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

Updated on August 25, 2025

Here’s a clear look at AXP and MSFT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

Symbol	AXP	MSFT
Company Name	American Express Company	Microsoft Corporation
Country	United States	United States
GICS Sector	Financials	Information Technology
GICS Industry	Consumer Finance	Software
Market Capitalization	214.61 billion USD	3,759.10 billion USD
Exchange	NYSE	NasdaqGS
Listing Date	June 1, 1972	March 13, 1986
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of AXP 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.

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

Historical Performance at a Glance

Symbol	AXP	MSFT
5-Day Price Return	0.22%	-3.21%
13-Week Price Return	3.04%	10.21%
26-Week Price Return	0.29%	23.18%
52-Week Price Return	21.39%	19.97%
Month-to-Date Return	3.04%	-5.21%
Year-to-Date Return	3.91%	19.98%
10-Day Avg. Volume	2.33M	20.86M
3-Month Avg. Volume	2.74M	20.58M
3-Month Volatility	22.06%	15.87%
Beta	1.32	1.04

Profitability

Return on Equity (TTM)

AXP

32.87%

Consumer Finance Industry

Max: 32.87%
Q3: 20.39%
Median: 14.14%
Q1: 7.64%
Min: -10.63%

In the upper quartile for the Consumer Finance industry, AXP’s Return on Equity of 32.87% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

MSFT

32.44%

Software Industry

Max: 59.01%
Q3: 21.98%
Median: 7.15%
Q1: -11.12%
Min: -51.24%

In the upper quartile for the Software industry, MSFT’s Return on Equity of 32.44% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

AXP vs. MSFT: A comparison of their Return on Equity (TTM) against their respective Consumer Finance and Software industry benchmarks.

Net Profit Margin (TTM)

AXP

13.55%

Consumer Finance Industry

Max: 19.68%
Q3: 15.94%
Median: 13.37%
Q1: 9.73%
Min: 3.66%

AXP’s Net Profit Margin of 13.55% is aligned with the median group of its peers in the Consumer Finance industry. This indicates its ability to convert revenue into profit is typical for the sector.

MSFT

36.15%

Software Industry

Max: 48.14%
Q3: 18.23%
Median: 5.60%
Q1: -9.22%
Min: -49.36%

A Net Profit Margin of 36.15% places MSFT in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.

AXP vs. MSFT: A comparison of their Net Profit Margin (TTM) against their respective Consumer Finance and Software industry benchmarks.

Operating Profit Margin (TTM)

AXP

17.15%

Consumer Finance Industry

Max: 50.11%
Q3: 29.38%
Median: 18.31%
Q1: 14.26%
Min: -5.45%

AXP’s Operating Profit Margin of 17.15% is around the midpoint for the Consumer Finance industry, indicating that its efficiency in managing core business operations is typical for the sector.

MSFT

45.29%

Software Industry

Max: 57.34%
Q3: 20.60%
Median: 7.84%
Q1: -8.72%
Min: -51.37%

An Operating Profit Margin of 45.29% 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.

AXP vs. MSFT: A comparison of their Operating Profit Margin (TTM) against their respective Consumer Finance and Software industry benchmarks.

Profitability at a Glance

Symbol	AXP	MSFT
Return on Equity (TTM)	32.87%	32.44%
Return on Assets (TTM)	3.62%	18.20%
Net Profit Margin (TTM)	13.55%	36.15%
Operating Profit Margin (TTM)	17.15%	45.29%
Gross Profit Margin (TTM)	61.37%	68.82%

Financial Strength

Current Ratio (MRQ)

AXP

0.71

Consumer Finance Industry

Max: 5.34
Q3: 4.21
Median: 2.67
Q1: 0.71
Min: 0.20

For the Consumer Finance industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

MSFT

1.35

Software Industry

Max: 3.83
Q3: 2.31
Median: 1.45
Q1: 1.03
Min: 0.24

MSFT’s Current Ratio of 1.35 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.

AXP vs. MSFT: A comparison of their Current Ratio (MRQ) against their respective Consumer Finance and Software industry benchmarks.

Debt-to-Equity Ratio (MRQ)

AXP

6.47

Consumer Finance Industry

Max: 6.63
Q3: 3.39
Median: 2.21
Q1: 0.94
Min: 0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Consumer Finance industry.

MSFT

0.26

Software Industry

Max: 2.14
Q3: 0.90
Median: 0.29
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.

AXP vs. MSFT: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Consumer Finance and Software industry benchmarks.

Interest Coverage Ratio (TTM)

AXP

33.37

Consumer Finance Industry

Max: 49.63
Q3: 39.33
Median: 4.56
Q1: 2.97
Min: -15.69

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Consumer Finance industry.

MSFT

891.80

Software Industry

Max: 67.02
Q3: 19.86
Median: 0.70
Q1: -12.50
Min: -53.00

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.

AXP vs. MSFT: A comparison of their Interest Coverage Ratio (TTM) against their respective Consumer Finance and Software industry benchmarks.

Financial Strength at a Glance

Symbol	AXP	MSFT
Current Ratio (MRQ)	0.71	1.35
Quick Ratio (MRQ)	0.71	1.35
Debt-to-Equity Ratio (MRQ)	6.47	0.26
Interest Coverage Ratio (TTM)	33.37	891.80

Growth

Revenue Growth

AXP vs. MSFT: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AXP vs. MSFT: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

AXP

0.99%

Consumer Finance Industry

Max: 8.31%
Q3: 3.93%
Median: 2.51%
Q1: 0.84%
Min: 0.00%

AXP’s Dividend Yield of 0.99% is consistent with its peers in the Consumer Finance industry, providing a dividend return that is standard for its sector.

MSFT

0.64%

Software Industry

Max: 0.08%
Q3: 0.03%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

MSFT’s Dividend Yield of 0.64% is exceptionally high, placing it well above the typical range for the Software industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.

AXP vs. MSFT: A comparison of their Dividend Yield (TTM) against their respective Consumer Finance and Software industry benchmarks.

Dividend Payout Ratio (TTM)

AXP

20.97%

Consumer Finance Industry

Max: 145.89%
Q3: 88.53%
Median: 23.79%
Q1: 0.00%
Min: 0.00%

AXP’s Dividend Payout Ratio of 20.97% is within the typical range for the Consumer Finance industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

MSFT

23.65%

Software Industry

Max: 1.32%
Q3: 0.53%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

At 23.65%, MSFT’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Software industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.

AXP vs. MSFT: A comparison of their Dividend Payout Ratio (TTM) against their respective Consumer Finance and Software industry benchmarks.

Dividend at a Glance

Symbol	AXP	MSFT
Dividend Yield (TTM)	0.99%	0.64%
Dividend Payout Ratio (TTM)	20.97%	23.65%

Valuation

Price-to-Earnings Ratio (TTM)

AXP

21.11

Consumer Finance Industry

Max: 34.39
Q3: 20.36
Median: 13.05
Q1: 9.29
Min: 4.74

A P/E Ratio of 21.11 places AXP in the upper quartile for the Consumer Finance industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

MSFT

37.23

Software Industry

Max: 149.35
Q3: 100.21
Median: 47.97
Q1: 26.77
Min: 11.68

MSFT’s P/E Ratio of 37.23 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.

AXP vs. MSFT: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Consumer Finance and Software industry benchmarks.

Price-to-Sales Ratio (TTM)

AXP

2.86

Consumer Finance Industry

Max: 4.28
Q3: 2.67
Median: 1.88
Q1: 1.15
Min: 0.55

AXP’s P/S Ratio of 2.86 is in the upper echelon for the Consumer Finance 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

13.46

Software Industry

Max: 25.24
Q3: 13.52
Median: 8.15
Q1: 4.87
Min: 0.98

MSFT’s P/S Ratio of 13.46 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AXP vs. MSFT: A comparison of their Price-to-Sales Ratio (TTM) against their respective Consumer Finance and Software industry benchmarks.

Price-to-Book Ratio (MRQ)

AXP

6.87

Consumer Finance Industry

Max: 3.63
Q3: 2.40
Median: 1.96
Q1: 1.16
Min: 0.26

At 6.87, AXP’s P/B Ratio is at an extreme premium to the Consumer Finance 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

10.76

Software Industry

Max: 30.95
Q3: 14.91
Median: 7.75
Q1: 3.60
Min: 0.38

MSFT’s P/B Ratio of 10.76 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.

AXP vs. MSFT: A comparison of their Price-to-Book Ratio (MRQ) against their respective Consumer Finance and Software industry benchmarks.

Valuation at a Glance

Symbol	AXP	MSFT
Price-to-Earnings Ratio (TTM)	21.11	37.23
Price-to-Sales Ratio (TTM)	2.86	13.46
Price-to-Book Ratio (MRQ)	6.87	10.76
Price-to-Free Cash Flow Ratio (TTM)	16.03	52.94