchmarks.

Price-to-Sales Ratio

AUR

--

Information Technology Services Industry

Max
8.15
Q3
4.17
Median
2.14
Q1
1.00
Min
0.10

P/S Ratio data for AUR is currently unavailable.

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.

AUR vs. MSFT: A comparison of their P/S Ratio against their respective Information Technology Services and Software - Infrastructure industry benchmarks.

Price-to-Book Ratio

AUR

5.18

Information Technology Services Industry

Max
11.78
Q3
6.14
Median
3.23
Q1
1.97
Min
0.42

The P/B Ratio is often not a primary valuation metric for the Information Technology Services 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.

AUR vs. MSFT: A comparison of their P/B Ratio against their respective Information Technology Services and Software - Infrastructure industry benchmarks.

Valuation at a Glance

SymbolAURMSFT
Price-to-Earnings Ratio (P/E, TTM)-11.6938.38
Forward PEG Ratio (TTM)0.452.18
Price-to-Sales Ratio (P/S, TTM)--13.73
Price-to-Book Ratio (P/B, TTM)5.1811.52
Price-to-Free Cash Flow Ratio (P/FCF, TTM)-14.7053.45
EV-to-EBITDA (TTM)-11.8224.92
EV-to-Sales (TTM)--13.85