DIS vs. MSFT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at DIS and MSFT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | DIS | MSFT |
|---|---|---|
| Company Name | The Walt Disney Company | Microsoft Corporation |
| Country | United States | United States |
| GICS Sector | Communication Services | Information Technology |
| GICS Industry | Entertainment | Software |
| Market Capitalization | 191.08 billion USD | 3,776.90 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | January 2, 1962 | March 13, 1986 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of DIS 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.
Historical Performance at a Glance
| Symbol | DIS | MSFT |
|---|---|---|
| 5-Day Price Return | -5.74% | -0.23% |
| 13-Week Price Return | -8.31% | -1.86% |
| 26-Week Price Return | -5.01% | 12.04% |
| 52-Week Price Return | 3.00% | 18.88% |
| Month-to-Date Return | -6.06% | -1.99% |
| Year-to-Date Return | -4.98% | 20.40% |
| 10-Day Avg. Volume | 13.62M | 23.89M |
| 3-Month Avg. Volume | 8.62M | 20.87M |
| 3-Month Volatility | 21.92% | 16.65% |
| Beta | 1.47 | 1.07 |
Profitability
Return on Equity (TTM)
DIS
11.67%
Entertainment Industry
- Max
- 41.86%
- Q3
- 22.17%
- Median
- 13.67%
- Q1
- 4.55%
- Min
- -17.95%
DIS’s Return on Equity of 11.67% is on par with the norm for the Entertainment industry, indicating its profitability relative to shareholder equity is typical for the sector.
MSFT
31.53%
Software Industry
- Max
- 65.88%
- Q3
- 22.54%
- Median
- 10.46%
- Q1
- -6.54%
- Min
- -41.05%
In the upper quartile for the Software industry, MSFT’s Return on Equity of 31.53% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
DIS
13.14%
Entertainment Industry
- Max
- 45.33%
- Q3
- 29.05%
- Median
- 15.14%
- Q1
- 4.44%
- Min
- -21.70%
DIS’s Net Profit Margin of 13.14% is aligned with the median group of its peers in the Entertainment industry. This indicates its ability to convert revenue into profit is typical for the sector.
MSFT
35.71%
Software Industry
- Max
- 53.50%
- Q3
- 20.30%
- Median
- 9.60%
- Q1
- -4.98%
- Min
- -41.00%
A Net Profit Margin of 35.71% places MSFT in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
DIS
13.78%
Entertainment Industry
- Max
- 43.42%
- Q3
- 28.90%
- Median
- 18.77%
- Q1
- 9.11%
- Min
- -4.88%
DIS’s Operating Profit Margin of 13.78% is around the midpoint for the Entertainment industry, indicating that its efficiency in managing core business operations is typical for the sector.
MSFT
45.94%
Software Industry
- Max
- 61.99%
- Q3
- 23.67%
- Median
- 10.93%
- Q1
- -3.57%
- Min
- -40.19%
An Operating Profit Margin of 45.94% 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.
Profitability at a Glance
| Symbol | DIS | MSFT |
|---|---|---|
| Return on Equity (TTM) | 11.67% | 31.53% |
| Return on Assets (TTM) | 6.30% | 17.84% |
| Net Profit Margin (TTM) | 13.14% | 35.71% |
| Operating Profit Margin (TTM) | 13.78% | 45.94% |
| Gross Profit Margin (TTM) | 37.76% | 68.76% |
Financial Strength
Current Ratio (MRQ)
DIS
0.71
Entertainment Industry
- Max
- 6.76
- Q3
- 4.06
- Median
- 1.58
- Q1
- 0.87
- Min
- 0.38
DIS’s Current Ratio of 0.71 falls into the lower quartile for the Entertainment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
MSFT
1.40
Software Industry
- Max
- 4.01
- Q3
- 2.27
- Median
- 1.50
- Q1
- 1.03
- Min
- 0.25
MSFT’s Current Ratio of 1.40 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
DIS
0.38
Entertainment Industry
- Max
- 1.54
- Q3
- 0.80
- Median
- 0.15
- Q1
- 0.01
- Min
- 0.00
DIS’s Debt-to-Equity Ratio of 0.38 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
MSFT
0.27
Software Industry
- Max
- 2.04
- Q3
- 0.86
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
MSFT’s Debt-to-Equity Ratio of 0.27 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.
Interest Coverage Ratio (TTM)
DIS
10.44
Entertainment Industry
- Max
- 62.11
- Q3
- 35.59
- Median
- 7.06
- Q1
- 1.13
- Min
- -44.74
DIS’s Interest Coverage Ratio of 10.44 is positioned comfortably within the norm for the Entertainment industry, indicating a standard and healthy capacity to cover its interest payments.
MSFT
891.80
Software Industry
- Max
- 89.65
- Q3
- 33.82
- Median
- 1.59
- Q1
- -10.48
- Min
- -71.23
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.
Financial Strength at a Glance
| Symbol | DIS | MSFT |
|---|---|---|
| Current Ratio (MRQ) | 0.71 | 1.40 |
| Quick Ratio (MRQ) | 0.65 | 1.39 |
| Debt-to-Equity Ratio (MRQ) | 0.38 | 0.27 |
| Interest Coverage Ratio (TTM) | 10.44 | 891.80 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
DIS
0.95%
Entertainment Industry
- Max
- 2.71%
- Q3
- 1.23%
- Median
- 0.60%
- Q1
- 0.00%
- Min
- 0.00%
DIS’s Dividend Yield of 0.95% is consistent with its peers in the Entertainment industry, providing a dividend return that is standard for its sector.
MSFT
0.65%
Software Industry
- Max
- 0.34%
- Q3
- 0.17%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MSFT’s Dividend Yield of 0.65% 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.
Dividend Payout Ratio (TTM)
DIS
39.30%
Entertainment Industry
- Max
- 82.30%
- Q3
- 37.50%
- Median
- 24.18%
- Q1
- 0.00%
- Min
- 0.00%
DIS’s Dividend Payout Ratio of 39.30% is in the upper quartile for the Entertainment 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.
MSFT
23.52%
Software Industry
- Max
- 12.76%
- Q3
- 6.56%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
At 23.52%, 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.
Dividend at a Glance
| Symbol | DIS | MSFT |
|---|---|---|
| Dividend Yield (TTM) | 0.95% | 0.65% |
| Dividend Payout Ratio (TTM) | 39.30% | 23.52% |
Valuation
Price-to-Earnings Ratio (TTM)
DIS
15.31
Entertainment Industry
- Max
- 80.06
- Q3
- 53.00
- Median
- 28.44
- Q1
- 18.00
- Min
- 2.61
In the lower quartile for the Entertainment industry, DIS’s P/E Ratio of 15.31 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
MSFT
36.14
Software Industry
- Max
- 142.78
- Q3
- 72.24
- Median
- 36.21
- Q1
- 24.24
- Min
- 4.55
MSFT’s P/E Ratio of 36.14 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.
Price-to-Sales Ratio (TTM)
DIS
2.01
Entertainment Industry
- Max
- 10.86
- Q3
- 6.98
- Median
- 4.25
- Q1
- 2.56
- Min
- 0.51
In the lower quartile for the Entertainment industry, DIS’s P/S Ratio of 2.01 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
MSFT
12.91
Software Industry
- Max
- 20.79
- Q3
- 12.71
- Median
- 6.75
- Q1
- 4.56
- Min
- 0.87
MSFT’s P/S Ratio of 12.91 is in the upper echelon for the Software 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 (MRQ)
DIS
1.88
Entertainment Industry
- Max
- 19.63
- Q3
- 10.35
- Median
- 5.18
- Q1
- 2.07
- Min
- 0.59
DIS’s P/B Ratio of 1.88 is in the lower quartile for the Entertainment industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
MSFT
10.60
Software Industry
- Max
- 30.49
- Q3
- 14.84
- Median
- 8.09
- Q1
- 4.32
- Min
- 0.38
MSFT’s P/B Ratio of 10.60 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.
Valuation at a Glance
| Symbol | DIS | MSFT |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 15.31 | 36.14 |
| Price-to-Sales Ratio (TTM) | 2.01 | 12.91 |
| Price-to-Book Ratio (MRQ) | 1.88 | 10.60 |
| Price-to-Free Cash Flow Ratio (TTM) | 18.85 | 48.60 |