MSFT vs. NVDA: A Head-to-Head Stock Comparison
Here'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 Group | Software & Services | Semiconductors & Semiconductor Equipment |
| GICS Industry | Software | Semiconductors & Semiconductor Equipment |
| GICS Sub-Industry | Systems Software | Semiconductors |
| Market Capitalization | 2,651.65 billion USD | 4,071.57 billion USD |
| Currency | USD | USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | March 13, 1986 | January 22, 1999 |
| Security Type | Common Stock | Common Stock |
NVDA's market capitalization (4,071.57 billion USD) is significantly greater than MSFT's (2,651.65 billion USD), highlighting its more substantial market valuation.
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 | -6.85% | -4.62% |
| 13-Week Price Return | -26.72% | -11.46% |
| 26-Week Price Return | -30.65% | -8.76% |
| 52-Week Price Return | -8.66% | 50.34% |
| Month-to-Date Return | -9.16% | -5.46% |
| Year-to-Date Return | -26.23% | -10.18% |
| 10-Day Avg. Volume | 33.42M | 184.43M |
| 3-Month Avg. Volume | 31.93M | 183.22M |
| 3-Month Volatility | 31.19% | 34.67% |
| Beta | 1.11 | 2.34 |
NVDA carries a higher beta at 2.34, indicating it's more sensitive to market moves, while MSFT (beta: 1.11) exhibits greater stability.
Profitability
Return on Equity (TTM)
MSFT
33.61%
Software Industry
- Max
- 66.50%
- Q3
- 24.82%
- Median
- 10.79%
- Q1
- -3.84%
- Min
- -39.77%
In the upper quartile for the Software industry, MSFT's Return on Equity of 33.61% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
NVDA
104.37%
Semiconductors & Semiconductor Equipment Industry
- Max
- 48.79%
- Q3
- 20.92%
- Median
- 8.73%
- Q1
- 2.09%
- Min
- -24.06%
NVDA's Return on Equity of 104.37% 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
39.04%
Software Industry
- Max
- 48.76%
- Q3
- 19.91%
- Median
- 12.47%
- Q1
- -2.50%
- Min
- -35.22%
A Net Profit Margin of 39.04% places MSFT in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.
NVDA
55.60%
Semiconductors & Semiconductor Equipment Industry
- Max
- 45.10%
- Q3
- 22.41%
- Median
- 11.83%
- Q1
- 2.45%
- Min
- -25.22%
NVDA's Net Profit Margin of 55.60% 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
46.62%
Software Industry
- Max
- 68.47%
- Q3
- 25.57%
- Median
- 13.86%
- Q1
- -3.24%
- Min
- -32.09%
An Operating Profit Margin of 46.62% 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
60.38%
Semiconductors & Semiconductor Equipment Industry
- Max
- 60.38%
- Q3
- 28.32%
- Median
- 13.08%
- Q1
- 5.01%
- Min
- -26.89%
An Operating Profit Margin of 60.38% places NVDA in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | MSFT | NVDA |
|---|---|---|
| Return on Equity (TTM) | 33.61% | 104.37% |
| Return on Assets (TTM) | 19.21% | 75.76% |
| Net Profit Margin (TTM) | 39.04% | 55.60% |
| Operating Profit Margin (TTM) | 46.62% | 60.38% |
| Gross Profit Margin (TTM) | 68.59% | 71.31% |
Financial Strength
Current Ratio (MRQ)
MSFT
1.39
Software Industry
- Max
- 3.83
- Q3
- 2.28
- Median
- 1.53
- Q1
- 1.04
- Min
- 0.25
MSFT's Current Ratio of 1.39 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.
NVDA
3.91
Semiconductors & Semiconductor Equipment Industry
- Max
- 6.51
- Q3
- 4.39
- Median
- 2.91
- Q1
- 2.26
- Min
- 1.09
NVDA's Current Ratio of 3.91 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
- 2.40
- Q3
- 1.00
- Median
- 0.30
- 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
0.05
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.34
- Q3
- 0.56
- Median
- 0.23
- Q1
- 0.02
- Min
- 0.00
NVDA's Debt-to-Equity Ratio of 0.05 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
- 45.58
- Q3
- 19.54
- Median
- 2.79
- Q1
- -7.11
- Min
- -46.66
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
- 158.70
- Q3
- 65.13
- Median
- 17.46
- Q1
- 2.75
- Min
- -42.79
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) | 1.39 | 3.91 |
| Quick Ratio (MRQ) | 1.38 | 3.14 |
| Debt-to-Equity Ratio (MRQ) | 0.26 | 0.05 |
| Interest Coverage Ratio (TTM) | 891.80 | 75.66 |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | MSFT | NVDA |
|---|---|---|
| Revenue Growth (MRQ vs Prior YoY) | 16.72% | 73.21% |
| Revenue Growth (TTM vs Prior YoY) | 16.67% | 65.47% |
| 3-Year Revenue CAGR | 12.42% | 100.05% |
| 5-Year Revenue CAGR | 14.52% | 66.90% |
EPS Growth
EPS Growth at a Glance
| Symbol | MSFT | NVDA |
|---|---|---|
| EPS Growth (MRQ vs Prior YoY) | 59.69% | 96.66% |
| EPS Growth (TTM vs Prior YoY) | 28.74% | 66.76% |
| 3-Year EPS CAGR | 12.24% | 204.08% |
| 5-Year EPS CAGR | 18.80% | 95.27% |
Dividend
Dividend Yield (TTM)
MSFT
0.95%
Software Industry
- Max
- 1.16%
- Q3
- 0.49%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 0.95%, MSFT offers a more attractive income stream than most of its peers in the Software industry, signaling a strong commitment to shareholder returns.
NVDA
0.02%
Semiconductors & Semiconductor Equipment Industry
- Max
- 2.18%
- Q3
- 1.06%
- Median
- 0.45%
- 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
21.19%
Software Industry
- Max
- 45.50%
- Q3
- 19.02%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MSFT's Dividend Payout Ratio of 21.19% is in the upper quartile for the Software industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
NVDA
0.81%
Semiconductors & Semiconductor Equipment Industry
- Max
- 168.19%
- Q3
- 77.31%
- Median
- 26.23%
- Q1
- 0.00%
- Min
- 0.00%
NVDA's Dividend Payout Ratio of 0.81% 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) | 0.95% | 0.02% |
| Dividend Payout Ratio (TTM) | 21.19% | 0.81% |
Valuation
Price-to-Earnings Ratio (TTM)
MSFT
22.21
Software Industry
- Max
- 114.62
- Q3
- 58.24
- Median
- 28.75
- Q1
- 19.84
- Min
- 10.15
MSFT's P/E Ratio of 22.21 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
33.90
Semiconductors & Semiconductor Equipment Industry
- Max
- 104.33
- Q3
- 60.17
- Median
- 44.10
- Q1
- 29.50
- Min
- 13.36
NVDA's P/E Ratio of 33.90 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
8.67
Software Industry
- Max
- 15.48
- Q3
- 8.99
- Median
- 4.65
- Q1
- 3.18
- Min
- 0.76
MSFT's P/S Ratio of 8.67 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.
NVDA
18.85
Semiconductors & Semiconductor Equipment Industry
- Max
- 26.34
- Q3
- 12.53
- Median
- 5.61
- Q1
- 3.02
- Min
- 1.07
NVDA's P/S Ratio of 18.85 is in the upper echelon for the Semiconductors & Semiconductor Equipment 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.
Price-to-Book Ratio (MRQ)
MSFT
9.20
Software Industry
- Max
- 26.28
- Q3
- 12.87
- Median
- 7.01
- Q1
- 3.81
- Min
- 0.38
MSFT's P/B Ratio of 9.20 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
28.81
Semiconductors & Semiconductor Equipment Industry
- Max
- 15.44
- Q3
- 7.99
- Median
- 3.98
- Q1
- 1.93
- Min
- 0.69
At 28.81, 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) | 22.21 | 33.90 |
| Price-to-Sales Ratio (TTM) | 8.67 | 18.85 |
| Price-to-Book Ratio (MRQ) | 9.20 | 28.81 |
| Price-to-Free Cash Flow Ratio (TTM) | 34.22 | 42.11 |