MSFT vs. SMCI: A Head-to-Head Stock Comparison

Updated on August 27, 2025

Here’s a clear look at MSFT and SMCI, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

Symbol	MSFT	SMCI
Company Name	Microsoft Corporation	Super Micro Computer, Inc.
Country	United States	United States
GICS Sector	Information Technology	Information Technology
GICS Industry	Software	Technology Hardware, Storage & Peripherals
Market Capitalization	3,748.25 billion USD	26.30 billion USD
Exchange	NasdaqGS	NasdaqGS
Listing Date	March 13, 1986	March 29, 2007
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of MSFT and SMCI 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.

MSFT vs. SMCI: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	MSFT	SMCI
5-Day Price Return	-1.08%	1.92%
13-Week Price Return	10.86%	6.66%
26-Week Price Return	21.58%	-26.85%
52-Week Price Return	21.35%	-27.13%
Month-to-Date Return	-5.48%	-25.27%
Year-to-Date Return	19.63%	44.59%
10-Day Avg. Volume	22.11M	25.05M
3-Month Avg. Volume	20.62M	43.51M
3-Month Volatility	15.65%	68.21%
Beta	1.04	1.59

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.

SMCI

16.92%

Technology Hardware, Storage & Peripherals Industry

Max: 47.24%
Q3: 29.40%
Median: 9.11%
Q1: 6.06%
Min: -0.79%

SMCI’s Return on Equity of 16.92% is on par with the norm for the Technology Hardware, Storage & Peripherals industry, indicating its profitability relative to shareholder equity is typical for the sector.

MSFT vs. SMCI: A comparison of their Return on Equity (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

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.

SMCI

4.77%

Technology Hardware, Storage & Peripherals Industry

Max: 13.86%
Q3: 8.17%
Median: 4.62%
Q1: 3.65%
Min: -0.21%

SMCI’s Net Profit Margin of 4.77% is aligned with the median group of its peers in the Technology Hardware, Storage & Peripherals industry. This indicates its ability to convert revenue into profit is typical for the sector.

MSFT vs. SMCI: A comparison of their Net Profit Margin (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

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.

SMCI

5.56%

Technology Hardware, Storage & Peripherals Industry

Max: 17.80%
Q3: 10.33%
Median: 6.31%
Q1: 4.86%
Min: 2.53%

SMCI’s Operating Profit Margin of 5.56% is around the midpoint for the Technology Hardware, Storage & Peripherals industry, indicating that its efficiency in managing core business operations is typical for the sector.

MSFT vs. SMCI: A comparison of their Operating Profit Margin (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Profitability at a Glance

Symbol	MSFT	SMCI
Return on Equity (TTM)	32.44%	16.92%
Return on Assets (TTM)	18.20%	9.25%
Net Profit Margin (TTM)	36.15%	4.77%
Operating Profit Margin (TTM)	45.29%	5.56%
Gross Profit Margin (TTM)	68.82%	11.06%

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.

SMCI

5.32

Technology Hardware, Storage & Peripherals Industry

Max: 2.47
Q3: 1.98
Median: 1.40
Q1: 1.26
Min: 0.70

SMCI’s Current Ratio of 5.32 is exceptionally high, placing it well outside the typical range for the Technology Hardware, Storage & Peripherals industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

MSFT vs. SMCI: A comparison of their Current Ratio (MRQ) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

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.

SMCI

0.76

Technology Hardware, Storage & Peripherals Industry

Max: 1.47
Q3: 0.93
Median: 0.32
Q1: 0.19
Min: 0.00

SMCI’s Debt-to-Equity Ratio of 0.76 is typical for the Technology Hardware, Storage & Peripherals industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

MSFT vs. SMCI: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

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.

SMCI

21.34

Technology Hardware, Storage & Peripherals Industry

Max: 204.63
Q3: 90.22
Median: 21.70
Q1: 6.79
Min: -23.93

SMCI’s Interest Coverage Ratio of 21.34 is positioned comfortably within the norm for the Technology Hardware, Storage & Peripherals industry, indicating a standard and healthy capacity to cover its interest payments.

MSFT vs. SMCI: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Financial Strength at a Glance

Symbol	MSFT	SMCI
Current Ratio (MRQ)	1.35	5.32
Quick Ratio (MRQ)	1.35	3.22
Debt-to-Equity Ratio (MRQ)	0.26	0.76
Interest Coverage Ratio (TTM)	891.80	21.34

Growth

Revenue Growth

MSFT vs. SMCI: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

MSFT vs. SMCI: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

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.

SMCI

0.00%

Technology Hardware, Storage & Peripherals Industry

Max: 4.50%
Q3: 3.66%
Median: 1.90%
Q1: 0.00%
Min: 0.00%

SMCI currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

MSFT vs. SMCI: A comparison of their Dividend Yield (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

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.

SMCI

0.00%

Technology Hardware, Storage & Peripherals Industry

Max: 142.87%
Q3: 66.07%
Median: 42.79%
Q1: 0.00%
Min: 0.00%

SMCI has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

MSFT vs. SMCI: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Dividend at a Glance

Symbol	MSFT	SMCI
Dividend Yield (TTM)	0.64%	0.00%
Dividend Payout Ratio (TTM)	23.65%	0.00%

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.

SMCI

24.29

Technology Hardware, Storage & Peripherals Industry

Max: 43.16
Q3: 27.56
Median: 17.85
Q1: 12.48
Min: 6.21

SMCI’s P/E Ratio of 24.29 is within the middle range for the Technology Hardware, Storage & Peripherals industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

MSFT vs. SMCI: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

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.

SMCI

1.16

Technology Hardware, Storage & Peripherals Industry

Max: 4.27
Q3: 1.99
Median: 0.93
Q1: 0.45
Min: 0.04

SMCI’s P/S Ratio of 1.16 aligns with the market consensus for the Technology Hardware, Storage & Peripherals industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

MSFT vs. SMCI: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

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.

SMCI

4.64

Technology Hardware, Storage & Peripherals Industry

Max: 12.51
Q3: 6.11
Median: 1.73
Q1: 1.01
Min: 0.31

SMCI’s P/B Ratio of 4.64 is within the conventional range for the Technology Hardware, Storage & Peripherals 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.

MSFT vs. SMCI: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Valuation at a Glance

Symbol	MSFT	SMCI
Price-to-Earnings Ratio (TTM)	37.23	24.29
Price-to-Sales Ratio (TTM)	13.46	1.16
Price-to-Book Ratio (MRQ)	10.76	4.64
Price-to-Free Cash Flow Ratio (TTM)	52.94	14.15