MSFT vs. PM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at MSFT and PM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | MSFT | PM |
|---|---|---|
| Company Name | Microsoft Corporation | Philip Morris International Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Consumer Staples |
| GICS Industry | Software | Tobacco |
| Market Capitalization | 3,759.10 billion USD | 269.06 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | March 13, 1986 | March 17, 2008 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of MSFT and PM by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | MSFT | PM |
|---|---|---|
| 5-Day Price Return | -3.21% | 4.59% |
| 13-Week Price Return | 10.21% | -0.18% |
| 26-Week Price Return | 23.18% | 15.87% |
| 52-Week Price Return | 19.97% | 45.93% |
| Month-to-Date Return | -5.21% | 5.36% |
| Year-to-Date Return | 19.98% | 43.62% |
| 10-Day Avg. Volume | 20.86M | 4.34M |
| 3-Month Avg. Volume | 20.58M | 5.80M |
| 3-Month Volatility | 15.87% | 25.38% |
| Beta | 1.04 | 0.50 |
Profitability
Return on Equity (TTM)
MSFT
32.44%
Software Industry
- Max
- 59.01%
- Q3
- 21.98%
- Median
- 7.15%
- Q1
- -11.12%
- Min
- -51.24%
In the upper quartile for the Software industry, MSFT’s Return on Equity of 32.44% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
PM
575.44%
Tobacco Industry
- Max
- 49.48%
- Q3
- 49.48%
- Median
- 7.92%
- Q1
- 5.28%
- Min
- 4.04%
PM’s Return on Equity of 575.44% is exceptionally high, placing it well beyond the typical range for the Tobacco industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Net Profit Margin (TTM)
MSFT
36.15%
Software Industry
- Max
- 48.14%
- Q3
- 18.23%
- Median
- 5.60%
- Q1
- -9.22%
- Min
- -49.36%
A Net Profit Margin of 36.15% places MSFT in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.
PM
21.08%
Tobacco Industry
- Max
- 21.36%
- Q3
- 18.49%
- Median
- 11.05%
- Q1
- 6.80%
- Min
- 5.37%
A Net Profit Margin of 21.08% places PM in the upper quartile for the Tobacco industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
MSFT
45.29%
Software Industry
- Max
- 57.34%
- Q3
- 20.60%
- Median
- 7.84%
- Q1
- -8.72%
- Min
- -51.37%
An Operating Profit Margin of 45.29% places MSFT in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
PM
36.28%
Tobacco Industry
- Max
- 14.35%
- Q3
- 12.68%
- Median
- 11.00%
- Q1
- 10.58%
- Min
- 10.58%
PM’s Operating Profit Margin of 36.28% is exceptionally high, placing it well above the typical range for the Tobacco industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | MSFT | PM |
|---|---|---|
| Return on Equity (TTM) | 32.44% | 575.44% |
| Return on Assets (TTM) | 18.20% | 12.56% |
| Net Profit Margin (TTM) | 36.15% | 21.08% |
| Operating Profit Margin (TTM) | 45.29% | 36.28% |
| Gross Profit Margin (TTM) | 68.82% | 66.46% |
Financial Strength
Current Ratio (MRQ)
MSFT
1.35
Software Industry
- Max
- 3.83
- Q3
- 2.31
- Median
- 1.45
- Q1
- 1.03
- Min
- 0.24
MSFT’s Current Ratio of 1.35 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.
PM
0.83
Tobacco Industry
- Max
- 3.20
- Q3
- 1.83
- Median
- 0.83
- Q1
- 0.72
- Min
- 0.57
PM’s Current Ratio of 0.83 aligns with the median group of the Tobacco industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
MSFT
0.26
Software Industry
- Max
- 2.14
- Q3
- 0.90
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
MSFT’s Debt-to-Equity Ratio of 0.26 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
PM
186.08
Tobacco Industry
- Max
- 2.19
- Q3
- 2.19
- Median
- 0.74
- Q1
- 0.26
- Min
- 0.01
With a Debt-to-Equity Ratio of 186.08, PM operates with exceptionally high leverage compared to the Tobacco industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio (TTM)
MSFT
891.80
Software Industry
- Max
- 67.02
- Q3
- 19.86
- Median
- 0.70
- Q1
- -12.50
- Min
- -53.00
With an Interest Coverage Ratio of 891.80, MSFT demonstrates a superior capacity to service its debt, placing it well above the typical range for the Software industry. This stems from either robust earnings or a conservative debt load.
PM
11.67
Tobacco Industry
- Max
- 36.48
- Q3
- 28.54
- Median
- 7.02
- Q1
- 6.32
- Min
- -11.45
PM’s Interest Coverage Ratio of 11.67 is positioned comfortably within the norm for the Tobacco industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | MSFT | PM |
|---|---|---|
| Current Ratio (MRQ) | 1.35 | 0.83 |
| Quick Ratio (MRQ) | 1.35 | 0.83 |
| Debt-to-Equity Ratio (MRQ) | 0.26 | 186.08 |
| Interest Coverage Ratio (TTM) | 891.80 | 11.67 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
MSFT
0.64%
Software Industry
- Max
- 0.08%
- Q3
- 0.03%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MSFT’s Dividend Yield of 0.64% is exceptionally high, placing it well above the typical range for the Software industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
PM
3.10%
Tobacco Industry
- Max
- 6.71%
- Q3
- 6.06%
- Median
- 5.48%
- Q1
- 3.91%
- Min
- 3.27%
PM’s Dividend Yield of 3.10% is below the typical range for the Tobacco industry. This indicates that shareholder returns are likely driven more by potential capital appreciation than by dividend income.
Dividend Payout Ratio (TTM)
MSFT
23.65%
Software Industry
- Max
- 1.32%
- Q3
- 0.53%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
At 23.65%, MSFT’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Software industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.
PM
70.92%
Tobacco Industry
- Max
- 77.64%
- Q3
- 76.55%
- Median
- 50.14%
- Q1
- 47.08%
- Min
- 42.39%
PM’s Dividend Payout Ratio of 70.92% is within the typical range for the Tobacco industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | MSFT | PM |
|---|---|---|
| Dividend Yield (TTM) | 0.64% | 3.10% |
| Dividend Payout Ratio (TTM) | 23.65% | 70.92% |
Valuation
Price-to-Earnings Ratio (TTM)
MSFT
37.23
Software Industry
- Max
- 149.35
- Q3
- 100.21
- Median
- 47.97
- Q1
- 26.77
- Min
- 11.68
MSFT’s P/E Ratio of 37.23 is within the middle range for the Software industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
PM
32.70
Tobacco Industry
- Max
- 42.16
- Q3
- 36.45
- Median
- 20.93
- Q1
- 10.52
- Min
- 9.15
PM’s P/E Ratio of 32.70 is within the middle range for the Tobacco industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
MSFT
13.46
Software Industry
- Max
- 25.24
- Q3
- 13.52
- Median
- 8.15
- Q1
- 4.87
- Min
- 0.98
MSFT’s P/S Ratio of 13.46 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
PM
6.89
Tobacco Industry
- Max
- 10.48
- Q3
- 5.39
- Median
- 3.32
- Q1
- 1.54
- Min
- 0.59
PM’s P/S Ratio of 6.89 is in the upper echelon for the Tobacco industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio (MRQ)
MSFT
10.76
Software Industry
- Max
- 30.95
- Q3
- 14.91
- Median
- 7.75
- Q1
- 3.60
- Min
- 0.38
MSFT’s P/B Ratio of 10.76 is within the conventional range for the Software industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
PM
1,368.86
Tobacco Industry
- Max
- 4.76
- Q3
- 4.76
- Median
- 2.18
- Q1
- 1.70
- Min
- 1.06
At 1,368.86, PM’s P/B Ratio is at an extreme premium to the Tobacco industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | MSFT | PM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 37.23 | 32.70 |
| Price-to-Sales Ratio (TTM) | 13.46 | 6.89 |
| Price-to-Book Ratio (MRQ) | 10.76 | 1,368.86 |
| Price-to-Free Cash Flow Ratio (TTM) | 52.94 | 27.63 |