MSFT vs. ORCL: Microsoft vs. Oracle Stock Comparison

September 27, 2026

How do Microsoft (MSFT) and Oracle (ORCL) 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 Oracle (ORCL) are both classified in the Systems Software sub-industry within the broader Software industry, placing them in the closest GICS peer bucket.

Company profile comparison for Microsoft (MSFT) and Oracle (ORCL)
Profile Item	MSFT	ORCL
Name	Microsoft Corporation Common Stock	Oracle Corporation
Country/Region	United States	United States
GICS Sector	Information Technology	Information Technology
GICS Industry Group	Software & Services	Software & Services
GICS Industry	Software	Software
GICS Sub-Industry	Systems Software	Systems Software
Market Capitalization	3,832.84 billion USD	414.55 billion USD
Currency	USD	USD
Exchange	Nasdaq	NYSE
Listing Date	March 13, 1986	March 12, 1986
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

MSFT

ORCL

GSPC

Microsoft (MSFT) vs. Oracle (ORCL), 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 Oracle (ORCL). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Microsoft (MSFT) and Oracle (ORCL)
Metric	MSFT	ORCL
Total Return (1Y)	2.64%	-52.40%
Total Return (3Y, Annualized)	18.49%	9.46%
Total Return (5Y, Annualized)	12.43%	10.27%

Risk Profile

Drawdown History

MSFT

ORCL

GSPC

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

Risk Metrics

Risk profile metrics for Microsoft (MSFT) and Oracle (ORCL)
Metric	MSFT	ORCL
Volatility (1Y, Annualized)	32.74%	56.38%
Beta (5Y)	1.10	1.77
Max Drawdown (5Y)	-37.15%	-64.58%
Avg. Volume (3M)	32.93M	33.20M

Risk-Adjusted Performance

Risk-Return Positioning

MSFT and ORCL 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 Oracle (ORCL)
Metric	MSFT	ORCL
Sharpe Ratio (1Y)	-0.06	-1.01
Sortino Ratio (1Y)	-0.09	-1.43

Profitability

ROE (TTM)

Both Microsoft (MSFT) at 34.04% and Oracle (ORCL) at 41.19% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

MSFT

Software & Services industry group

34.04%

Max: 62.27%
MSFT: 34.04%
Q3: 18.32%
Median: 5.27%
Q1: -13.73%
Min: -59.77%

ORCL

Software & Services industry group

41.19%

Max: 62.27%
ORCL: 41.19%
Q3: 18.32%
Median: 5.27%
Q1: -13.73%
Min: -59.77%

Microsoft (MSFT) vs. Oracle (ORCL): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both Microsoft (MSFT) at 40.31% and Oracle (ORCL) at 26.36% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

MSFT

Software & Services industry group

40.31%

Max: 41.43%
MSFT: 40.31%
Q3: 14.87%
Median: 3.86%
Q1: -5.84%
Min: -35.38%

ORCL

Software & Services industry group

26.36%

Max: 41.43%
ORCL: 26.36%
Q3: 14.87%
Median: 3.86%
Q1: -5.84%
Min: -35.38%

Microsoft (MSFT) vs. Oracle (ORCL): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Both Microsoft (MSFT) at 45.11% and Oracle (ORCL) at 35.63% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

MSFT

Software & Services industry group

45.11%

Max: 47.12%
MSFT: 45.11%
Q3: 15.80%
Median: 4.85%
Q1: -7.21%
Min: -39.13%

ORCL

Software & Services industry group

35.63%

Max: 47.12%
ORCL: 35.63%
Q3: 15.80%
Median: 4.85%
Q1: -7.21%
Min: -39.13%

Microsoft (MSFT) vs. Oracle (ORCL): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Microsoft (MSFT) and Oracle (ORCL)
Metric	MSFT	ORCL
ROE (TTM)	34.04%	41.19%
ROA (TTM)	14.09%	6.36%
Net Margin (TTM)	40.31%	26.36%
Operating Margin (TTM)	45.11%	35.63%
Gross Margin (TTM)	67.94%	63.96%

Growth

Revenue Growth

Both Microsoft (MSFT) at 17.79% and Oracle (ORCL) at 17.35% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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

EPS Growth

Both Microsoft (MSFT) at 31.60% and Oracle (ORCL) at 34.33% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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

Growth Metrics

Growth metrics for Microsoft (MSFT) and Oracle (ORCL)
Metric	MSFT	ORCL
Revenue Growth (YoY)	17.79%	17.35%
Revenue Growth (3Y CAGR)	16.12%	10.48%
EPS Growth (YoY)	31.60%	34.33%
EPS Growth (3Y CAGR)	22.86%	23.84%

Financial Strength

Current Ratio (MRQ)

Both Microsoft (MSFT) at 1.23 and Oracle (ORCL) at 1.17 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: 1.64
MSFT: 1.23
Q1: 1.03
Min: 0.03

ORCL

Software & Services industry group

1.17

Max: 5.39
Q3: 2.79
Median: 1.64
ORCL: 1.17
Q1: 1.03
Min: 0.03

Microsoft (MSFT) vs. Oracle (ORCL): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Microsoft (MSFT) at 0.29 carries an industry-typical debt-to-equity mix, while Oracle (ORCL) at 2.52 uses more debt funding than most peers.

MSFT

Software & Services industry group

0.29

Max: 2.62
Q3: 1.10
Median: 0.35
MSFT: 0.29
Q1: 0.06
Min: 0.00

ORCL

Software & Services industry group

2.52

Max: 2.62
ORCL: 2.52
Q3: 1.10
Median: 0.35
Q1: 0.06
Min: 0.00

Microsoft (MSFT) vs. Oracle (ORCL): 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 Oracle (ORCL)
Metric	MSFT	ORCL
Current Ratio (MRQ)	1.23	1.17
Debt / Equity (MRQ)	0.29	2.52
Net Debt / EBITDA	0.27	3.84

Dividends

Dividend Yield (TTM)

Both Microsoft (MSFT) at 0.73% and Oracle (ORCL) at 1.43% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

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%

ORCL

Software & Services industry group

1.43%

ORCL: 1.43%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Microsoft (MSFT) vs. Oracle (ORCL): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Both Microsoft (MSFT) at 19.83% and Oracle (ORCL) at 31.35% pay out more of their earnings than any of their industry peers — the thinnest cover in their groups, so dividend headroom deserves attention.

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%

ORCL

Software & Services industry group

31.35%

ORCL: 31.35%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Microsoft (MSFT) vs. Oracle (ORCL): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Microsoft (MSFT) and Oracle (ORCL)
Metric	MSFT	ORCL
Dividend Yield (TTM)	0.73%	1.43%
Dividend Payout Ratio (TTM)	19.83%	31.35%

Valuation

P/E Ratio (TTM)

Both Microsoft (MSFT) at 28.79 and Oracle (ORCL) at 21.49 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

MSFT

Software & Services industry group

28.79

Max: 116.88
Q3: 59.20
Median: 30.06
MSFT: 28.79
Q1: 16.37
Min: 0.37

ORCL

Software & Services industry group

21.49

Max: 116.88
Q3: 59.20
Median: 30.06
ORCL: 21.49
Q1: 16.37
Min: 0.37

Microsoft (MSFT) vs. Oracle (ORCL): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

Oracle (ORCL) at 5.78 is priced about in line with its industry on P/S ratio, while Microsoft (MSFT) at 11.55 sits in the pricier quartile — MSFT costs more per dollar of sales.

MSFT

Software & Services industry group

11.55

Max: 18.33
MSFT: 11.55
Q3: 9.30
Median: 4.44
Q1: 2.29
Min: 0.02

ORCL

Software & Services industry group

5.78

Max: 18.33
Q3: 9.30
ORCL: 5.78
Median: 4.44
Q1: 2.29
Min: 0.02

Microsoft (MSFT) vs. Oracle (ORCL): 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 8.67 and Oracle (ORCL) at 6.71 are valued close to their industries’ norm against book — neither stands out from peers.

MSFT

Software & Services industry group

8.67

Max: 18.65
Q3: 8.70
MSFT: 8.67
Median: 4.39
Q1: 2.01
Min: -4.55

ORCL

Software & Services industry group

6.71

Max: 18.65
Q3: 8.70
ORCL: 6.71
Median: 4.39
Q1: 2.01
Min: -4.55

Microsoft (MSFT) vs. Oracle (ORCL): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Microsoft (MSFT) and Oracle (ORCL)
Metric	MSFT	ORCL
P/E Ratio (TTM)	28.79	21.49
P/S Ratio (TTM)	11.55	5.78
P/B Ratio (MRQ)	8.67	6.71
Free Cash Flow Yield (TTM)	0.43%	-11.06%