MSFT vs. SAP: Microsoft vs. SAP Stock Comparison

July 2, 2026

How do Microsoft (MSFT) and SAP (SAP) 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 SAP (SAP) both belong to the Software industry, though MSFT is classified under Systems Software while SAP falls under Application Software.

Microsoft (MSFT) trades as ordinary local shares, while SAP (SAP) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile comparison for Microsoft (MSFT) and SAP (SAP)
Profile Item	MSFT	SAP
Name	Microsoft Corp.	SAP SE Sponsored ADR
Country/Region	United States	Germany
GICS Sector	Information Technology	Information Technology
GICS Industry Group	Software & Services	Software & Services
GICS Industry	Software	Software
GICS Sub-Industry	Systems Software	Application Software
Market Capitalization	2,770.95 billion USD	181.69 billion USD
Currency	USD	USD
Exchange	Nasdaq	NYSE
Listing Date	March 13, 1986	September 18, 1995
Security Type	Common Stock	ADR

Price Performance

Cumulative Growth

MSFT

SAP

Microsoft (MSFT) vs. SAP (SAP): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

Loading price history…

Trailing total returns for Microsoft (MSFT) and SAP (SAP). Returns over one year are annualized.

Performance Metrics

Price performance metrics for Microsoft (MSFT) and SAP (SAP)
Metric	MSFT	SAP
Total Return (1Y)	-24.41%	-48.44%

Risk Profile

Drawdown History

MSFT

SAP

Microsoft (MSFT) vs. SAP (SAP): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk Metrics

Risk profile metrics for Microsoft (MSFT) and SAP (SAP)
Metric	MSFT	SAP
Volatility (1Y, Annualized)	26.96%	35.01%
Beta (5Y)	1.13	1.15
Avg. Volume (3M)	39.43M	3.38M

Risk-Adjusted Performance

Risk-Return Positioning

MSFT and SAP 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.

Profitability

ROE (TTM)

Microsoft (MSFT) at 34.01% sits in the top ROE quartile, while SAP (SAP) at 16.35% is closer to the peer norm — stronger capital efficiency for MSFT.

MSFT

Software & Services industry group

34.01%

Max: 53.38%
MSFT: 34.01%
Q3: 16.53%
Median: 5.38%
Q1: -13.43%
Min: -55.27%

SAP

Software & Services industry group

16.35%

Max: 53.38%
Q3: 16.53%
SAP: 16.35%
Median: 5.38%
Q1: -13.43%
Min: -55.27%

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

Net Margin (TTM)

For every dollar of sales, both Microsoft (MSFT) at 39.34% and SAP (SAP) at 19.58% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

MSFT

Software & Services industry group

39.34%

Max: 44.20%
MSFT: 39.34%
Q3: 14.93%
Median: 3.32%
Q1: -5.99%
Min: -34.99%

SAP

Software & Services industry group

19.58%

Max: 44.20%
SAP: 19.58%
Q3: 14.93%
Median: 3.32%
Q1: -5.99%
Min: -34.99%

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

Operating Margin (TTM)

Both Microsoft (MSFT) at 46.33% and SAP (SAP) at 30.03% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

MSFT

Software & Services industry group

46.33%

Max: 60.45%
MSFT: 46.33%
Q3: 16.49%
Median: 4.46%
Q1: -12.92%
Min: -53.94%

SAP

Software & Services industry group

30.03%

Max: 60.45%
SAP: 30.03%
Q3: 16.49%
Median: 4.46%
Q1: -12.92%
Min: -53.94%

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

Profitability Metrics

Profitability metrics for Microsoft (MSFT) and SAP (SAP)
Metric	MSFT	SAP
ROE (TTM)	34.01%	16.35%
ROA (TTM)	14.81%	9.08%
Net Margin (TTM)	39.34%	19.58%
Operating Margin (TTM)	46.33%	30.03%
Gross Margin (TTM)	68.31%	73.72%

Growth

Revenue Growth

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

Revenue Growth Metrics

Revenue growth metrics for Microsoft (MSFT) and SAP (SAP)
Metric	MSFT	SAP
Revenue Growth (YoY)	14.93%	7.68%
Revenue Growth (3Y CAGR)	12.42%	7.63%

EPS Growth

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

EPS Growth Metrics

EPS growth metrics for Microsoft (MSFT) and SAP (SAP)
Metric	MSFT	SAP
EPS Growth (YoY)	15.59%	130.19%
EPS Growth (3Y CAGR)	12.23%	46.25%

Financial Strength

Current Ratio (MRQ)

Both Microsoft (MSFT) at 1.28 and SAP (SAP) at 1.07 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

MSFT

Software & Services industry group

1.28

Max: 5.55
Q3: 2.88
Median: 1.72
MSFT: 1.28
Q1: 1.07
Min: 0.03

SAP

Software & Services industry group

1.07

Max: 5.55
Q3: 2.88
Median: 1.72
SAP: 1.07
Q1: 1.07
Min: 0.03

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

Debt / Equity (MRQ)

Both Microsoft (MSFT) at 0.30 and SAP (SAP) at 0.17 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

MSFT

Software & Services industry group

0.30

Max: 2.31
Q3: 1.06
Median: 0.32
MSFT: 0.30
Q1: 0.06
Min: 0.00

SAP

Software & Services industry group

0.17

Max: 2.31
Q3: 1.06
Median: 0.32
SAP: 0.17
Q1: 0.06
Min: 0.00

Microsoft (MSFT) vs. SAP (SAP): 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 SAP (SAP)
Metric	MSFT	SAP
Current Ratio (MRQ)	1.28	1.07
Debt / Equity (MRQ)	0.30	0.17
Net Debt / EBITDA	0.26	-0.19

Dividends

Dividend Yield (TTM)

Both Microsoft (MSFT) at 0.97% and SAP (SAP) at 1.61% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

MSFT

Software & Services industry group

0.97%

MSFT: 0.97%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

SAP

Software & Services industry group

1.61%

SAP: 1.61%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

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

Dividend Payout Ratio (TTM)

Both Microsoft (MSFT) at 20.73% and SAP (SAP) at 37.15% 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

20.73%

MSFT: 20.73%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

SAP

Software & Services industry group

37.15%

SAP: 37.15%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

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

Dividend Metrics

Dividend metrics for Microsoft (MSFT) and SAP (SAP)
Metric	MSFT	SAP
Dividend Yield (TTM)	0.97%	1.61%
Dividend Payout Ratio (TTM)	20.73%	37.15%

Valuation

P/E Ratio (TTM)

Both Microsoft (MSFT) at 22.19 and SAP (SAP) at 21.71 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

22.19

Max: 126.50
Q3: 60.82
Median: 30.49
MSFT: 22.19
Q1: 16.22
Min: 0.41

SAP

Software & Services industry group

21.71

Max: 126.50
Q3: 60.82
Median: 30.49
SAP: 21.71
Q1: 16.22
Min: 0.41

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

P/S Ratio (TTM)

On P/S ratio, both Microsoft (MSFT) at 8.71 and SAP (SAP) at 4.87 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

MSFT

Software & Services industry group

8.71

Max: 18.72
Q3: 8.93
MSFT: 8.71
Median: 4.21
Q1: 2.14
Min: 0.02

SAP

Software & Services industry group

4.87

Max: 18.72
Q3: 8.93
SAP: 4.87
Median: 4.21
Q1: 2.14
Min: 0.02

Microsoft (MSFT) vs. SAP (SAP): 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 6.69 and SAP (SAP) at 3.45 are valued close to their industries’ norm against book — neither stands out from peers.

MSFT

Software & Services industry group

6.69

Max: 18.46
Q3: 8.62
MSFT: 6.69
Median: 4.00
Q1: 1.94
Min: -7.57

SAP

Software & Services industry group

3.45

Max: 18.46
Q3: 8.62
Median: 4.00
SAP: 3.45
Q1: 1.94
Min: -7.57

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

Valuation Metrics

Valuation metrics for Microsoft (MSFT) and SAP (SAP)
Metric	MSFT	SAP
P/E Ratio (TTM)	22.19	21.71
P/S Ratio (TTM)	8.71	4.87
P/B Ratio (MRQ)	6.69	3.45
Free Cash Flow Yield (TTM)	1.34%	4.48%