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

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

Company Profile

MSFT is a standard domestic listing, while NOK trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

SymbolMSFTNOK
Company NameMicrosoft CorporationNokia Oyj
CountryUnited StatesFinland
GICS SectorInformation TechnologyInformation Technology
GICS IndustrySoftwareCommunications Equipment
Market Capitalization3,770.33 billion USD23.18 billion USD
ExchangeNasdaqGSNYSE
Listing DateMarch 13, 1986July 1, 1994
Security TypeCommon StockADR

Historical Performance

This chart compares the performance of MSFT and NOK 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.

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

Historical Performance at a Glance

SymbolMSFTNOK
5-Day Price Return-1.91%2.59%
13-Week Price Return12.08%-21.98%
26-Week Price Return23.82%-22.82%
52-Week Price Return19.59%-1.47%
Month-to-Date Return-4.92%2.70%
Year-to-Date Return20.34%-13.79%
10-Day Avg. Volume21.97M7.16M
3-Month Avg. Volume20.57M9.35M
3-Month Volatility15.82%29.91%
Beta1.030.81

Profitability

Return on Equity (TTM)

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.

NOK

5.01%

Communications Equipment Industry

Max
32.05%
Q3
19.58%
Median
11.77%
Q1
2.23%
Min
-11.93%

NOK’s Return on Equity of 5.01% is on par with the norm for the Communications Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.

MSFT vs. NOK: A comparison of their Return on Equity (TTM) against their respective Software and Communications Equipment industry benchmarks.

Net Profit Margin (TTM)

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.

NOK

5.31%

Communications Equipment Industry

Max
23.65%
Q3
14.32%
Median
5.31%
Q1
1.45%
Min
-12.72%

NOK’s Net Profit Margin of 5.31% is aligned with the median group of its peers in the Communications Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.

MSFT vs. NOK: A comparison of their Net Profit Margin (TTM) against their respective Software and Communications Equipment industry benchmarks.

Operating Profit Margin (TTM)

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.

NOK

6.21%

Communications Equipment Industry

Max
42.27%
Q3
18.90%
Median
6.21%
Q1
2.97%
Min
-20.72%

NOK’s Operating Profit Margin of 6.21% is around the midpoint for the Communications Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.

MSFT vs. NOK: A comparison of their Operating Profit Margin (TTM) against their respective Software and Communications Equipment industry benchmarks.

Profitability at a Glance

SymbolMSFTNOK
Return on Equity (TTM)32.44%5.01%
Return on Assets (TTM)18.20%2.68%
Net Profit Margin (TTM)36.15%5.31%
Operating Profit Margin (TTM)45.29%6.21%
Gross Profit Margin (TTM)68.82%44.23%

Financial Strength

Current Ratio (MRQ)

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.

NOK

1.46

Communications Equipment Industry

Max
1.72
Q3
1.72
Median
1.46
Q1
1.18
Min
0.93

NOK’s Current Ratio of 1.46 aligns with the median group of the Communications Equipment industry, indicating that its short-term liquidity is in line with its sector peers.

MSFT vs. NOK: A comparison of their Current Ratio (MRQ) against their respective Software and Communications Equipment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

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.

NOK

0.21

Communications Equipment Industry

Max
1.55
Q3
0.92
Median
0.55
Q1
0.30
Min
0.00

Falling into the lower quartile for the Communications Equipment industry, NOK’s Debt-to-Equity Ratio of 0.21 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

MSFT vs. NOK: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Communications Equipment industry benchmarks.

Interest Coverage Ratio (TTM)

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.

NOK

34.19

Communications Equipment Industry

Max
181.73
Q3
113.63
Median
7.59
Q1
3.82
Min
-5.39

NOK’s Interest Coverage Ratio of 34.19 is positioned comfortably within the norm for the Communications Equipment industry, indicating a standard and healthy capacity to cover its interest payments.

MSFT vs. NOK: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and Communications Equipment industry benchmarks.

Financial Strength at a Glance

SymbolMSFTNOK
Current Ratio (MRQ)1.351.46
Quick Ratio (MRQ)1.351.21
Debt-to-Equity Ratio (MRQ)0.260.21
Interest Coverage Ratio (TTM)891.8034.19

Growth

Revenue Growth

MSFT vs. NOK: 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

MSFT vs. NOK: 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)

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.

NOK

3.61%

Communications Equipment Industry

Max
3.88%
Q3
2.75%
Median
0.93%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 3.61%, NOK offers a more attractive income stream than most of its peers in the Communications Equipment industry, signaling a strong commitment to shareholder returns.

MSFT vs. NOK: A comparison of their Dividend Yield (TTM) against their respective Software and Communications Equipment industry benchmarks.

Dividend Payout Ratio (TTM)

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.

NOK

50.74%

Communications Equipment Industry

Max
111.16%
Q3
55.91%
Median
28.42%
Q1
0.00%
Min
0.00%

NOK’s Dividend Payout Ratio of 50.74% is within the typical range for the Communications Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

MSFT vs. NOK: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Communications Equipment industry benchmarks.

Dividend at a Glance

SymbolMSFTNOK
Dividend Yield (TTM)0.64%3.61%
Dividend Payout Ratio (TTM)23.65%50.74%

Valuation

Price-to-Earnings Ratio (TTM)

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.

NOK

19.25

Communications Equipment Industry

Max
57.30
Q3
47.92
Median
27.50
Q1
17.89
Min
13.89

NOK’s P/E Ratio of 19.25 is within the middle range for the Communications Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

MSFT vs. NOK: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Communications Equipment industry benchmarks.

Price-to-Sales Ratio (TTM)

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.

NOK

1.02

Communications Equipment Industry

Max
11.03
Q3
5.53
Median
2.20
Q1
0.99
Min
0.40

NOK’s P/S Ratio of 1.02 aligns with the market consensus for the Communications Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

MSFT vs. NOK: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Communications Equipment industry benchmarks.

Price-to-Book Ratio (MRQ)

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.

NOK

1.21

Communications Equipment Industry

Max
9.66
Q3
5.60
Median
3.73
Q1
2.67
Min
0.30

NOK’s P/B Ratio of 1.21 is in the lower quartile for the Communications Equipment industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

MSFT vs. NOK: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Communications Equipment industry benchmarks.

Valuation at a Glance

SymbolMSFTNOK
Price-to-Earnings Ratio (TTM)37.2319.25
Price-to-Sales Ratio (TTM)13.461.02
Price-to-Book Ratio (MRQ)10.761.21
Price-to-Free Cash Flow Ratio (TTM)52.9413.27