MSFT vs. PANW: Microsoft vs. Palo Alto Networks Stock Comparison
How do Microsoft (MSFT) and Palo Alto Networks (PANW) 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 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.
| Profile Item | MSFT | PANW |
|---|---|---|
| Name | Microsoft Corporation | 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 | 3,678.62 billion USD | 313.18 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | March 13, 1986 | July 20, 2012 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | MSFT | PANW |
|---|---|---|
| Total Return (1Y) | -4.43% | 121.42% |
| Total Return (3Y, Annualized) | 16.10% | 51.89% |
| Total Return (5Y, Annualized) | 12.00% | 43.87% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | MSFT | PANW |
|---|---|---|
| Volatility (1Y, Annualized) | 32.14% | 41.44% |
| Beta (5Y) | 1.11 | 0.92 |
| Max Drawdown (5Y) | -37.15% | -36.01% |
| Avg. Volume (3M) | 40.35M | 7.69M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | MSFT | PANW |
|---|---|---|
| Sharpe Ratio (1Y) | -0.26 | 2.83 |
| Sortino Ratio (1Y) | -0.40 | 4.50 |
Profitability
ROE (TTM)
Microsoft (MSFT) at 34.04% sits in the top ROE quartile, while Palo Alto Networks (PANW) at 4.83% 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%
PANW
Software & Services industry group
4.83%
- Max
- 62.27%
- Q3
- 16.91%
- Median
- 5.27%
- PANW
- 4.83%
- Q1
- -13.73%
- Min
- -54.87%
Net Margin (TTM)
Microsoft (MSFT) at 40.31% 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
40.31%
- Max
- 41.99%
- MSFT
- 40.31%
- Q3
- 15.18%
- Median
- 3.79%
- Q1
- -5.84%
- Min
- -30.39%
PANW
Software & Services industry group
7.95%
- Max
- 41.99%
- Q3
- 15.18%
- PANW
- 7.95%
- Median
- 3.79%
- Q1
- -5.84%
- Min
- -30.39%
Operating Margin (TTM)
Palo Alto Networks (PANW) reports a negative operating margin of -2.47%, usually indicating that operating costs exceeded revenue at the operating-income line. Meanwhile Microsoft (MSFT) reports 45.11%, ranking against industry peers normally.
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%
PANW
Software & Services industry group
-2.47%
- Max
- 47.12%
- Q3
- 15.23%
- Median
- 4.59%
- PANW
- -2.47%
- Q1
- -6.33%
- Min
- -32.77%
Profitability Metrics
| Metric | MSFT | PANW |
|---|---|---|
| ROE (TTM) | 34.04% | 4.83% |
| ROA (TTM) | 14.09% | 1.77% |
| Net Margin (TTM) | 40.31% | 7.95% |
| Operating Margin (TTM) | 45.11% | -2.47% |
| Gross Margin (TTM) | 67.94% | 71.96% |
Growth
Revenue Growth
Both Microsoft (MSFT) at 17.79% and Palo Alto Networks (PANW) at 14.87% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Microsoft (MSFT) at 31.60% is around its peer norm for EPS growth, while Palo Alto Networks (PANW) at -56.04% drops into the bottom quartile, signaling weaker earnings momentum.
Growth Metrics
| Metric | MSFT | PANW |
|---|---|---|
| Revenue Growth (YoY) | 17.79% | 14.87% |
| Revenue Growth (3Y CAGR) | 16.12% | 18.79% |
| EPS Growth (YoY) | 31.60% | -56.04% |
| EPS Growth (3Y CAGR) | 22.86% | -- |
Financial Strength
Current Ratio (MRQ)
Microsoft (MSFT) at 1.23 keeps current ratio within its industry’s typical 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
1.23
- Max
- 5.39
- Q3
- 2.79
- Median
- 1.63
- MSFT
- 1.23
- Q1
- 1.03
- Min
- 0.03
PANW
Software & Services industry group
0.86
- Max
- 5.39
- Q3
- 2.79
- Median
- 1.63
- Q1
- 1.03
- PANW
- 0.86
- Min
- 0.03
Debt / Equity (MRQ)
Both Microsoft (MSFT) at 0.29 and Palo Alto Networks (PANW) at 0.08 fund their balance sheets with roughly industry-typical debt-to-equity mixes.
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
PANW
Software & Services industry group
0.08
- Max
- 2.42
- Q3
- 1.07
- Median
- 0.33
- PANW
- 0.08
- Q1
- 0.06
- Min
- 0.00
Financial Strength Metrics
| Metric | MSFT | PANW |
|---|---|---|
| Current Ratio (MRQ) | 1.23 | 0.86 |
| Debt / Equity (MRQ) | 0.29 | 0.08 |
| Net Debt / EBITDA | 0.27 | -0.66 |
Dividends
Dividend Yield (TTM)
Palo Alto Networks (PANW) 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%
PANW
Software & Services industry group
0.00%
- PANW
- 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 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%
PANW
Software & Services industry group
0.00%
- PANW
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | MSFT | PANW |
|---|---|---|
| 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 Palo Alto Networks (PANW) at 334.15 sits above its peer range — an unusually expensive price for PANW’s trailing earnings.
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
PANW
Software & Services industry group
334.15
- PANW
- 334.15
- Max
- 107.17
- Q3
- 61.33
- Median
- 34.31
- Q1
- 16.59
- Min
- 0.39
P/S Ratio (TTM)
Both look expensive on sales: Microsoft (MSFT) at 11.09 sits in the upper P/S ratio quartile, and Palo Alto Networks (PANW) at 29.53 prices even higher, above its industry range.
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
PANW
Software & Services industry group
29.53
- PANW
- 29.53
- Max
- 21.27
- Q3
- 10.17
- Median
- 4.61
- Q1
- 2.41
- Min
- 0.02
P/B Ratio (MRQ)
Microsoft (MSFT) at 8.32 is valued about in line with its industry on P/B ratio, while Palo Alto Networks (PANW) at 11.29 carries an above-peer premium to book — PANW is pricier on assets.
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
PANW
Software & Services industry group
11.29
- Max
- 21.34
- PANW
- 11.29
- Q3
- 9.85
- Median
- 4.58
- Q1
- 2.15
- Min
- -8.85
Valuation Metrics
| Metric | MSFT | PANW |
|---|---|---|
| P/E Ratio (TTM) | 27.71 | 334.15 |
| P/S Ratio (TTM) | 11.09 | 29.53 |
| P/B Ratio (MRQ) | 8.32 | 11.29 |
| Free Cash Flow Yield (TTM) | 0.45% | 1.14% |