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MSFT vs. MSTR: Microsoft vs. Strategy Stock Comparison

How do Microsoft (MSFT) and Strategy (MSTR) 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

Microsoft (MSFT) and Strategy (MSTR) both belong to the Software industry, though MSFT is classified under Systems Software while MSTR falls under Application Software.

Company profile comparison for Microsoft (MSFT) and Strategy (MSTR)
Profile ItemMSFTMSTR
NameMicrosoft Corporation Common StockStrategy Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareSoftware
GICS Sub-IndustrySystems SoftwareApplication Software
Market Capitalization3,940.41 billion USD54.57 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateMarch 13, 1986June 11, 1998
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

MSFT
MSTR
GSPC
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Microsoft (MSFT) vs. Strategy (MSTR), 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 Microsoft (MSFT) and Strategy (MSTR). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Microsoft (MSFT) and Strategy (MSTR)
MetricMSFTMSTR
Total Return (1Y)10.30%-48.13%
Total Return (3Y, Annualized)15.53%36.44%
Total Return (5Y, Annualized)11.01%7.87%

Risk Profile

Drawdown History

MSFT
MSTR
GSPC
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Microsoft (MSFT) vs. Strategy (MSTR), 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 Microsoft (MSFT) and Strategy (MSTR). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Strategy (MSTR) carries a highly aggressive beta of 3.60, indicating much higher sensitivity to broad-market moves, whereas Microsoft (MSFT) is closer to market-like at 1.03 — a noticeable difference in market-sensitivity profile.

Risk profile metrics for Microsoft (MSFT) and Strategy (MSTR)
MetricMSFTMSTR
Volatility (1Y, Annualized)33.91%82.34%
Beta (5Y)1.033.60
Max Drawdown (5Y)-37.15%-84.09%
Avg. Volume (3M)22.95M22.35M

Risk-Adjusted Performance

Risk-Return Positioning

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MSFT and MSTR are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Microsoft (MSFT) and Strategy (MSTR)
MetricMSFTMSTR
Sharpe Ratio (1Y)0.18-0.64
Sortino Ratio (1Y)0.28-0.97

Profitability

ROE (TTM)

Strategy (MSTR) reports a negative ROE of -21.59%; negative ROE can reflect losses or negative shareholders’ equity, so it is harder to read as capital efficiency. Meanwhile Microsoft (MSFT) reports 34.22%, ranking against industry peers normally.

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%

MSTR

Software & Services industry group

-21.59%

Max
53.85%
Q3
17.90%
Median
6.59%
Q1
-9.59%
MSTR
-21.59%
Min
-50.52%
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Microsoft (MSFT) vs. Strategy (MSTR): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Microsoft (MSFT) at 41.17% retains a top-quartile share of revenue as profit, ahead of Strategy (MSTR) at 0.00%, which keeps about the industry-typical share.

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%

MSTR

Software & Services industry group

0.00%

Max
41.17%
Q3
15.28%
Median
4.63%
MSTR
0.00%
Q1
-5.42%
Min
-33.17%
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Microsoft (MSFT) vs. Strategy (MSTR): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Strategy (MSTR) reports a negative operating margin of -2.07%, usually indicating that operating costs exceeded revenue at the operating-income line. Meanwhile Microsoft (MSFT) reports 49.76%, ranking against industry peers normally.

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%

MSTR

Software & Services industry group

-2.07%

Max
46.89%
Q3
17.64%
Median
8.73%
MSTR
-2.07%
Q1
-2.13%
Min
-30.45%
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Microsoft (MSFT) vs. Strategy (MSTR): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Microsoft (MSFT) and Strategy (MSTR)
MetricMSFTMSTR
ROE (TTM)34.22%-21.59%
ROA (TTM)14.41%-4.52%
Net Margin (TTM)41.17%0.00%
Operating Margin (TTM)49.76%-2.07%
Gross Margin (TTM)67.66%67.84%

Growth

Revenue Growth

Microsoft (MSFT) at 17.79% is around its peer norm for revenue growth, while Strategy (MSTR) at 2.97% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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Microsoft (MSFT) vs. Strategy (MSTR): A comparison of their Revenue Growth across different time periods.

EPS Growth

Only one side can be read here: Microsoft (MSFT) reports EPS growth of 31.60%, ranked against its industry; Strategy (MSTR) has no EPS growth figure this period.

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Microsoft (MSFT) vs. Strategy (MSTR): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Microsoft (MSFT) and Strategy (MSTR)
MetricMSFTMSTR
Revenue Growth (YoY)17.79%2.97%
Revenue Growth (3Y CAGR)16.12%-1.49%
EPS Growth (YoY)31.60%--
EPS Growth (3Y CAGR)22.86%--

Financial Strength

Current Ratio (MRQ)

Microsoft (MSFT) at 1.23 keeps current ratio within its industry’s typical mid-range, while Strategy (MSTR) at 4.04 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

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

MSTR

Software & Services industry group

4.04

Max
5.11
MSTR
4.04
Q3
2.77
Median
1.67
Q1
1.01
Min
0.03
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Microsoft (MSFT) vs. Strategy (MSTR): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both Microsoft (MSFT) at 0.28 and Strategy (MSTR) at 0.10 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

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

MSTR

Software & Services industry group

0.10

Max
2.52
Q3
1.13
Median
0.40
MSTR
0.10
Q1
0.07
Min
0.00
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Microsoft (MSFT) vs. Strategy (MSTR): A comparison of their debt-to-equity ratio against the Software & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Microsoft (MSFT) and Strategy (MSTR)
MetricMSFTMSTR
Current Ratio (MRQ)1.234.04
Debt / Equity (MRQ)0.280.10
Net Debt / EBITDA0.34--

Dividends

Dividend Yield (TTM)

Strategy (MSTR) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Microsoft (MSFT) reports a yield of 0.69%, ranking against industry peers normally.

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%

MSTR

Software & Services industry group

0.00%

MSTR
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Microsoft (MSFT) vs. Strategy (MSTR): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Strategy (MSTR) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Microsoft (MSFT) reports a payout of 19.00%, ranking against industry peers normally.

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%

MSTR

Software & Services industry group

0.00%

MSTR
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Microsoft (MSFT) vs. Strategy (MSTR): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Microsoft (MSFT) and Strategy (MSTR)
MetricMSFTMSTR
Dividend Yield (TTM)0.69%0.00%
Dividend Payout Ratio (TTM)19.00%0.00%

Valuation

P/E Ratio (TTM)

An earnings multiple is available for just one side: Microsoft (MSFT) trades at 27.69 times trailing earnings, ranked against its peers, while Strategy (MSTR) has no P/E ratio this period.

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

MSTR

Software & Services industry group

--

Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
Min
6.69
MSTR
--
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Microsoft (MSFT) vs. Strategy (MSTR): MSTR does not report P/E ratio, so it has no value marker; MSFT is benchmarked against the Software & Services industry group.

P/S Ratio (TTM)

Both look expensive on sales: Microsoft (MSFT) at 11.37 sits in the upper P/S ratio quartile, and Strategy (MSTR) at 110.23 prices even higher, above its industry range.

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

MSTR

Software & Services industry group

110.23

MSTR
110.23
Max
17.91
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02
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Microsoft (MSFT) vs. Strategy (MSTR): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

Strategy (MSTR) at 0.98 sits in the lower P/B ratio quartile against book while Microsoft (MSFT) at 8.38 is valued near its industry’s middle — MSTR is cheaper on assets, though weigh it against ROE and asset quality.

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

MSTR

Software & Services industry group

0.98

Max
16.63
Q3
8.50
Median
4.30
Q1
1.92
MSTR
0.98
Min
-3.90
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Microsoft (MSFT) vs. Strategy (MSTR): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Microsoft (MSFT) and Strategy (MSTR)
MetricMSFTMSTR
P/E Ratio (TTM)27.69--
P/S Ratio (TTM)11.37110.23
P/B Ratio (MRQ)8.380.98
Free Cash Flow Yield (TTM)0.08%-5.94%