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

Updated on October 4, 2025

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

Company Profile

Symbol	EA	MSFT
Company Name	Electronic Arts Inc.	Microsoft Corporation
Country	United States	United States
GICS Sector	Communication Services	Information Technology
GICS Industry	Entertainment	Software
Market Capitalization	50.28 billion USD	3,863.09 billion USD
Exchange	NasdaqGS	NasdaqGS
Listing Date	September 20, 1989	March 13, 1986
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of EA 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.

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

Historical Performance at a Glance

Symbol	EA	MSFT
5-Day Price Return	19.79%	2.50%
13-Week Price Return	26.76%	5.62%
26-Week Price Return	38.77%	33.06%
52-Week Price Return	40.57%	20.78%
Month-to-Date Return	-0.03%	0.34%
Year-to-Date Return	37.82%	23.30%
10-Day Avg. Volume	7.07M	21.67M
3-Month Avg. Volume	3.29M	20.04M
3-Month Volatility	39.80%	16.30%
Beta	0.77	1.07

Profitability

Return on Equity (TTM)

EA

15.27%

Entertainment Industry

Max: 42.50%
Q3: 24.06%
Median: 13.69%
Q1: 5.35%
Min: -17.95%

EA’s Return on Equity of 15.27% is on par with the norm for the Entertainment industry, indicating its profitability relative to shareholder equity is typical for the sector.

MSFT

32.44%

Software Industry

Max: 66.28%
Q3: 21.28%
Median: 9.33%
Q1: -8.77%
Min: -48.16%

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.

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

Net Profit Margin (TTM)

EA

13.94%

Entertainment Industry

Max: 45.33%
Q3: 24.40%
Median: 13.94%
Q1: 4.28%
Min: -23.67%

EA’s Net Profit Margin of 13.94% 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

36.15%

Software Industry

Max: 51.92%
Q3: 19.23%
Median: 6.98%
Q1: -7.14%
Min: -41.00%

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.

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

Operating Profit Margin (TTM)

EA

19.09%

Entertainment Industry

Max: 41.77%
Q3: 28.26%
Median: 16.13%
Q1: 8.03%
Min: -3.93%

EA’s Operating Profit Margin of 19.09% is around the midpoint for the Entertainment industry, indicating that its efficiency in managing core business operations is typical for the sector.

MSFT

45.29%

Software Industry

Max: 60.40%
Q3: 21.25%
Median: 9.90%
Q1: -4.97%
Min: -43.50%

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.

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

Profitability at a Glance

Symbol	EA	MSFT
Return on Equity (TTM)	15.27%	32.44%
Return on Assets (TTM)	8.23%	18.20%
Net Profit Margin (TTM)	13.94%	36.15%
Operating Profit Margin (TTM)	19.09%	45.29%
Gross Profit Margin (TTM)	79.14%	68.82%

Financial Strength

Current Ratio (MRQ)

EA

0.84

Entertainment Industry

Max: 6.76
Q3: 4.02
Median: 1.55
Q1: 0.86
Min: 0.38

EA’s Current Ratio of 0.84 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

1.35

Software Industry

Max: 4.29
Q3: 2.37
Median: 1.40
Q1: 1.03
Min: 0.25

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.

EA vs. MSFT: A comparison of their Current Ratio (MRQ) against their respective Entertainment and Software industry benchmarks.

Debt-to-Equity Ratio (MRQ)

EA

0.31

Entertainment Industry

Max: 1.54
Q3: 0.77
Median: 0.16
Q1: 0.02
Min: 0.00

EA’s Debt-to-Equity Ratio of 0.31 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

0.26

Software Industry

Max: 2.16
Q3: 0.86
Median: 0.31
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.

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

Interest Coverage Ratio (TTM)

EA

190.43

Entertainment Industry

Max: 87.17
Q3: 35.59
Median: 7.06
Q1: 1.13
Min: -44.74

With an Interest Coverage Ratio of 190.43, EA demonstrates a superior capacity to service its debt, placing it well above the typical range for the Entertainment industry. This stems from either robust earnings or a conservative debt load.

MSFT

891.80

Software Industry

Max: 89.65
Q3: 32.64
Median: 1.00
Q1: -9.84
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.

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

Financial Strength at a Glance

Symbol	EA	MSFT
Current Ratio (MRQ)	0.84	1.35
Quick Ratio (MRQ)	0.84	1.35
Debt-to-Equity Ratio (MRQ)	0.31	0.26
Interest Coverage Ratio (TTM)	190.43	891.80

Growth

Revenue Growth

EA 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

EA 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)

EA

0.39%

Entertainment Industry

Max: 2.90%
Q3: 1.29%
Median: 0.59%
Q1: 0.00%
Min: 0.00%

EA’s Dividend Yield of 0.39% is consistent with its peers in the Entertainment industry, providing a dividend return that is standard for its sector.

MSFT

0.63%

Software Industry

Max: 0.22%
Q3: 0.11%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

MSFT’s Dividend Yield of 0.63% 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.

EA vs. MSFT: A comparison of their Dividend Yield (TTM) against their respective Entertainment and Software industry benchmarks.

Dividend Payout Ratio (TTM)

EA

18.91%

Entertainment Industry

Max: 82.30%
Q3: 38.45%
Median: 29.74%
Q1: 0.00%
Min: 0.00%

EA’s Dividend Payout Ratio of 18.91% is within the typical range for the Entertainment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

MSFT

23.65%

Software Industry

Max: 3.29%
Q3: 2.41%
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.

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

Dividend at a Glance

Symbol	EA	MSFT
Dividend Yield (TTM)	0.39%	0.63%
Dividend Payout Ratio (TTM)	18.91%	23.65%

Valuation

Price-to-Earnings Ratio (TTM)

EA

48.48

Entertainment Industry

Max: 92.09
Q3: 54.51
Median: 28.92
Q1: 19.75
Min: 2.96

EA’s P/E Ratio of 48.48 is within the middle range for the Entertainment 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

37.47

Software Industry

Max: 145.74
Q3: 94.88
Median: 45.35
Q1: 26.66
Min: 8.80

MSFT’s P/E Ratio of 37.47 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.

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

Price-to-Sales Ratio (TTM)

EA

6.76

Entertainment Industry

Max: 12.34
Q3: 7.67
Median: 5.06
Q1: 2.72
Min: 0.67

EA’s P/S Ratio of 6.76 aligns with the market consensus for the Entertainment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

MSFT

13.54

Software Industry

Max: 25.67
Q3: 13.68
Median: 8.28
Q1: 4.95
Min: 0.90

MSFT’s P/S Ratio of 13.54 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.

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

Price-to-Book Ratio (MRQ)

EA

6.60

Entertainment Industry

Max: 22.84
Q3: 10.54
Median: 6.60
Q1: 2.30
Min: 0.65

EA’s P/B Ratio of 6.60 is within the conventional range for the Entertainment 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.

MSFT

10.76

Software Industry

Max: 30.67
Q3: 14.92
Median: 8.52
Q1: 3.89
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.

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

Valuation at a Glance

Symbol	EA	MSFT
Price-to-Earnings Ratio (TTM)	48.48	37.47
Price-to-Sales Ratio (TTM)	6.76	13.54
Price-to-Book Ratio (MRQ)	6.60	10.76
Price-to-Free Cash Flow Ratio (TTM)	27.19	53.28