Microsoft (MSFT) vs. Nvidia (NVDA)

Company Profile

Microsoft (MSFT) and Nvidia (NVDA) share the Information Technology sector but sit in different industry groups — MSFT in Software & Services and NVDA in Semiconductors & Semiconductor Equipment.

Historical Performance

Nvidia (NVDA) carries a highly aggressive beta of 2.26, indicating much higher sensitivity to broad-market moves, whereas Microsoft (MSFT) is closer to market-like at 1.09 — a noticeable difference in market-sensitivity profile.

Historical Performance at a Glance

Profitability

Nvidia (NVDA) leads with Return on Equity (TTM) of 111.66%, above its industry benchmark range, while Microsoft (MSFT) at 33.13% also ranks strongly in the top quartile.

Nvidia (NVDA) leads with Net Profit Margin (TTM) of 62.97%, above its industry benchmark range, while Microsoft (MSFT) at 39.34% also ranks strongly in the top quartile.

Both Microsoft (MSFT) at 46.75% and Nvidia (NVDA) at 64.02% rank in the top quartile for Operating Profit Margin (TTM) among industry peers, indicating both companies convert revenue into operating income more strongly than typical competitors.

Profitability at a Glance

Financial Strength

Both Microsoft (MSFT) at 1.28 and Nvidia (NVDA) at 3.44 carry Current Ratio (MRQ) within their industry mid-ranges, suggesting balanced short-term liquidity relative to peers.

Both Microsoft (MSFT) at 0.25 and Nvidia (NVDA) at 0.04 post Debt-to-Equity Ratio (MRQ) near their industry mid-ranges, so neither company stands out strongly from peers on leverage.

Microsoft (MSFT) leads with Interest Coverage Ratio (TTM) of 891.80, above its industry benchmark range, while Nvidia (NVDA) at 75.66 also ranks strongly in the top quartile.

Financial Strength at a Glance

Growth

Revenue Growth

Revenue Growth at a Glance

EPS Growth

EPS Growth at a Glance

Dividend

Both Microsoft (MSFT) at 0.83% and Nvidia (NVDA) at 0.02% report Dividend Yield (TTM) near their industry mid-ranges, so neither company stands out strongly from peers on cash yield relative to share price.

Nvidia (NVDA) at 0.61% maintains Dividend Payout Ratio (TTM) around its industry median — a balanced dividend policy. Microsoft (MSFT) at 20.65% sits outside the typical mid-range, leaning toward more retention or more distribution than the industry median.

Dividend at a Glance

Valuation

Nvidia (NVDA) at 33.98 trades in the lower-multiple quartile for Price-to-Earnings Ratio (TTM), while Microsoft (MSFT) at 24.92 sits around the industry midpoint — NVDA has a lower trailing earnings multiple relative to peers, though the gap should be read alongside growth and earnings quality.

Both Microsoft (MSFT) at 9.80 and Nvidia (NVDA) at 21.39 trade in the higher-multiple quartile for Price-to-Sales Ratio (TTM) among industry peers, indicating higher trailing revenue multiples than typical peers.

Microsoft (MSFT) at 6.63 hovers around the typical industry Price-to-Book Ratio (MRQ), while Nvidia (NVDA) at 26.93 sits above its industry benchmark range — an elevated book-value multiple for NVDA relative to peers.

Valuation at a Glance