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

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

Company Profile

SymbolMAMSFT
Company NameMastercard IncorporatedMicrosoft Corporation
CountryUnited StatesUnited States
GICS SectorFinancialsInformation Technology
GICS IndustryFinancial ServicesSoftware
Market Capitalization536.27 billion USD3,748.25 billion USD
ExchangeNYSENasdaqGS
Listing DateMay 25, 2006March 13, 1986
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of MA 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.

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

Historical Performance at a Glance

SymbolMAMSFT
5-Day Price Return1.32%-1.08%
13-Week Price Return4.05%10.86%
26-Week Price Return4.35%21.58%
52-Week Price Return26.53%21.35%
Month-to-Date Return4.72%-5.48%
Year-to-Date Return12.66%19.63%
10-Day Avg. Volume2.36M22.11M
3-Month Avg. Volume2.68M20.62M
3-Month Volatility21.33%15.65%
Beta0.991.04

Profitability

Return on Equity (TTM)

MA

191.02%

Financial Services Industry

Max
40.58%
Q3
20.06%
Median
10.67%
Q1
4.19%
Min
-10.31%

MA’s Return on Equity of 191.02% is exceptionally high, placing it well beyond the typical range for the Financial Services 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.

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

Net Profit Margin (TTM)

MA

44.93%

Financial Services Industry

Max
52.86%
Q3
25.58%
Median
12.23%
Q1
6.64%
Min
-9.92%

A Net Profit Margin of 44.93% places MA in the upper quartile for the Financial Services 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.

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

Operating Profit Margin (TTM)

MA

55.78%

Financial Services Industry

Max
77.28%
Q3
37.68%
Median
18.17%
Q1
9.27%
Min
-8.19%

An Operating Profit Margin of 55.78% places MA in the upper quartile for the Financial Services 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.

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

Profitability at a Glance

SymbolMAMSFT
Return on Equity (TTM)191.02%32.44%
Return on Assets (TTM)27.84%18.20%
Net Profit Margin (TTM)44.93%36.15%
Operating Profit Margin (TTM)55.78%45.29%
Gross Profit Margin (TTM)--68.82%

Financial Strength

Current Ratio (MRQ)

MA

1.16

Financial Services Industry

Max
4.58
Q3
2.59
Median
1.33
Q1
0.69
Min
0.01

For the Financial Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

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.

MA vs. MSFT: A comparison of their Current Ratio (MRQ) against their respective Financial Services and Software industry benchmarks.

Debt-to-Equity Ratio (MRQ)

MA

2.42

Financial Services Industry

Max
4.96
Q3
2.10
Median
0.57
Q1
0.12
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Financial Services industry.

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.

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

Interest Coverage Ratio (TTM)

MA

37.93

Financial Services Industry

Max
136.23
Q3
56.08
Median
6.55
Q1
2.01
Min
-33.27

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial Services industry.

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.

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

Financial Strength at a Glance

SymbolMAMSFT
Current Ratio (MRQ)1.161.35
Quick Ratio (MRQ)1.161.35
Debt-to-Equity Ratio (MRQ)2.420.26
Interest Coverage Ratio (TTM)37.93891.80

Growth

Revenue Growth

MA 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

MA 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)

MA

0.49%

Financial Services Industry

Max
8.18%
Q3
3.60%
Median
1.56%
Q1
0.00%
Min
0.00%

MA’s Dividend Yield of 0.49% is consistent with its peers in the Financial Services industry, providing a dividend return that is standard for its sector.

MSFT

0.64%

Software Industry

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

MSFT’s Dividend Yield of 0.64% 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.

MA vs. MSFT: A comparison of their Dividend Yield (TTM) against their respective Financial Services and Software industry benchmarks.

Dividend Payout Ratio (TTM)

MA

19.15%

Financial Services Industry

Max
155.56%
Q3
63.71%
Median
18.08%
Q1
0.00%
Min
0.00%

MA’s Dividend Payout Ratio of 19.15% is within the typical range for the Financial Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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.

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

Dividend at a Glance

SymbolMAMSFT
Dividend Yield (TTM)0.49%0.64%
Dividend Payout Ratio (TTM)19.15%23.65%

Valuation

Price-to-Earnings Ratio (TTM)

MA

39.22

Financial Services Industry

Max
63.23
Q3
32.10
Median
14.41
Q1
10.81
Min
0.37

A P/E Ratio of 39.22 places MA in the upper quartile for the Financial Services industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

MSFT

37.23

Software Industry

Max
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

MSFT’s P/E Ratio of 37.23 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.

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

Price-to-Sales Ratio (TTM)

MA

17.62

Financial Services Industry

Max
11.16
Q3
5.45
Median
2.61
Q1
1.25
Min
0.04

The P/S Ratio is often not a primary valuation tool in the Financial Services industry.

MSFT

13.46

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

MSFT’s P/S Ratio of 13.46 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.

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

Price-to-Book Ratio (MRQ)

MA

64.98

Financial Services Industry

Max
7.09
Q3
3.79
Median
1.46
Q1
0.83
Min
0.04

At 64.98, MA’s P/B Ratio is at an extreme premium to the Financial Services 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.

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

Valuation at a Glance

SymbolMAMSFT
Price-to-Earnings Ratio (TTM)39.2237.23
Price-to-Sales Ratio (TTM)17.6213.46
Price-to-Book Ratio (MRQ)64.9810.76
Price-to-Free Cash Flow Ratio (TTM)33.5852.94