Seek Returns

KO vs. MSFT: Coca-Cola vs. Microsoft Stock Comparison

How do Coca-Cola (KO) and Microsoft (MSFT) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Coca-Cola (KO) is classified in the Consumer Staples sector (Food, Beverage & Tobacco), whereas Microsoft (MSFT) belongs to Information Technology (Software & Services) — their GICS classifications point to very different parts of the market.

Company profile comparison for Coca-Cola (KO) and Microsoft (MSFT)
Profile ItemKOMSFT
NameThe Coca-Cola CompanyMicrosoft Corporation Common Stock
Country/RegionUnited StatesUnited States
GICS SectorConsumer StaplesInformation Technology
GICS Industry GroupFood, Beverage & TobaccoSoftware & Services
GICS IndustryBeveragesSoftware
GICS Sub-IndustrySoft Drinks & Non-alcoholic BeveragesSystems Software
Market Capitalization411.56 billion USD3,940.41 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateJanuary 2, 1962March 13, 1986
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

KO
MSFT
GSPC
Loading price history…
Coca-Cola (KO) vs. Microsoft (MSFT), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

Loading price history…
Trailing total returns for Coca-Cola (KO) and Microsoft (MSFT). Returns over one year are annualized.

Calendar-Year Returns

Loading price history…
Calendar-year total returns for Coca-Cola (KO) and Microsoft (MSFT). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Coca-Cola (KO) and Microsoft (MSFT)
MetricKOMSFT
Total Return (1Y)39.33%10.30%
Total Return (3Y, Annualized)22.59%15.53%
Total Return (5Y, Annualized)14.43%11.01%

Risk Profile

Drawdown History

KO
MSFT
GSPC
Loading price history…
Coca-Cola (KO) vs. Microsoft (MSFT), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

Loading price history…
Distribution of monthly total returns for Coca-Cola (KO) and Microsoft (MSFT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Coca-Cola (KO) and Microsoft (MSFT)
MetricKOMSFT
Volatility (1Y, Annualized)18.90%33.91%
Beta (5Y)0.271.03
Max Drawdown (5Y)-17.27%-37.15%
Avg. Volume (3M)16.05M22.95M

Risk-Adjusted Performance

Risk-Return Positioning

Loading chart…
KO and MSFT are plotted by 1-year volatility (risk) and 1-year return. Each dashed Capital Allocation Line uses that stock's own industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Coca-Cola (KO) and Microsoft (MSFT)
MetricKOMSFT
Sharpe Ratio (1Y)1.850.18
Sortino Ratio (1Y)3.170.28

Profitability

ROE (TTM)

Both companies show strong equity returns, but Coca-Cola (KO) at 40.59% is the standout with ROE above its industry range; Microsoft (MSFT) at 34.22% also sits in the top quartile.

KO

Food, Beverage & Tobacco industry group

40.59%

KO
40.59%
Max
32.02%
Q3
16.61%
Median
10.05%
Q1
4.10%
Min
-10.50%

MSFT

Software & Services industry group

34.22%

Max
53.85%
MSFT
34.22%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%
Loading chart…
Coca-Cola (KO) vs. Microsoft (MSFT): A comparison of their ROE against their respective Food, Beverage & Tobacco and Software & Services industry group benchmarks.

Net Margin (TTM)

Coca-Cola (KO) at 28.65% keeps the most of each sales dollar — above its industry’s net margin range — and Microsoft (MSFT) at 41.17% also retains a top-quartile share.

KO

Food, Beverage & Tobacco industry group

28.65%

KO
28.65%
Max
24.83%
Q3
11.22%
Median
5.94%
Q1
2.05%
Min
-11.49%

MSFT

Software & Services industry group

41.17%

MSFT
41.17%
Max
41.17%
Q3
15.28%
Median
4.63%
Q1
-5.42%
Min
-33.17%
Loading chart…
Coca-Cola (KO) vs. Microsoft (MSFT): A comparison of their net margin against their respective Food, Beverage & Tobacco and Software & Services industry group benchmarks.

Operating Margin (TTM)

Microsoft (MSFT) at 49.76% shows unusually strong operating efficiency — above its industry’s operating margin range — and Coca-Cola (KO) at 33.36% also operates in the top quartile.

KO

Food, Beverage & Tobacco industry group

33.36%

Max
34.91%
KO
33.36%
Q3
17.57%
Median
11.06%
Q1
4.15%
Min
-15.06%

MSFT

Software & Services industry group

49.76%

MSFT
49.76%
Max
46.89%
Q3
17.64%
Median
8.73%
Q1
-2.13%
Min
-30.45%
Loading chart…
Coca-Cola (KO) vs. Microsoft (MSFT): A comparison of their operating margin against their respective Food, Beverage & Tobacco and Software & Services industry group benchmarks.

Profitability Metrics

Profitability metrics for Coca-Cola (KO) and Microsoft (MSFT)
MetricKOMSFT
ROE (TTM)40.59%34.22%
ROA (TTM)9.59%14.41%
Net Margin (TTM)28.65%41.17%
Operating Margin (TTM)33.36%49.76%
Gross Margin (TTM)62.32%67.66%

Growth

Revenue Growth

Both Coca-Cola (KO) at 1.87% and Microsoft (MSFT) at 17.79% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Loading chart…
Coca-Cola (KO) vs. Microsoft (MSFT): A comparison of their Revenue Growth across different time periods.

EPS Growth

Coca-Cola (KO) at 23.58% sits in the top EPS growth quartile, while Microsoft (MSFT) at 31.60% is closer to the peer norm — faster per-share earnings growth for KO.

Loading chart…
Coca-Cola (KO) vs. Microsoft (MSFT): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Coca-Cola (KO) and Microsoft (MSFT)
MetricKOMSFT
Revenue Growth (YoY)1.87%17.79%
Revenue Growth (3Y CAGR)3.69%16.12%
EPS Growth (YoY)23.58%31.60%
EPS Growth (3Y CAGR)11.55%22.86%

Financial Strength

Current Ratio (MRQ)

Both Coca-Cola (KO) at 1.38 and Microsoft (MSFT) at 1.23 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

KO

Food, Beverage & Tobacco industry group

1.38

Max
4.01
Q3
2.35
Median
1.53
KO
1.38
Q1
1.02
Min
0.33

MSFT

Software & Services industry group

1.23

Max
5.11
Q3
2.77
Median
1.67
MSFT
1.23
Q1
1.01
Min
0.03
Loading chart…
Coca-Cola (KO) vs. Microsoft (MSFT): A comparison of their current ratio against their respective Food, Beverage & Tobacco and Software & Services industry group benchmarks.

Debt / Equity (MRQ)

Both Coca-Cola (KO) at 1.07 and Microsoft (MSFT) at 0.28 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

KO

Food, Beverage & Tobacco industry group

1.07

Max
2.19
Q3
1.11
KO
1.07
Median
0.68
Q1
0.33
Min
0.00

MSFT

Software & Services industry group

0.28

Max
2.52
Q3
1.13
Median
0.40
MSFT
0.28
Q1
0.07
Min
0.00
Loading chart…
Coca-Cola (KO) vs. Microsoft (MSFT): A comparison of their debt-to-equity ratio against their respective Food, Beverage & Tobacco and Software & Services industry group benchmarks.

Financial Strength Metrics

Financial strength metrics for Coca-Cola (KO) and Microsoft (MSFT)
MetricKOMSFT
Current Ratio (MRQ)1.381.23
Debt / Equity (MRQ)1.070.28
Net Debt / EBITDA1.480.34

Dividends

Dividend Yield (TTM)

Coca-Cola (KO) at 2.19% pays an industry-typical yield; Microsoft (MSFT) at 0.69% is above its entire peer range — the higher number, but one that calls for a look at payout sustainability before treating it as an advantage.

KO

Food, Beverage & Tobacco industry group

2.19%

Max
9.38%
Q3
3.77%
KO
2.19%
Median
1.76%
Q1
0.00%
Min
0.00%

MSFT

Software & Services industry group

0.69%

MSFT
0.69%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Loading chart…
Coca-Cola (KO) vs. Microsoft (MSFT): A comparison of their dividend yield against their respective Food, Beverage & Tobacco and Software & Services industry group benchmarks.

Dividend Payout Ratio (TTM)

Coca-Cola (KO) at 61.95% keeps its payout in the industry’s typical band, while Microsoft (MSFT) at 19.00% pays out more than any of its peers — the most stretched cover in its group.

KO

Food, Beverage & Tobacco industry group

61.95%

Max
199.19%
Q3
81.03%
KO
61.95%
Median
41.52%
Q1
0.00%
Min
0.00%

MSFT

Software & Services industry group

19.00%

MSFT
19.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Loading chart…
Coca-Cola (KO) vs. Microsoft (MSFT): A comparison of their payout ratio against their respective Food, Beverage & Tobacco and Software & Services industry group benchmarks.

Dividend Metrics

Dividend metrics for Coca-Cola (KO) and Microsoft (MSFT)
MetricKOMSFT
Dividend Yield (TTM)2.19%0.69%
Dividend Payout Ratio (TTM)61.95%19.00%

Valuation

P/E Ratio (TTM)

Both Coca-Cola (KO) at 28.22 and Microsoft (MSFT) at 27.69 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

KO

Food, Beverage & Tobacco industry group

28.22

Max
52.52
Q3
30.78
KO
28.22
Median
18.76
Q1
12.77
Min
4.72

MSFT

Software & Services industry group

27.69

Max
112.94
Q3
60.32
Median
32.91
MSFT
27.69
Q1
18.77
Min
6.69
Loading chart…
Coca-Cola (KO) vs. Microsoft (MSFT): A comparison of their P/E ratio against their respective Food, Beverage & Tobacco and Software & Services industry group benchmarks.

P/S Ratio (TTM)

Both look expensive on sales: Microsoft (MSFT) at 11.37 sits in the upper P/S ratio quartile, and Coca-Cola (KO) at 8.06 prices even higher, above its industry range.

KO

Food, Beverage & Tobacco industry group

8.06

KO
8.06
Max
4.64
Q3
2.27
Median
1.17
Q1
0.52
Min
0.00

MSFT

Software & Services industry group

11.37

Max
17.91
MSFT
11.37
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02
Loading chart…
Coca-Cola (KO) vs. Microsoft (MSFT): A comparison of their P/S ratio against their respective Food, Beverage & Tobacco and Software & Services industry group benchmarks.

P/B Ratio (MRQ)

Microsoft (MSFT) at 8.38 sits near its industry’s typical P/B ratio, while Coca-Cola (KO) at 11.01 prices above its benchmark range — KO looks rich relative to book.

KO

Food, Beverage & Tobacco industry group

11.01

KO
11.01
Max
6.35
Q3
3.07
Median
1.58
Q1
0.82
Min
0.00

MSFT

Software & Services industry group

8.38

Max
16.63
Q3
8.50
MSFT
8.38
Median
4.30
Q1
1.92
Min
-3.90
Loading chart…
Coca-Cola (KO) vs. Microsoft (MSFT): A comparison of their P/B ratio against their respective Food, Beverage & Tobacco and Software & Services industry group benchmarks.

Valuation Metrics

Valuation metrics for Coca-Cola (KO) and Microsoft (MSFT)
MetricKOMSFT
P/E Ratio (TTM)28.2227.69
P/S Ratio (TTM)8.0611.37
P/B Ratio (MRQ)11.018.38
Free Cash Flow Yield (TTM)1.06%0.08%