Microsoft (MSFT) vs. Palo Alto Networks (PANW)
This page compares Microsoft (MSFT) with Palo Alto Networks (PANW) using performance and risk, profitability, financial strength, growth, dividends, and valuation metrics.
Company Profile
Microsoft (MSFT) and Palo Alto Networks (PANW) are both classified in the Systems Software sub-industry within the broader Software industry, placing them in the closest GICS peer bucket.
| Symbol | MSFT | PANW |
|---|---|---|
| Name | Microsoft Corp. | Palo Alto Networks, Inc. |
| 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 | 2,996.70 billion USD | 212.32 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | March 13, 1986 | July 20, 2012 |
| Security Type | Common Stock | Common Stock |
Valuation
Price-to-Earnings Ratio (TTM)
Microsoft (MSFT) at 24.01 hovers around the typical industry Price-to-Earnings Ratio (TTM), while Palo Alto Networks (PANW) at 232.61 sits above its industry benchmark range — an elevated trailing earnings multiple for PANW relative to peers.
MSFT
Software & Services industry group
24.01
- Max
- 108.25
- Q3
- 55.55
- Median
- 31.70
- Q1
- 15.92
- Min
- 0.36
PANW
Software & Services industry group
232.61
- Max
- 108.25
- Q3
- 55.55
- Median
- 31.70
- Q1
- 15.92
- Min
- 0.36
Price-to-Sales Ratio (TTM)
Both look expensive on sales: Microsoft (MSFT) at 9.42 sits in the upper Price-to-Sales Ratio (TTM) quartile, and Palo Alto Networks (PANW) at 20.02 prices even higher, above its industry range.
MSFT
Software & Services industry group
9.42
- Max
- 18.52
- Q3
- 9.02
- Median
- 4.01
- Q1
- 2.11
- Min
- 0.02
PANW
Software & Services industry group
20.02
- Max
- 18.52
- Q3
- 9.02
- Median
- 4.01
- Q1
- 2.11
- Min
- 0.02
Price-to-Book Ratio (MRQ)
On Price-to-Book Ratio (MRQ), both Microsoft (MSFT) at 7.23 and Palo Alto Networks (PANW) at 7.66 are valued close to their industries’ norm against book — neither stands out from peers.
MSFT
Software & Services industry group
7.23
- Max
- 17.39
- Q3
- 8.16
- Median
- 4.00
- Q1
- 1.95
- Min
- -6.56
PANW
Software & Services industry group
7.66
- Max
- 17.39
- Q3
- 8.16
- Median
- 4.00
- Q1
- 1.95
- Min
- -6.56
Valuation at a Glance
| Symbol | MSFT | PANW |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 24.01 | 232.61 |
| Price-to-Sales Ratio (TTM) | 9.42 | 20.02 |
| Price-to-Book Ratio (MRQ) | 7.23 | 7.66 |
| Free Cash Flow Yield | 1.24% | 1.69% |
Profitability
Return on Equity (TTM)
Microsoft (MSFT) at 34.01% ranks in the top quartile for Return on Equity (TTM), ahead of Palo Alto Networks (PANW) at 4.83%, which sits closer to the industry mid-range.
MSFT
Software & Services industry group
34.01%
- Max
- 58.77%
- Q3
- 16.77%
- Median
- 5.20%
- Q1
- -16.00%
- Min
- -63.05%
PANW
Software & Services industry group
4.83%
- Max
- 58.77%
- Q3
- 16.77%
- Median
- 5.20%
- Q1
- -16.00%
- Min
- -63.05%
Net Profit Margin (TTM)
Microsoft (MSFT) at 39.34% retains a top-quartile share of revenue as profit, ahead of Palo Alto Networks (PANW) at 7.95%, which keeps about the industry-typical share.
MSFT
Software & Services industry group
39.34%
- Max
- 44.20%
- Q3
- 15.06%
- Median
- 3.32%
- Q1
- -6.49%
- Min
- -34.99%
PANW
Software & Services industry group
7.95%
- Max
- 44.20%
- Q3
- 15.06%
- Median
- 3.32%
- Q1
- -6.49%
- Min
- -34.99%
Operating Profit Margin (TTM)
Palo Alto Networks (PANW) reports a negative Operating Profit Margin (TTM) of -2.47%, usually indicating that operating costs exceeded revenue at the operating-income line. Meanwhile Microsoft (MSFT) reports 46.33%, ranking against industry peers normally.
MSFT
Software & Services industry group
46.33%
- Max
- 60.45%
- Q3
- 16.49%
- Median
- 4.46%
- Q1
- -12.92%
- Min
- -54.21%
PANW
Software & Services industry group
-2.47%
- Max
- 60.45%
- Q3
- 16.49%
- Median
- 4.46%
- Q1
- -12.92%
- Min
- -54.21%
Profitability at a Glance
| Symbol | MSFT | PANW |
|---|---|---|
| Return on Equity (TTM) | 34.01% | 4.83% |
| Return on Assets (TTM) | 14.81% | 1.77% |
| Net Profit Margin (TTM) | 39.34% | 7.95% |
| Operating Profit Margin (TTM) | 46.33% | -2.47% |
| Gross Profit Margin (TTM) | 68.31% | 71.96% |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | MSFT | PANW |
|---|---|---|
| 1-Year Revenue Growth | 14.93% | 14.87% |
| 3-Year Revenue CAGR | 12.42% | 18.79% |
EPS Growth
EPS Growth at a Glance
| Symbol | MSFT | PANW |
|---|---|---|
| 1-Year EPS Growth | 15.59% | -56.04% |
| 3-Year EPS CAGR | 12.23% | -- |
Financial Strength
Current Ratio (MRQ)
Microsoft (MSFT) at 1.28 keeps Current Ratio (MRQ) within its industry mid-range, while Palo Alto Networks (PANW) at 0.86 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for PANW.
MSFT
Software & Services industry group
1.28
- Max
- 5.55
- Q3
- 2.88
- Median
- 1.73
- Q1
- 1.07
- Min
- 0.03
PANW
Software & Services industry group
0.86
- Max
- 5.55
- Q3
- 2.88
- Median
- 1.73
- Q1
- 1.07
- Min
- 0.03
Debt-to-Equity Ratio (MRQ)
Both Microsoft (MSFT) at 0.30 and Palo Alto Networks (PANW) at 0.08 post Debt-to-Equity Ratio (MRQ) near their industry mid-ranges, so neither company stands out strongly from peers on leverage.
MSFT
Software & Services industry group
0.30
- Max
- 2.31
- Q3
- 1.06
- Median
- 0.32
- Q1
- 0.06
- Min
- 0.00
PANW
Software & Services industry group
0.08
- Max
- 2.31
- Q3
- 1.06
- Median
- 0.32
- Q1
- 0.06
- Min
- 0.00
Financial Strength at a Glance
| Symbol | MSFT | PANW |
|---|---|---|
| Current Ratio (MRQ) | 1.28 | 0.86 |
| Debt-to-Equity Ratio (MRQ) | 0.30 | 0.08 |
| Net Debt / EBITDA | 0.26 | -0.66 |
Dividends
Dividend Yield (TTM)
Palo Alto Networks (PANW) pays no dividend (yield 0.00%) — often a deliberate choice to reinvest earnings rather than return cash. Meanwhile Microsoft (MSFT) reports a yield of 0.90%, ranking against industry peers normally.
MSFT
Software & Services industry group
0.90%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
PANW
Software & Services industry group
0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Palo Alto Networks (PANW) 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 20.73%, ranking against industry peers normally.
MSFT
Software & Services industry group
20.73%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
PANW
Software & Services industry group
0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividends at a Glance
| Symbol | MSFT | PANW |
|---|---|---|
| Dividend Yield (TTM) | 0.90% | 0.00% |
| Dividend Payout Ratio (TTM) | 20.73% | 0.00% |
Performance & Risk
Performance & Risk at a Glance
| Symbol | MSFT | PANW |
|---|---|---|
| 1-Year Return | -11.77% | 33.43% |
| 1-Year Volatility | 25.35% | 38.57% |
| Beta | 1.12 | 0.96 |
| 3-Month Avg. Volume | 34.45M | 8.32M |