Microsoft (MSFT) vs. Palo Alto Networks (PANW)

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.

Historical Performance

Historical Performance at a Glance

Profitability

Microsoft (MSFT) at 33.13% ranks in the top quartile for Return on Equity (TTM), ahead of Palo Alto Networks (PANW) at 15.49%, which sits closer to the industry mid-range.

Microsoft (MSFT) at 39.34% ranks in the top quartile for Net Profit Margin (TTM), ahead of Palo Alto Networks (PANW) at 12.96%, which sits closer to the industry mid-range.

Microsoft (MSFT) at 46.75% ranks in the top quartile for Operating Profit Margin (TTM), ahead of Palo Alto Networks (PANW) at 14.37%, which sits closer to the industry mid-range.

Profitability at a Glance

Financial Strength

Microsoft (MSFT) at 1.28 keeps Current Ratio (MRQ) within its industry mid-range, while Palo Alto Networks (PANW) at 1.04 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for PANW.

Both Microsoft (MSFT) at 0.25 and Palo Alto Networks (PANW) at 0.00 post Debt-to-Equity Ratio (MRQ) near their industry mid-ranges, so neither company stands out strongly from peers on leverage.

Palo Alto Networks (PANW) reports a problematic Interest Coverage Ratio (TTM) of -19.72; operating income or EBIT does not fully cover interest expense, so the ratio points to interest-payment strain. Meanwhile Microsoft (MSFT) reports 891.80, ranking against industry peers normally.

Financial Strength at a Glance

Growth

Revenue Growth

Revenue Growth at a Glance

EPS Growth

EPS Growth at a Glance

Dividend

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 0.82%, ranking against industry peers normally.

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 20.65%, ranking against industry peers normally.

Dividend at a Glance

Valuation

Microsoft (MSFT) at 25.21 hovers around the typical industry Price-to-Earnings Ratio (TTM), while Palo Alto Networks (PANW) at 155.37 sits above its industry benchmark range — an elevated trailing earnings multiple for PANW relative to peers.

Microsoft (MSFT) at 9.92 sits in the higher-multiple quartile for Price-to-Sales Ratio (TTM), but Palo Alto Networks (PANW) at 20.13 is higher still, above its industry benchmark range — both carry elevated trailing revenue multiples relative to peers, with PANW higher.

Microsoft (MSFT) at 6.63 carries typical industry Price-to-Book Ratio (MRQ), while Palo Alto Networks (PANW) at 13.02 sits in the higher-multiple quartile — PANW carries a higher book-value multiple relative to peers.

Valuation at a Glance