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

Updated on August 19, 2025

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

Company Profile

Symbol	GE	MSFT
Company Name	GE Aerospace	Microsoft Corporation
Country	United States	United States
GICS Sector	Industrials	Information Technology
GICS Industry	Industrial Conglomerates	Software
Market Capitalization	285.11 billion USD	3,869.56 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 GE 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.

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

Historical Performance at a Glance

Symbol	GE	MSFT
5-Day Price Return	-1.16%	-0.05%
13-Week Price Return	22.80%	15.88%
26-Week Price Return	30.48%	25.19%
52-Week Price Return	61.12%	27.97%
Month-to-Date Return	-0.82%	-2.42%
Year-to-Date Return	61.20%	23.51%
10-Day Avg. Volume	4.24M	23.66M
3-Month Avg. Volume	6.65M	21.75M
3-Month Volatility	24.29%	15.92%
Beta	1.53	1.03

Profitability

Return on Equity (TTM)

GE

40.51%

Industrial Conglomerates Industry

Max: 21.93%
Q3: 14.23%
Median: 7.81%
Q1: 5.91%
Min: -3.58%

GE’s Return on Equity of 40.51% is exceptionally high, placing it well beyond the typical range for the Industrial Conglomerates industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

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.

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

Net Profit Margin (TTM)

GE

18.64%

Industrial Conglomerates Industry

Max: 18.70%
Q3: 12.58%
Median: 9.26%
Q1: 3.87%
Min: -2.26%

A Net Profit Margin of 18.64% places GE in the upper quartile for the Industrial Conglomerates 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.

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

Operating Profit Margin (TTM)

GE

15.53%

Industrial Conglomerates Industry

Max: 25.69%
Q3: 17.03%
Median: 12.85%
Q1: 8.81%
Min: -0.73%

GE’s Operating Profit Margin of 15.53% is around the midpoint for the Industrial Conglomerates industry, indicating that its efficiency in managing core business operations is typical for the sector.

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.

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

Profitability at a Glance

Symbol	GE	MSFT
Return on Equity (TTM)	40.51%	32.44%
Return on Assets (TTM)	6.22%	18.20%
Net Profit Margin (TTM)	18.64%	36.15%
Operating Profit Margin (TTM)	15.53%	45.29%
Gross Profit Margin (TTM)	35.97%	68.82%

Financial Strength

Current Ratio (MRQ)

GE

1.04

Industrial Conglomerates Industry

Max: 2.19
Q3: 1.64
Median: 1.38
Q1: 1.13
Min: 0.61

GE’s Current Ratio of 1.04 falls into the lower quartile for the Industrial Conglomerates 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.

GE vs. MSFT: A comparison of their Current Ratio (MRQ) against their respective Industrial Conglomerates and Software industry benchmarks.

Debt-to-Equity Ratio (MRQ)

GE

0.99

Industrial Conglomerates Industry

Max: 2.27
Q3: 1.47
Median: 0.99
Q1: 0.66
Min: 0.21

GE’s Debt-to-Equity Ratio of 0.99 is typical for the Industrial Conglomerates 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.

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

Interest Coverage Ratio (TTM)

GE

5.01

Industrial Conglomerates Industry

Max: 11.17
Q3: 8.02
Median: 5.88
Q1: 2.73
Min: -2.15

GE’s Interest Coverage Ratio of 5.01 is positioned comfortably within the norm for the Industrial Conglomerates industry, indicating a standard and healthy capacity to cover its interest payments.

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.

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

Financial Strength at a Glance

Symbol	GE	MSFT
Current Ratio (MRQ)	1.04	1.35
Quick Ratio (MRQ)	0.73	1.35
Debt-to-Equity Ratio (MRQ)	0.99	0.26
Interest Coverage Ratio (TTM)	5.01	891.80

Growth

Revenue Growth

GE 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

GE 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)

GE

0.44%

Industrial Conglomerates Industry

Max: 10.17%
Q3: 5.53%
Median: 3.14%
Q1: 1.88%
Min: 0.00%

GE’s Dividend Yield of 0.44% is in the lower quartile for the Industrial Conglomerates 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.

GE vs. MSFT: A comparison of their Dividend Yield (TTM) against their respective Industrial Conglomerates and Software industry benchmarks.

Dividend Payout Ratio (TTM)

GE

16.78%

Industrial Conglomerates Industry

Max: 181.91%
Q3: 95.57%
Median: 50.60%
Q1: 35.01%
Min: 1.76%

GE’s Dividend Payout Ratio of 16.78% is in the lower quartile for the Industrial Conglomerates 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.

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

Dividend at a Glance

Symbol	GE	MSFT
Dividend Yield (TTM)	0.44%	0.61%
Dividend Payout Ratio (TTM)	16.78%	23.65%

Valuation

Price-to-Earnings Ratio (TTM)

GE

38.26

Industrial Conglomerates Industry

Max: 36.98
Q3: 22.09
Median: 12.18
Q1: 8.93
Min: 5.63

At 38.26, GE’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Industrial Conglomerates industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

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.

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

Price-to-Sales Ratio (TTM)

GE

7.13

Industrial Conglomerates Industry

Max: 3.60
Q3: 2.10
Median: 0.68
Q1: 0.42
Min: 0.11

With a P/S Ratio of 7.13, GE trades at a valuation that eclipses even the highest in the Industrial Conglomerates industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

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.

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

Price-to-Book Ratio (MRQ)

GE

14.26

Industrial Conglomerates Industry

Max: 4.89
Q3: 2.51
Median: 1.06
Q1: 0.60
Min: 0.27

At 14.26, GE’s P/B Ratio is at an extreme premium to the Industrial Conglomerates industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

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.

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

Valuation at a Glance

Symbol	GE	MSFT
Price-to-Earnings Ratio (TTM)	38.26	38.73
Price-to-Sales Ratio (TTM)	7.13	14.00
Price-to-Book Ratio (MRQ)	14.26	10.76
Price-to-Free Cash Flow Ratio (TTM)	54.04	55.07