MSFT vs. NVDA: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at MSFT and NVDA, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | MSFT | NVDA |
|---|---|---|
| Company Name | Microsoft Corporation | NVIDIA Corporation |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Software | Semiconductors & Semiconductor Equipment |
| Market Capitalization | 3,830.76 billion USD | 4,329.39 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | March 13, 1986 | January 22, 1999 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of MSFT and NVDA 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.
Historical Performance at a Glance
| Symbol | MSFT | NVDA |
|---|---|---|
| 5-Day Price Return | 3.40% | 4.09% |
| 13-Week Price Return | 7.62% | 22.59% |
| 26-Week Price Return | 35.46% | 63.43% |
| 52-Week Price Return | 20.69% | 49.19% |
| Month-to-Date Return | 1.71% | 2.05% |
| Year-to-Date Return | 22.27% | 32.36% |
| 10-Day Avg. Volume | 19.44M | 173.30M |
| 3-Month Avg. Volume | 19.99M | 186.69M |
| 3-Month Volatility | 16.25% | 26.70% |
| Beta | 1.03 | 2.14 |
Profitability
Return on Equity (TTM)
MSFT
32.44%
Software Industry
- Max
- 60.18%
- Q3
- 21.97%
- Median
- 8.49%
- Q1
- -10.19%
- Min
- -54.78%
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.
NVDA
105.22%
Semiconductors & Semiconductor Equipment Industry
- Max
- 47.13%
- Q3
- 23.84%
- Median
- 10.37%
- Q1
- 1.60%
- Min
- -20.69%
NVDA’s Return on Equity of 105.22% is exceptionally high, placing it well beyond the typical range for the Semiconductors & Semiconductor Equipment industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Net Profit Margin (TTM)
MSFT
36.15%
Software Industry
- Max
- 51.92%
- Q3
- 19.16%
- Median
- 5.94%
- Q1
- -8.25%
- 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.
NVDA
52.41%
Semiconductors & Semiconductor Equipment Industry
- Max
- 51.69%
- Q3
- 22.38%
- Median
- 10.40%
- Q1
- 1.85%
- Min
- -14.88%
NVDA’s Net Profit Margin of 52.41% is exceptionally high, placing it well beyond the typical range for the Semiconductors & Semiconductor Equipment industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
Operating Profit Margin (TTM)
MSFT
45.29%
Software Industry
- Max
- 60.40%
- Q3
- 21.25%
- Median
- 9.04%
- Q1
- -5.43%
- Min
- -43.50%
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.
NVDA
58.09%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.03%
- Q3
- 28.66%
- Median
- 11.70%
- Q1
- 3.44%
- Min
- -28.61%
NVDA’s Operating Profit Margin of 58.09% is exceptionally high, placing it well above the typical range for the Semiconductors & Semiconductor Equipment industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | MSFT | NVDA |
|---|---|---|
| Return on Equity (TTM) | 32.44% | 105.22% |
| Return on Assets (TTM) | 18.20% | 73.14% |
| Net Profit Margin (TTM) | 36.15% | 52.41% |
| Operating Profit Margin (TTM) | 45.29% | 58.09% |
| Gross Profit Margin (TTM) | 68.82% | 70.20% |
Financial Strength
Current Ratio (MRQ)
MSFT
1.35
Software Industry
- Max
- 4.37
- Q3
- 2.37
- Median
- 1.39
- Q1
- 1.03
- Min
- 0.25
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.
NVDA
4.21
Semiconductors & Semiconductor Equipment Industry
- Max
- 7.43
- Q3
- 4.30
- Median
- 2.66
- Q1
- 2.01
- Min
- 1.02
NVDA’s Current Ratio of 4.21 aligns with the median group of the Semiconductors & Semiconductor Equipment industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
MSFT
0.26
Software Industry
- Max
- 2.06
- Q3
- 0.84
- Median
- 0.31
- 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.
NVDA
0.08
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.09
- Q3
- 0.47
- Median
- 0.22
- Q1
- 0.01
- Min
- 0.00
NVDA’s Debt-to-Equity Ratio of 0.08 is typical for the Semiconductors & Semiconductor Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
MSFT
891.80
Software Industry
- Max
- 89.65
- Q3
- 32.51
- Median
- 0.85
- Q1
- -10.73
- Min
- -71.23
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.
NVDA
75.66
Semiconductors & Semiconductor Equipment Industry
- Max
- 166.79
- Q3
- 71.51
- Median
- 24.89
- Q1
- 6.61
- Min
- -7.80
NVDA’s Interest Coverage Ratio of 75.66 is in the upper quartile for the Semiconductors & Semiconductor Equipment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | MSFT | NVDA |
|---|---|---|
| Current Ratio (MRQ) | 1.35 | 4.21 |
| Quick Ratio (MRQ) | 1.35 | 3.49 |
| Debt-to-Equity Ratio (MRQ) | 0.26 | 0.08 |
| Interest Coverage Ratio (TTM) | 891.80 | 75.66 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
MSFT
0.63%
Software Industry
- Max
- 0.23%
- Q3
- 0.12%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MSFT’s Dividend Yield of 0.63% 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.
NVDA
0.02%
Semiconductors & Semiconductor Equipment Industry
- Max
- 3.94%
- Q3
- 1.69%
- Median
- 0.77%
- Q1
- 0.00%
- Min
- 0.00%
NVDA’s Dividend Yield of 0.02% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
MSFT
23.65%
Software Industry
- Max
- 3.29%
- Q3
- 2.11%
- 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.
NVDA
1.13%
Semiconductors & Semiconductor Equipment Industry
- Max
- 201.29%
- Q3
- 86.84%
- Median
- 23.64%
- Q1
- 0.00%
- Min
- 0.00%
NVDA’s Dividend Payout Ratio of 1.13% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | MSFT | NVDA |
|---|---|---|
| Dividend Yield (TTM) | 0.63% | 0.02% |
| Dividend Payout Ratio (TTM) | 23.65% | 1.13% |
Valuation
Price-to-Earnings Ratio (TTM)
MSFT
37.27
Software Industry
- Max
- 161.39
- Q3
- 92.80
- Median
- 46.10
- Q1
- 25.97
- Min
- 8.39
MSFT’s P/E Ratio of 37.27 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.
NVDA
49.31
Semiconductors & Semiconductor Equipment Industry
- Max
- 113.24
- Q3
- 65.00
- Median
- 32.53
- Q1
- 21.56
- Min
- 11.53
NVDA’s P/E Ratio of 49.31 is within the middle range for the Semiconductors & Semiconductor 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.
Price-to-Sales Ratio (TTM)
MSFT
13.47
Software Industry
- Max
- 22.64
- Q3
- 12.67
- Median
- 7.77
- Q1
- 4.73
- Min
- 0.89
MSFT’s P/S Ratio of 13.47 is in the upper echelon for the Software industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
NVDA
25.85
Semiconductors & Semiconductor Equipment Industry
- Max
- 16.97
- Q3
- 9.44
- Median
- 4.98
- Q1
- 2.52
- Min
- 0.90
With a P/S Ratio of 25.85, NVDA trades at a valuation that eclipses even the highest in the Semiconductors & Semiconductor Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio (MRQ)
MSFT
10.76
Software Industry
- Max
- 30.95
- Q3
- 15.05
- Median
- 8.49
- Q1
- 3.58
- 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.
NVDA
43.07
Semiconductors & Semiconductor Equipment Industry
- Max
- 13.56
- Q3
- 6.92
- Median
- 4.04
- Q1
- 2.08
- Min
- 0.65
At 43.07, NVDA’s P/B Ratio is at an extreme premium to the Semiconductors & Semiconductor Equipment 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.
Valuation at a Glance
| Symbol | MSFT | NVDA |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 37.27 | 49.31 |
| Price-to-Sales Ratio (TTM) | 13.47 | 25.85 |
| Price-to-Book Ratio (MRQ) | 10.76 | 43.07 |
| Price-to-Free Cash Flow Ratio (TTM) | 53.00 | 59.29 |