CSCO vs. MSFT: Cisco Systems vs. Microsoft Stock Comparison

November 11, 2026

How do Cisco Systems (CSCO) 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

Cisco Systems (CSCO) and Microsoft (MSFT) share the Information Technology sector but sit in different industry groups — CSCO in Technology Hardware & Equipment and MSFT in Software & Services.

Company profile comparison for Cisco Systems (CSCO) and Microsoft (MSFT)
Profile Item	CSCO	MSFT
Name	Cisco Systems, Inc.	Microsoft Corporation Common Stock
Country/Region	United States	United States
GICS Sector	Information Technology	Information Technology
GICS Industry Group	Technology Hardware & Equipment	Software & Services
GICS Industry	Communications Equipment	Software
GICS Sub-Industry	Communications Equipment	Systems Software
Market Capitalization	370.01 billion USD	3,940.41 billion USD
Currency	USD	USD
Exchange	Nasdaq	Nasdaq
Listing Date	February 16, 1990	March 13, 1986
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

CSCO

MSFT

GSPC

Cisco Systems (CSCO) vs. Microsoft (MSFT), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Cisco Systems (CSCO) and Microsoft (MSFT). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Cisco Systems (CSCO) and Microsoft (MSFT). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Cisco Systems (CSCO) and Microsoft (MSFT)
Metric	CSCO	MSFT
Total Return (1Y)	40.88%	10.30%
Total Return (3Y, Annualized)	26.81%	15.53%
Total Return (5Y, Annualized)	14.44%	11.01%

Risk Profile

Drawdown History

CSCO

MSFT

GSPC

Cisco Systems (CSCO) vs. Microsoft (MSFT), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Cisco Systems (CSCO) and Microsoft (MSFT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Cisco Systems (CSCO) and Microsoft (MSFT)
Metric	CSCO	MSFT
Volatility (1Y, Annualized)	36.83%	33.91%
Beta (5Y)	1.02	1.03
Max Drawdown (5Y)	-36.68%	-37.15%
Avg. Volume (3M)	18.52M	22.95M

Risk-Adjusted Performance

Risk-Return Positioning

CSCO and MSFT are plotted by 1-year volatility (risk) and 1-year return. Each dashed Capital Allocation Line uses that stock's own industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Cisco Systems (CSCO) and Microsoft (MSFT)
Metric	CSCO	MSFT
Sharpe Ratio (1Y)	0.99	0.18
Sortino Ratio (1Y)	1.44	0.28

Profitability

ROE (TTM)

Both Cisco Systems (CSCO) at 27.32% and Microsoft (MSFT) at 34.22% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

CSCO

Technology Hardware & Equipment industry group

27.32%

Max: 42.47%
CSCO: 27.32%
Q3: 19.13%
Median: 11.00%
Q1: 1.63%
Min: -20.62%

MSFT

Software & Services industry group

34.22%

Max: 53.85%
MSFT: 34.22%
Q3: 17.90%
Median: 6.59%
Q1: -9.59%
Min: -50.52%

Cisco Systems (CSCO) vs. Microsoft (MSFT): A comparison of their ROE against their respective Technology Hardware & Equipment and Software & Services industry group benchmarks.

Net Margin (TTM)

For every dollar of sales, both Cisco Systems (CSCO) at 20.95% and Microsoft (MSFT) at 41.17% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

CSCO

Technology Hardware & Equipment industry group

20.95%

Max: 27.60%
CSCO: 20.95%
Q3: 11.66%
Median: 4.08%
Q1: 0.00%
Min: -11.02%

MSFT

Software & Services industry group

41.17%

MSFT: 41.17%
Max: 41.17%
Q3: 15.28%
Median: 4.63%
Q1: -5.42%
Min: -33.17%

Cisco Systems (CSCO) vs. Microsoft (MSFT): A comparison of their net margin against their respective Technology Hardware & Equipment and Software & Services industry group benchmarks.

Operating Margin (TTM)

Microsoft (MSFT) at 49.76% shows unusually strong operating efficiency — above its industry’s operating margin range — and Cisco Systems (CSCO) at 27.72% also operates in the top quartile.

CSCO

Technology Hardware & Equipment industry group

27.72%

Max: 36.27%
CSCO: 27.72%
Q3: 18.36%
Median: 8.84%
Q1: 1.46%
Min: -21.39%

MSFT

Software & Services industry group

49.76%

MSFT: 49.76%
Max: 46.89%
Q3: 17.64%
Median: 8.73%
Q1: -2.13%
Min: -30.45%

Cisco Systems (CSCO) vs. Microsoft (MSFT): A comparison of their operating margin against their respective Technology Hardware & Equipment and Software & Services industry group benchmarks.

Profitability Metrics

Profitability metrics for Cisco Systems (CSCO) and Microsoft (MSFT)
Metric	CSCO	MSFT
ROE (TTM)	27.32%	34.22%
ROA (TTM)	7.98%	14.41%
Net Margin (TTM)	20.95%	41.17%
Operating Margin (TTM)	27.72%	49.76%
Gross Margin (TTM)	64.52%	67.66%

Growth

Revenue Growth

Both Cisco Systems (CSCO) at 11.78% and Microsoft (MSFT) at 17.79% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Cisco Systems (CSCO) vs. Microsoft (MSFT): A comparison of their Revenue Growth across different time periods.

EPS Growth

Only one side can be read here: Microsoft (MSFT) reports EPS growth of 31.60%, ranked against its industry; Cisco Systems (CSCO) has no EPS growth figure this period.

Cisco Systems (CSCO) vs. Microsoft (MSFT): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Cisco Systems (CSCO) and Microsoft (MSFT)
Metric	CSCO	MSFT
Revenue Growth (YoY)	11.78%	17.79%
Revenue Growth (3Y CAGR)	3.57%	16.12%
EPS Growth (YoY)	--	31.60%
EPS Growth (3Y CAGR)	--	22.86%

Financial Strength

Current Ratio (MRQ)

Microsoft (MSFT) at 1.23 keeps current ratio within its industry’s typical mid-range, while Cisco Systems (CSCO) at 0.93 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for CSCO.

CSCO

Technology Hardware & Equipment industry group

0.93

Max: 5.34
Q3: 3.02
Median: 1.95
Q1: 1.32
CSCO: 0.93
Min: 0.17

MSFT

Software & Services industry group

1.23

Max: 5.11
Q3: 2.77
Median: 1.67
MSFT: 1.23
Q1: 1.01
Min: 0.03

Cisco Systems (CSCO) vs. Microsoft (MSFT): A comparison of their current ratio against their respective Technology Hardware & Equipment and Software & Services industry group benchmarks.

Debt / Equity (MRQ)

Both Cisco Systems (CSCO) at 0.62 and Microsoft (MSFT) at 0.28 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

CSCO

Technology Hardware & Equipment industry group

0.62

Max: 1.76
Q3: 0.78
CSCO: 0.62
Median: 0.24
Q1: 0.04
Min: 0.01

MSFT

Software & Services industry group

0.28

Max: 2.52
Q3: 1.13
Median: 0.40
MSFT: 0.28
Q1: 0.07
Min: 0.00

Cisco Systems (CSCO) vs. Microsoft (MSFT): A comparison of their debt-to-equity ratio against their respective Technology Hardware & Equipment and Software & Services industry group benchmarks.

Financial Strength Metrics

Financial strength metrics for Cisco Systems (CSCO) and Microsoft (MSFT)
Metric	CSCO	MSFT
Current Ratio (MRQ)	0.93	1.23
Debt / Equity (MRQ)	0.62	0.28
Net Debt / EBITDA	0.82	0.34

Dividends

Dividend Yield (TTM)

Both Cisco Systems (CSCO) at 1.73% and Microsoft (MSFT) at 0.69% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

CSCO

Technology Hardware & Equipment industry group

1.73%

CSCO: 1.73%
Max: 0.73%
Q3: 0.31%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

MSFT

Software & Services industry group

0.69%

MSFT: 0.69%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Cisco Systems (CSCO) vs. Microsoft (MSFT): A comparison of their dividend yield against their respective Technology Hardware & Equipment and Software & Services industry group benchmarks.

Dividend Payout Ratio (TTM)

Both Cisco Systems (CSCO) at 49.85% and Microsoft (MSFT) at 19.00% pay out more of their earnings than any of their industry peers — the thinnest cover in their groups, so dividend headroom deserves attention.

CSCO

Technology Hardware & Equipment industry group

49.85%

CSCO: 49.85%
Max: 32.27%
Q3: 14.48%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

MSFT

Software & Services industry group

19.00%

MSFT: 19.00%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Cisco Systems (CSCO) vs. Microsoft (MSFT): A comparison of their payout ratio against their respective Technology Hardware & Equipment and Software & Services industry group benchmarks.

Dividend Metrics

Dividend metrics for Cisco Systems (CSCO) and Microsoft (MSFT)
Metric	CSCO	MSFT
Dividend Yield (TTM)	1.73%	0.69%
Dividend Payout Ratio (TTM)	49.85%	19.00%

Valuation

P/E Ratio (TTM)

Both Cisco Systems (CSCO) at 28.18 and Microsoft (MSFT) at 27.69 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

CSCO

Technology Hardware & Equipment industry group

28.18

Max: 69.48
Q3: 41.02
CSCO: 28.18
Median: 26.39
Q1: 19.36
Min: 6.07

MSFT

Software & Services industry group

27.69

Max: 112.94
Q3: 60.32
Median: 32.91
MSFT: 27.69
Q1: 18.77
Min: 6.69

Cisco Systems (CSCO) vs. Microsoft (MSFT): A comparison of their P/E ratio against their respective Technology Hardware & Equipment and Software & Services industry group benchmarks.

P/S Ratio (TTM)

Both Cisco Systems (CSCO) at 5.84 and Microsoft (MSFT) at 11.37 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.

CSCO

Technology Hardware & Equipment industry group

5.84

Max: 11.30
CSCO: 5.84
Q3: 5.82
Median: 2.56
Q1: 1.05
Min: 0.00

MSFT

Software & Services industry group

11.37

Max: 17.91
MSFT: 11.37
Q3: 8.78
Median: 4.25
Q1: 2.23
Min: 0.02

Cisco Systems (CSCO) vs. Microsoft (MSFT): A comparison of their P/S ratio against their respective Technology Hardware & Equipment and Software & Services industry group benchmarks.

P/B Ratio (MRQ)

Microsoft (MSFT) at 8.38 is valued about in line with its industry on P/B ratio, while Cisco Systems (CSCO) at 7.36 carries an above-peer premium to book — CSCO is pricier on assets.

CSCO

Technology Hardware & Equipment industry group

7.36

Max: 10.75
CSCO: 7.36
Q3: 5.52
Median: 3.17
Q1: 1.79
Min: 0.33

MSFT

Software & Services industry group

8.38

Max: 16.63
Q3: 8.50
MSFT: 8.38
Median: 4.30
Q1: 1.92
Min: -3.90

Cisco Systems (CSCO) vs. Microsoft (MSFT): A comparison of their P/B ratio against their respective Technology Hardware & Equipment and Software & Services industry group benchmarks.

Valuation Metrics

Valuation metrics for Cisco Systems (CSCO) and Microsoft (MSFT)
Metric	CSCO	MSFT
P/E Ratio (TTM)	28.18	27.69
P/S Ratio (TTM)	5.84	11.37
P/B Ratio (MRQ)	7.36	8.38
Free Cash Flow Yield (TTM)	3.02%	0.08%