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MSFT vs. OKTA: Microsoft vs. Okta Stock Comparison

How do Microsoft (MSFT) and Okta (OKTA) 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 Okta (OKTA) both fall under the Software & Services industry group, but MSFT is classified in Software while OKTA is classified in IT Services.

Company profile comparison for Microsoft (MSFT) and Okta (OKTA)
Profile ItemMSFTOKTA
NameMicrosoft CorporationOkta Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareIT Services
GICS Sub-IndustrySystems SoftwareInternet Services & Infrastructure
Market Capitalization3,678.62 billion USD25.62 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateMarch 13, 1986April 7, 2017
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

MSFT
OKTA
GSPC
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Microsoft (MSFT) vs. Okta (OKTA), 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 Okta (OKTA). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Microsoft (MSFT) and Okta (OKTA)
MetricMSFTOKTA
Total Return (1Y)-4.43%66.38%
Total Return (3Y, Annualized)16.10%26.83%
Total Return (5Y, Annualized)12.00%-8.97%

Risk Profile

Drawdown History

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

Risk Metrics

Risk profile metrics for Microsoft (MSFT) and Okta (OKTA)
MetricMSFTOKTA
Volatility (1Y, Annualized)32.14%57.20%
Beta (5Y)1.110.77
Max Drawdown (5Y)-37.15%-83.43%
Avg. Volume (3M)40.35M3.63M

Risk-Adjusted Performance

Risk-Return Positioning

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MSFT and OKTA 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 Okta (OKTA)
MetricMSFTOKTA
Sharpe Ratio (1Y)-0.261.09
Sortino Ratio (1Y)-0.401.90

Profitability

ROE (TTM)

Microsoft (MSFT) at 34.04% sits in the top ROE quartile, while Okta (OKTA) at 3.67% is closer to the peer norm — stronger capital efficiency for MSFT.

MSFT

Software & Services industry group

34.04%

Max
62.27%
MSFT
34.04%
Q3
16.91%
Median
5.27%
Q1
-13.73%
Min
-54.87%

OKTA

Software & Services industry group

3.67%

Max
62.27%
Q3
16.91%
Median
5.27%
OKTA
3.67%
Q1
-13.73%
Min
-54.87%
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Microsoft (MSFT) vs. Okta (OKTA): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Microsoft (MSFT) at 40.31% retains a top-quartile share of revenue as profit, ahead of Okta (OKTA) at 8.24%, which keeps about the industry-typical share.

MSFT

Software & Services industry group

40.31%

Max
41.99%
MSFT
40.31%
Q3
15.18%
Median
3.79%
Q1
-5.84%
Min
-30.39%

OKTA

Software & Services industry group

8.24%

Max
41.99%
Q3
15.18%
OKTA
8.24%
Median
3.79%
Q1
-5.84%
Min
-30.39%
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Microsoft (MSFT) vs. Okta (OKTA): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Microsoft (MSFT) at 45.11% operates in the top operating margin quartile, ahead of Okta (OKTA) at 7.32%, which runs around its industry’s norm.

MSFT

Software & Services industry group

45.11%

Max
47.12%
MSFT
45.11%
Q3
15.23%
Median
4.59%
Q1
-6.33%
Min
-32.77%

OKTA

Software & Services industry group

7.32%

Max
47.12%
Q3
15.23%
OKTA
7.32%
Median
4.59%
Q1
-6.33%
Min
-32.77%
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Microsoft (MSFT) vs. Okta (OKTA): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Microsoft (MSFT) and Okta (OKTA)
MetricMSFTOKTA
ROE (TTM)34.04%3.67%
ROA (TTM)14.09%1.14%
Net Margin (TTM)40.31%8.24%
Operating Margin (TTM)45.11%7.32%
Gross Margin (TTM)67.94%77.44%

Growth

Revenue Growth

Both Microsoft (MSFT) at 17.79% and Okta (OKTA) at 11.84% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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

EPS Growth

Okta (OKTA) at 2,083.33% clears its industry range for EPS growth, a much stronger earnings trajectory than Microsoft (MSFT) at 31.60%, which is closer to a typical peer reading.

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

Growth Metrics

Growth metrics for Microsoft (MSFT) and Okta (OKTA)
MetricMSFTOKTA
Revenue Growth (YoY)17.79%11.84%
Revenue Growth (3Y CAGR)16.12%16.25%
EPS Growth (YoY)31.60%2,083.33%
EPS Growth (3Y CAGR)22.86%--

Financial Strength

Current Ratio (MRQ)

Both Microsoft (MSFT) at 1.23 and Okta (OKTA) at 1.43 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

MSFT

Software & Services industry group

1.23

Max
5.39
Q3
2.79
Median
1.63
MSFT
1.23
Q1
1.03
Min
0.03

OKTA

Software & Services industry group

1.43

Max
5.39
Q3
2.79
Median
1.63
OKTA
1.43
Q1
1.03
Min
0.03
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Microsoft (MSFT) vs. Okta (OKTA): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Okta (OKTA) at 0.06 keeps leverage in the lower industry quartile, while Microsoft (MSFT) at 0.29 runs a more typical debt-to-equity mix.

MSFT

Software & Services industry group

0.29

Max
2.42
Q3
1.07
Median
0.33
MSFT
0.29
Q1
0.06
Min
0.00

OKTA

Software & Services industry group

0.06

Max
2.42
Q3
1.07
Median
0.33
Q1
0.06
OKTA
0.06
Min
0.00
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Microsoft (MSFT) vs. Okta (OKTA): 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 Okta (OKTA)
MetricMSFTOKTA
Current Ratio (MRQ)1.231.43
Debt / Equity (MRQ)0.290.06
Net Debt / EBITDA0.27-8.16

Dividends

Dividend Yield (TTM)

Okta (OKTA) 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 0.73%, ranking against industry peers normally.

MSFT

Software & Services industry group

0.73%

MSFT
0.73%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

OKTA

Software & Services industry group

0.00%

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

Dividend Payout Ratio (TTM)

Okta (OKTA) 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 19.83%, ranking against industry peers normally.

MSFT

Software & Services industry group

19.83%

MSFT
19.83%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

OKTA

Software & Services industry group

0.00%

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

Dividend Metrics

Dividend metrics for Microsoft (MSFT) and Okta (OKTA)
MetricMSFTOKTA
Dividend Yield (TTM)0.73%0.00%
Dividend Payout Ratio (TTM)19.83%0.00%

Valuation

P/E Ratio (TTM)

Microsoft (MSFT) at 27.71 is near its industry’s usual P/E ratio, while Okta (OKTA) at 106.06 sits in the richer quartile — OKTA needs stronger growth or earnings quality to justify the premium.

MSFT

Software & Services industry group

27.71

Max
107.17
Q3
61.33
Median
34.31
MSFT
27.71
Q1
16.59
Min
0.39

OKTA

Software & Services industry group

106.06

Max
107.17
OKTA
106.06
Q3
61.33
Median
34.31
Q1
16.59
Min
0.39
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Microsoft (MSFT) vs. Okta (OKTA): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

Okta (OKTA) at 8.63 is priced about in line with its industry on P/S ratio, while Microsoft (MSFT) at 11.09 sits in the pricier quartile — MSFT costs more per dollar of sales.

MSFT

Software & Services industry group

11.09

Max
21.27
MSFT
11.09
Q3
10.17
Median
4.61
Q1
2.41
Min
0.02

OKTA

Software & Services industry group

8.63

Max
21.27
Q3
10.17
OKTA
8.63
Median
4.61
Q1
2.41
Min
0.02
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Microsoft (MSFT) vs. Okta (OKTA): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both Microsoft (MSFT) at 8.32 and Okta (OKTA) at 3.75 are valued close to their industries’ norm against book — neither stands out from peers.

MSFT

Software & Services industry group

8.32

Max
21.34
Q3
9.85
MSFT
8.32
Median
4.58
Q1
2.15
Min
-8.85

OKTA

Software & Services industry group

3.75

Max
21.34
Q3
9.85
Median
4.58
OKTA
3.75
Q1
2.15
Min
-8.85
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Microsoft (MSFT) vs. Okta (OKTA): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Microsoft (MSFT) and Okta (OKTA)
MetricMSFTOKTA
P/E Ratio (TTM)27.71106.06
P/S Ratio (TTM)11.098.63
P/B Ratio (MRQ)8.323.75
Free Cash Flow Yield (TTM)0.45%3.82%