Seek Returns logo

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

Updated on

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

Company Profile

SymbolFTVMSFT
Company NameFortive CorporationMicrosoft Corporation
CountryUnited StatesUnited States
GICS SectorIndustrialsInformation Technology
GICS IndustryMachinerySoftware
Market Capitalization16.49 billion USD3,869.56 billion USD
ExchangeNYSENasdaqGS
Listing DateJuly 5, 2016March 13, 1986
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of FTV 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.

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

Historical Performance at a Glance

SymbolFTVMSFT
5-Day Price Return2.70%-0.05%
13-Week Price Return-33.92%15.88%
26-Week Price Return-38.97%25.19%
52-Week Price Return-28.68%27.97%
Month-to-Date Return1.67%-2.42%
Year-to-Date Return-35.03%23.51%
10-Day Avg. Volume5.20M23.66M
3-Month Avg. Volume3.85M21.75M
3-Month Volatility55.22%15.92%
Beta1.091.03

Profitability

Return on Equity (TTM)

FTV

7.44%

Machinery Industry

Max
34.68%
Q3
19.06%
Median
13.13%
Q1
8.53%
Min
-4.87%

FTV’s Return on Equity of 7.44% is in the lower quartile for the Machinery industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

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.

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

Net Profit Margin (TTM)

FTV

12.51%

Machinery Industry

Max
19.74%
Q3
11.24%
Median
8.13%
Q1
5.38%
Min
-1.11%

A Net Profit Margin of 12.51% places FTV in the upper quartile for the Machinery industry, signifying strong profitability and more effective cost management than most of its peers.

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.

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

Operating Profit Margin (TTM)

FTV

17.22%

Machinery Industry

Max
26.63%
Q3
16.15%
Median
11.27%
Q1
7.72%
Min
-4.91%

An Operating Profit Margin of 17.22% places FTV in the upper quartile for the Machinery 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
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.

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

Profitability at a Glance

SymbolFTVMSFT
Return on Equity (TTM)7.44%32.44%
Return on Assets (TTM)4.40%18.20%
Net Profit Margin (TTM)12.51%36.15%
Operating Profit Margin (TTM)17.22%45.29%
Gross Profit Margin (TTM)59.78%68.82%

Financial Strength

Current Ratio (MRQ)

FTV

0.98

Machinery Industry

Max
3.83
Q3
2.32
Median
1.72
Q1
1.28
Min
0.78

FTV’s Current Ratio of 0.98 falls into the lower quartile for the Machinery 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
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.

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

Debt-to-Equity Ratio (MRQ)

FTV

0.46

Machinery Industry

Max
1.49
Q3
0.75
Median
0.44
Q1
0.26
Min
0.00

FTV’s Debt-to-Equity Ratio of 0.46 is typical for the Machinery 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
2.14
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.

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

Interest Coverage Ratio (TTM)

FTV

6.04

Machinery Industry

Max
67.55
Q3
33.79
Median
13.87
Q1
7.97
Min
-1.43

In the lower quartile for the Machinery industry, FTV’s Interest Coverage Ratio of 6.04 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

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.

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

Financial Strength at a Glance

SymbolFTVMSFT
Current Ratio (MRQ)0.981.35
Quick Ratio (MRQ)0.771.35
Debt-to-Equity Ratio (MRQ)0.460.26
Interest Coverage Ratio (TTM)6.04891.80

Growth

Revenue Growth

FTV 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

FTV 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)

FTV

0.67%

Machinery Industry

Max
5.32%
Q3
2.84%
Median
1.87%
Q1
1.09%
Min
0.00%

FTV’s Dividend Yield of 0.67% is in the lower quartile for the Machinery industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

MSFT

0.61%

Software Industry

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

MSFT’s Dividend Yield of 0.61% 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.

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

Dividend Payout Ratio (TTM)

FTV

14.22%

Machinery Industry

Max
202.17%
Q3
98.65%
Median
55.54%
Q1
29.03%
Min
0.00%

FTV’s Dividend Payout Ratio of 14.22% is in the lower quartile for the Machinery industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

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.

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

Dividend at a Glance

SymbolFTVMSFT
Dividend Yield (TTM)0.67%0.61%
Dividend Payout Ratio (TTM)14.22%23.65%

Valuation

Price-to-Earnings Ratio (TTM)

FTV

21.32

Machinery Industry

Max
53.66
Q3
31.29
Median
22.00
Q1
16.18
Min
7.00

FTV’s P/E Ratio of 21.32 is within the middle range for the Machinery 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

38.73

Software Industry

Max
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

MSFT’s P/E Ratio of 38.73 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.

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

Price-to-Sales Ratio (TTM)

FTV

2.67

Machinery Industry

Max
5.04
Q3
2.72
Median
1.67
Q1
1.04
Min
0.24

FTV’s P/S Ratio of 2.67 aligns with the market consensus for the Machinery industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

MSFT

14.00

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

MSFT’s P/S Ratio of 14.00 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.

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

Price-to-Book Ratio (MRQ)

FTV

2.34

Machinery Industry

Max
7.23
Q3
3.90
Median
2.52
Q1
1.47
Min
0.49

FTV’s P/B Ratio of 2.34 is within the conventional range for the Machinery 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
30.95
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.

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

Valuation at a Glance

SymbolFTVMSFT
Price-to-Earnings Ratio (TTM)21.3238.73
Price-to-Sales Ratio (TTM)2.6714.00
Price-to-Book Ratio (MRQ)2.3410.76
Price-to-Free Cash Flow Ratio (TTM)11.8355.07