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META vs. MSFT: Meta Platforms vs. Microsoft Stock Comparison

How do Meta Platforms (META) 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

Meta Platforms (META) is classified in the Communication Services sector (Media & Entertainment), whereas Microsoft (MSFT) belongs to Information Technology (Software & Services) — their GICS classifications point to very different parts of the market.

Company profile comparison for Meta Platforms (META) and Microsoft (MSFT)
Profile ItemMETAMSFT
NameMeta Platforms Inc. Class A Common StockMicrosoft Corporation Common Stock
Country/RegionUnited StatesUnited States
GICS SectorCommunication ServicesInformation Technology
GICS Industry GroupMedia & EntertainmentSoftware & Services
GICS IndustryInteractive Media & ServicesSoftware
GICS Sub-IndustryInteractive Media & ServicesSystems Software
Market Capitalization1,650.86 billion USD3,680.32 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateMay 18, 2012March 13, 1986
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

META
MSFT
GSPC
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Meta Platforms (META) 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

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Trailing total returns for Meta Platforms (META) and Microsoft (MSFT). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Meta Platforms (META) and Microsoft (MSFT). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Meta Platforms (META) and Microsoft (MSFT)
MetricMETAMSFT
Total Return (1Y)-13.42%-0.26%
Total Return (3Y, Annualized)28.57%14.50%
Total Return (5Y, Annualized)11.54%11.80%

Risk Profile

Drawdown History

META
MSFT
GSPC
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Meta Platforms (META) 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

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Distribution of monthly total returns for Meta Platforms (META) and Microsoft (MSFT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Meta Platforms (META) and Microsoft (MSFT)
MetricMETAMSFT
Volatility (1Y, Annualized)39.47%32.48%
Beta (5Y)1.201.11
Max Drawdown (5Y)-76.39%-37.15%
Avg. Volume (3M)18.19M35.62M

Risk-Adjusted Performance

Risk-Return Positioning

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META 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 Meta Platforms (META) and Microsoft (MSFT)
MetricMETAMSFT
Sharpe Ratio (1Y)-0.45-0.14
Sortino Ratio (1Y)-0.63-0.21

Profitability

ROE (TTM)

Both Meta Platforms (META) at 29.85% and Microsoft (MSFT) at 34.04% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

META

Media & Entertainment industry group

29.85%

Max
45.82%
META
29.85%
Q3
16.48%
Median
6.89%
Q1
-3.55%
Min
-26.31%

MSFT

Software & Services industry group

34.04%

Max
62.27%
MSFT
34.04%
Q3
17.93%
Median
5.25%
Q1
-14.34%
Min
-59.77%
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Meta Platforms (META) vs. Microsoft (MSFT): A comparison of their ROE against their respective Media & Entertainment and Software & Services industry group benchmarks.

Net Margin (TTM)

For every dollar of sales, both Meta Platforms (META) at 29.84% and Microsoft (MSFT) at 40.31% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

META

Media & Entertainment industry group

29.84%

META
29.84%
Max
29.84%
Q3
10.43%
Median
4.53%
Q1
-3.40%
Min
-17.61%

MSFT

Software & Services industry group

40.31%

Max
41.43%
MSFT
40.31%
Q3
14.96%
Median
3.57%
Q1
-6.01%
Min
-35.38%
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Meta Platforms (META) vs. Microsoft (MSFT): A comparison of their net margin against their respective Media & Entertainment and Software & Services industry group benchmarks.

Operating Margin (TTM)

Both Meta Platforms (META) at 34.83% and Microsoft (MSFT) at 45.11% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

META

Media & Entertainment industry group

34.83%

Max
40.16%
META
34.83%
Q3
18.59%
Median
10.04%
Q1
0.82%
Min
-19.55%

MSFT

Software & Services industry group

45.11%

Max
47.12%
MSFT
45.11%
Q3
15.43%
Median
4.85%
Q1
-7.55%
Min
-39.13%
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Meta Platforms (META) vs. Microsoft (MSFT): A comparison of their operating margin against their respective Media & Entertainment and Software & Services industry group benchmarks.

Profitability Metrics

Profitability metrics for Meta Platforms (META) and Microsoft (MSFT)
MetricMETAMSFT
ROE (TTM)29.85%34.04%
ROA (TTM)14.59%14.09%
Net Margin (TTM)29.84%40.31%
Operating Margin (TTM)34.83%45.11%
Gross Margin (TTM)81.75%67.94%

Growth

Revenue Growth

Meta Platforms (META) at 22.17% sits in the top revenue growth quartile, while Microsoft (MSFT) at 17.79% is closer to the peer norm — faster top-line expansion for META.

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Meta Platforms (META) vs. Microsoft (MSFT): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Meta Platforms (META) at -1.55% and Microsoft (MSFT) at 31.60% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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Meta Platforms (META) vs. Microsoft (MSFT): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Meta Platforms (META) and Microsoft (MSFT)
MetricMETAMSFT
Revenue Growth (YoY)22.17%17.79%
Revenue Growth (3Y CAGR)19.89%16.12%
EPS Growth (YoY)-1.55%31.60%
EPS Growth (3Y CAGR)39.84%22.86%

Financial Strength

Current Ratio (MRQ)

Both Meta Platforms (META) at 2.23 and Microsoft (MSFT) at 1.23 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

META

Media & Entertainment industry group

2.23

Max
4.50
Q3
2.38
META
2.23
Median
1.45
Q1
0.86
Min
0.23

MSFT

Software & Services industry group

1.23

Max
5.67
Q3
2.95
Median
1.63
MSFT
1.23
Q1
1.01
Min
0.03
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Meta Platforms (META) vs. Microsoft (MSFT): A comparison of their current ratio against their respective Media & Entertainment and Software & Services industry group benchmarks.

Debt / Equity (MRQ)

Both Meta Platforms (META) at 0.43 and Microsoft (MSFT) at 0.29 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

META

Media & Entertainment industry group

0.43

Max
2.66
Q3
1.44
Median
0.51
META
0.43
Q1
0.17
Min
0.00

MSFT

Software & Services industry group

0.29

Max
2.62
Q3
1.09
Median
0.35
MSFT
0.29
Q1
0.06
Min
0.00
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Meta Platforms (META) vs. Microsoft (MSFT): A comparison of their debt-to-equity ratio against their respective Media & Entertainment and Software & Services industry group benchmarks.

Financial Strength Metrics

Financial strength metrics for Meta Platforms (META) and Microsoft (MSFT)
MetricMETAMSFT
Current Ratio (MRQ)2.231.23
Debt / Equity (MRQ)0.430.29
Net Debt / EBITDA0.200.27

Dividends

Dividend Yield (TTM)

Meta Platforms (META) at 0.33% pays an industry-typical yield; Microsoft (MSFT) at 0.74% 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.

META

Media & Entertainment industry group

0.33%

Max
1.42%
Q3
0.61%
META
0.33%
Median
0.00%
Q1
0.00%
Min
0.00%

MSFT

Software & Services industry group

0.74%

MSFT
0.74%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Meta Platforms (META) vs. Microsoft (MSFT): A comparison of their dividend yield against their respective Media & Entertainment and Software & Services industry group benchmarks.

Dividend Payout Ratio (TTM)

Meta Platforms (META) at 7.91% keeps its payout in the industry’s typical band, while Microsoft (MSFT) at 19.83% pays out more than any of its peers — the most stretched cover in its group.

META

Media & Entertainment industry group

7.91%

Max
43.37%
Q3
19.42%
META
7.91%
Median
0.00%
Q1
0.00%
Min
0.00%

MSFT

Software & Services industry group

19.83%

MSFT
19.83%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Meta Platforms (META) vs. Microsoft (MSFT): A comparison of their payout ratio against their respective Media & Entertainment and Software & Services industry group benchmarks.

Dividend Metrics

Dividend metrics for Meta Platforms (META) and Microsoft (MSFT)
MetricMETAMSFT
Dividend Yield (TTM)0.33%0.74%
Dividend Payout Ratio (TTM)7.91%19.83%

Valuation

P/E Ratio (TTM)

Both Meta Platforms (META) at 24.39 and Microsoft (MSFT) at 27.63 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

META

Media & Entertainment industry group

24.39

Max
71.36
Q3
37.90
META
24.39
Median
18.95
Q1
10.54
Min
1.77

MSFT

Software & Services industry group

27.63

Max
102.14
Q3
55.34
Median
28.53
MSFT
27.63
Q1
16.18
Min
0.36
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Meta Platforms (META) vs. Microsoft (MSFT): A comparison of their P/E ratio against their respective Media & Entertainment and Software & Services industry group benchmarks.

P/S Ratio (TTM)

Both Meta Platforms (META) at 7.23 and Microsoft (MSFT) at 11.09 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.

META

Media & Entertainment industry group

7.23

Max
7.24
META
7.23
Q3
3.54
Median
1.43
Q1
0.55
Min
0.00

MSFT

Software & Services industry group

11.09

Max
20.02
MSFT
11.09
Q3
9.37
Median
4.56
Q1
2.27
Min
0.02
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Meta Platforms (META) vs. Microsoft (MSFT): A comparison of their P/S ratio against their respective Media & Entertainment and Software & Services industry group benchmarks.

P/B Ratio (MRQ)

Microsoft (MSFT) at 8.32 is valued about in line with its industry on P/B ratio, while Meta Platforms (META) at 6.32 carries an above-peer premium to book — META is pricier on assets.

META

Media & Entertainment industry group

6.32

Max
11.38
META
6.32
Q3
5.03
Median
1.89
Q1
0.75
Min
-3.64

MSFT

Software & Services industry group

8.32

Max
19.40
Q3
9.11
MSFT
8.32
Median
4.43
Q1
2.02
Min
-5.19
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Meta Platforms (META) vs. Microsoft (MSFT): A comparison of their P/B ratio against their respective Media & Entertainment and Software & Services industry group benchmarks.

Valuation Metrics

Valuation metrics for Meta Platforms (META) and Microsoft (MSFT)
MetricMETAMSFT
P/E Ratio (TTM)24.3927.63
P/S Ratio (TTM)7.2311.09
P/B Ratio (MRQ)6.328.32
Free Cash Flow Yield (TTM)1.31%0.45%