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

Updated on October 8, 2025

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

Company Profile

Symbol	ETN	MSFT
Company Name	Eaton Corporation plc	Microsoft Corporation
Country	Ireland	United States
GICS Sector	Industrials	Information Technology
GICS Industry	Electrical Equipment	Software
Market Capitalization	147.94 billion USD	3,928.95 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 ETN 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.

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

Historical Performance at a Glance

Symbol	ETN	MSFT
5-Day Price Return	1.54%	2.05%
13-Week Price Return	6.01%	6.20%
26-Week Price Return	37.34%	38.30%
52-Week Price Return	16.23%	26.90%
Month-to-Date Return	1.54%	2.05%
Year-to-Date Return	14.51%	25.40%
10-Day Avg. Volume	1.86M	18.30M
3-Month Avg. Volume	2.26M	20.07M
3-Month Volatility	26.46%	16.47%
Beta	1.17	1.07

Profitability

Return on Equity (TTM)

ETN

21.03%

Electrical Equipment Industry

Max: 35.67%
Q3: 23.64%
Median: 11.74%
Q1: 6.08%
Min: -4.39%

ETN’s Return on Equity of 21.03% is on par with the norm for the Electrical Equipment 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.

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

Net Profit Margin (TTM)

ETN

15.56%

Electrical Equipment Industry

Max: 20.60%
Q3: 10.26%
Median: 5.83%
Q1: 2.92%
Min: -0.75%

A Net Profit Margin of 15.56% places ETN in the upper quartile for the Electrical Equipment industry, signifying strong profitability and more effective cost management than most of its peers.

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.

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

Operating Profit Margin (TTM)

ETN

19.27%

Electrical Equipment Industry

Max: 26.24%
Q3: 14.53%
Median: 7.97%
Q1: 3.45%
Min: -5.64%

An Operating Profit Margin of 19.27% places ETN in the upper quartile for the Electrical Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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.

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

Profitability at a Glance

Symbol	ETN	MSFT
Return on Equity (TTM)	21.03%	32.44%
Return on Assets (TTM)	9.99%	18.20%
Net Profit Margin (TTM)	15.56%	36.15%
Operating Profit Margin (TTM)	19.27%	45.29%
Gross Profit Margin (TTM)	38.45%	68.82%

Financial Strength

Current Ratio (MRQ)

ETN

1.24

Electrical Equipment Industry

Max: 3.31
Q3: 2.09
Median: 1.48
Q1: 1.09
Min: 0.85

ETN’s Current Ratio of 1.24 aligns with the median group of the Electrical Equipment industry, indicating that its short-term liquidity is in line with its sector peers.

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.

ETN vs. MSFT: A comparison of their Current Ratio (MRQ) against their respective Electrical Equipment and Software industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ETN

0.59

Electrical Equipment Industry

Max: 1.57
Q3: 0.96
Median: 0.57
Q1: 0.30
Min: 0.00

ETN’s Debt-to-Equity Ratio of 0.59 is typical for the Electrical Equipment 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.

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

Interest Coverage Ratio (TTM)

ETN

36.12

Electrical Equipment Industry

Max: 44.15
Q3: 19.29
Median: 9.38
Q1: 0.98
Min: -19.47

ETN’s Interest Coverage Ratio of 36.12 is in the upper quartile for the Electrical Equipment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

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.

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

Financial Strength at a Glance

Symbol	ETN	MSFT
Current Ratio (MRQ)	1.24	1.35
Quick Ratio (MRQ)	0.63	1.35
Debt-to-Equity Ratio (MRQ)	0.59	0.26
Interest Coverage Ratio (TTM)	36.12	891.80

Growth

Revenue Growth

ETN 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

ETN 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)

ETN

1.05%

Electrical Equipment Industry

Max: 3.04%
Q3: 1.58%
Median: 1.00%
Q1: 0.00%
Min: 0.00%

ETN’s Dividend Yield of 1.05% is consistent with its peers in the Electrical Equipment 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.

ETN vs. MSFT: A comparison of their Dividend Yield (TTM) against their respective Electrical Equipment and Software industry benchmarks.

Dividend Payout Ratio (TTM)

ETN

39.77%

Electrical Equipment Industry

Max: 165.68%
Q3: 71.84%
Median: 38.15%
Q1: 0.00%
Min: 0.00%

ETN’s Dividend Payout Ratio of 39.77% is within the typical range for the Electrical Equipment 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.

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

Dividend at a Glance

Symbol	ETN	MSFT
Dividend Yield (TTM)	1.05%	0.63%
Dividend Payout Ratio (TTM)	39.77%	23.65%

Valuation

Price-to-Earnings Ratio (TTM)

ETN

38.01

Electrical Equipment Industry

Max: 65.02
Q3: 38.99
Median: 27.41
Q1: 19.88
Min: 8.37

ETN’s P/E Ratio of 38.01 is within the middle range for the Electrical Equipment 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

37.76

Software Industry

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

MSFT’s P/E Ratio of 37.76 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.

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

Price-to-Sales Ratio (TTM)

ETN

5.90

Electrical Equipment Industry

Max: 7.01
Q3: 4.03
Median: 1.79
Q1: 1.10
Min: 0.47

ETN’s P/S Ratio of 5.90 is in the upper echelon for the Electrical Equipment 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

13.65

Software Industry

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

MSFT’s P/S Ratio of 13.65 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.

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

Price-to-Book Ratio (MRQ)

ETN

7.51

Electrical Equipment Industry

Max: 10.97
Q3: 5.57
Median: 3.50
Q1: 1.66
Min: 0.64

ETN’s P/B Ratio of 7.51 is in the upper tier for the Electrical Equipment industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

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.

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

Valuation at a Glance

Symbol	ETN	MSFT
Price-to-Earnings Ratio (TTM)	38.01	37.76
Price-to-Sales Ratio (TTM)	5.90	13.65
Price-to-Book Ratio (MRQ)	7.51	10.76
Price-to-Free Cash Flow Ratio (TTM)	45.62	53.70