MSFT vs. SHOP: Microsoft vs. Shopify Stock Comparison

October 14, 2026

How do Microsoft (MSFT) and Shopify (SHOP) 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 Shopify (SHOP) both fall under the Software & Services industry group, but MSFT is classified in Software while SHOP is classified in IT Services.

Company profile comparison for Microsoft (MSFT) and Shopify (SHOP)
Profile Item	MSFT	SHOP
Name	Microsoft Corporation Common Stock	Shopify Inc.
Country/Region	United States	Canada
GICS Sector	Information Technology	Information Technology
GICS Industry Group	Software & Services	Software & Services
GICS Industry	Software	IT Services
GICS Sub-Industry	Systems Software	Internet Services & Infrastructure
Market Capitalization	4,018.33 billion USD	232.57 billion USD
Currency	USD	USD
Exchange	Nasdaq	Nasdaq
Listing Date	March 13, 1986	May 20, 2015
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

MSFT

SHOP

GSPC

Microsoft (MSFT) vs. Shopify (SHOP), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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

Calendar-Year Returns

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Calendar-year total returns for Microsoft (MSFT) and Shopify (SHOP). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Microsoft (MSFT) and Shopify (SHOP)
Metric	MSFT	SHOP
Total Return (1Y)	7.24%	16.04%
Total Return (3Y, Annualized)	19.52%	51.23%
Total Return (5Y, Annualized)	13.97%	4.97%

Risk Profile

Drawdown History

MSFT

SHOP

GSPC

Microsoft (MSFT) vs. Shopify (SHOP), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Microsoft (MSFT) and Shopify (SHOP). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Shopify (SHOP) carries a highly aggressive beta of 2.68, indicating much higher sensitivity to broad-market moves, whereas Microsoft (MSFT) is closer to market-like at 1.06 — a noticeable difference in market-sensitivity profile.

Risk profile metrics for Microsoft (MSFT) and Shopify (SHOP)
Metric	MSFT	SHOP
Volatility (1Y, Annualized)	32.78%	58.56%
Beta (5Y)	1.06	2.68
Max Drawdown (5Y)	-37.15%	-84.82%
Avg. Volume (3M)	27.19M	9.43M

Risk-Adjusted Performance

Risk-Return Positioning

MSFT and SHOP 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.

Risk-Adjusted Metrics

Risk-adjusted metrics for Microsoft (MSFT) and Shopify (SHOP)
Metric	MSFT	SHOP
Sharpe Ratio (1Y)	0.09	0.20
Sortino Ratio (1Y)	0.13	0.29

Profitability

ROE (TTM)

Microsoft (MSFT) at 34.04% sits in the top ROE quartile, while Shopify (SHOP) at 15.54% 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: 18.32%
Median: 5.48%
Q1: -13.62%
Min: -59.77%

SHOP

Software & Services industry group

15.54%

Max: 62.27%
Q3: 18.32%
SHOP: 15.54%
Median: 5.48%
Q1: -13.62%
Min: -59.77%

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

Net Margin (TTM)

Microsoft (MSFT) at 40.31% retains a top-quartile share of revenue as profit, ahead of Shopify (SHOP) at 14.53%, which keeps about the industry-typical share.

MSFT

Software & Services industry group

40.31%

Max: 41.43%
MSFT: 40.31%
Q3: 14.96%
Median: 4.26%
Q1: -5.85%
Min: -30.95%

SHOP

Software & Services industry group

14.53%

Max: 41.43%
Q3: 14.96%
SHOP: 14.53%
Median: 4.26%
Q1: -5.85%
Min: -30.95%

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

Operating Margin (TTM)

Both Microsoft (MSFT) at 45.11% and Shopify (SHOP) at 17.56% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

MSFT

Software & Services industry group

45.11%

Max: 47.12%
MSFT: 45.11%
Q3: 15.51%
Median: 4.87%
Q1: -6.45%
Min: -39.13%

SHOP

Software & Services industry group

17.56%

Max: 47.12%
SHOP: 17.56%
Q3: 15.51%
Median: 4.87%
Q1: -6.45%
Min: -39.13%

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

Profitability Metrics

Profitability metrics for Microsoft (MSFT) and Shopify (SHOP)
Metric	MSFT	SHOP
ROE (TTM)	34.04%	15.54%
ROA (TTM)	14.09%	10.19%
Net Margin (TTM)	40.31%	14.53%
Operating Margin (TTM)	45.11%	17.56%
Gross Margin (TTM)	67.94%	47.77%

Growth

Revenue Growth

Shopify (SHOP) at 30.14% sits in the top revenue growth quartile, while Microsoft (MSFT) at 17.79% is closer to the peer norm — faster top-line expansion for SHOP.

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

EPS Growth

Both Microsoft (MSFT) at 31.60% and Shopify (SHOP) at -39.47% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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

Growth Metrics

Growth metrics for Microsoft (MSFT) and Shopify (SHOP)
Metric	MSFT	SHOP
Revenue Growth (YoY)	17.79%	30.14%
Revenue Growth (3Y CAGR)	16.12%	27.31%
EPS Growth (YoY)	31.60%	-39.47%
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 Shopify (SHOP) at 5.35 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

MSFT

Software & Services industry group

1.23

Max: 5.11
Q3: 2.74
Median: 1.63
MSFT: 1.23
Q1: 1.02
Min: 0.03

SHOP

Software & Services industry group

5.35

SHOP: 5.35
Max: 5.11
Q3: 2.74
Median: 1.63
Q1: 1.02
Min: 0.03

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

Debt / Equity (MRQ)

Shopify (SHOP) at 0.01 keeps leverage in the lower industry quartile, while Microsoft (MSFT) at 0.29 runs a more typical debt-to-equity mix.

MSFT

Software & Services industry group

0.29

Max: 2.52
Q3: 1.10
Median: 0.35
MSFT: 0.29
Q1: 0.06
Min: 0.00

SHOP

Software & Services industry group

0.01

Max: 2.52
Q3: 1.10
Median: 0.35
Q1: 0.06
SHOP: 0.01
Min: 0.00

Microsoft (MSFT) vs. Shopify (SHOP): 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 Shopify (SHOP)
Metric	MSFT	SHOP
Current Ratio (MRQ)	1.23	5.35
Debt / Equity (MRQ)	0.29	0.01
Net Debt / EBITDA	0.27	-1.99

Dividends

Dividend Yield (TTM)

Shopify (SHOP) 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 0.68%, ranking against industry peers normally.

MSFT

Software & Services industry group

0.68%

MSFT: 0.68%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

SHOP

Software & Services industry group

0.00%

SHOP: 0.00%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

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

Dividend Payout Ratio (TTM)

Shopify (SHOP) 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%

SHOP

Software & Services industry group

0.00%

SHOP: 0.00%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

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

Dividend Metrics

Dividend metrics for Microsoft (MSFT) and Shopify (SHOP)
Metric	MSFT	SHOP
Dividend Yield (TTM)	0.68%	0.00%
Dividend Payout Ratio (TTM)	19.83%	0.00%

Valuation

P/E Ratio (TTM)

Microsoft (MSFT) at 30.15 is near its industry’s usual P/E ratio, while Shopify (SHOP) at 121.09 sits in the richer quartile — SHOP needs stronger growth or earnings quality to justify the premium.

MSFT

Software & Services industry group

30.15

Max: 121.09
Q3: 60.42
Median: 31.84
MSFT: 30.15
Q1: 17.70
Min: 6.45

SHOP

Software & Services industry group

121.09

SHOP: 121.09
Max: 121.09
Q3: 60.42
Median: 31.84
Q1: 17.70
Min: 6.45

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

P/S Ratio (TTM)

Both Microsoft (MSFT) at 12.11 and Shopify (SHOP) at 17.53 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.

MSFT

Software & Services industry group

12.11

Max: 19.98
MSFT: 12.11
Q3: 9.41
Median: 4.36
Q1: 2.30
Min: 0.02

SHOP

Software & Services industry group

17.53

Max: 19.98
SHOP: 17.53
Q3: 9.41
Median: 4.36
Q1: 2.30
Min: 0.02

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

P/B Ratio (MRQ)

Microsoft (MSFT) at 9.09 is valued about in line with its industry on P/B ratio, while Shopify (SHOP) at 18.22 carries an above-peer premium to book — SHOP is pricier on assets.

MSFT

Software & Services industry group

9.09

Max: 19.30
Q3: 9.10
MSFT: 9.09
Median: 4.43
Q1: 1.98
Min: -3.90

SHOP

Software & Services industry group

18.22

Max: 19.30
SHOP: 18.22
Q3: 9.10
Median: 4.43
Q1: 1.98
Min: -3.90

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

Valuation Metrics

Valuation metrics for Microsoft (MSFT) and Shopify (SHOP)
Metric	MSFT	SHOP
P/E Ratio (TTM)	30.15	121.09
P/S Ratio (TTM)	12.11	17.53
P/B Ratio (MRQ)	9.09	18.22
Free Cash Flow Yield (TTM)	0.41%	0.68%