Microsoft (MSFT) vs. Tesla (TSLA)
This page compares Microsoft (MSFT) with Tesla (TSLA) using performance and risk, profitability, financial strength, growth, dividends, and valuation metrics.
Company Profile
Microsoft (MSFT) is classified in the Information Technology sector (Software & Services), whereas Tesla (TSLA) belongs to Consumer Discretionary (Automobiles & Components) — their GICS classifications point to very different parts of the market.
| Symbol | MSFT | TSLA |
|---|---|---|
| Name | Microsoft Corp. | Tesla, Inc. |
| Country/Region | United States | United States |
| GICS Sector | Information Technology | Consumer Discretionary |
| GICS Industry Group | Software & Services | Automobiles & Components |
| GICS Industry | Software | Automobiles |
| GICS Sub-Industry | Systems Software | Automobile Manufacturers |
| Market Capitalization | 2,996.70 billion USD | 1,489.82 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | March 13, 1986 | June 29, 2010 |
| Security Type | Common Stock | Common Stock |
Valuation
Price-to-Earnings Ratio (TTM)
Microsoft (MSFT) at 24.01 hovers around the typical industry Price-to-Earnings Ratio (TTM), while Tesla (TSLA) at 370.73 sits above its industry benchmark range — an elevated trailing earnings multiple for TSLA relative to peers.
MSFT
Software & Services industry group
24.01
- Max
- 108.25
- Q3
- 55.55
- Median
- 31.70
- Q1
- 15.92
- Min
- 0.36
TSLA
Automobiles & Components industry group
370.73
- Max
- 49.82
- Q3
- 33.97
- Median
- 20.30
- Q1
- 13.66
- Min
- 7.39
Price-to-Sales Ratio (TTM)
Both look expensive on sales: Microsoft (MSFT) at 9.42 sits in the upper Price-to-Sales Ratio (TTM) quartile, and Tesla (TSLA) at 15.22 prices even higher, above its industry range.
MSFT
Software & Services industry group
9.42
- Max
- 18.52
- Q3
- 9.02
- Median
- 4.01
- Q1
- 2.11
- Min
- 0.02
TSLA
Automobiles & Components industry group
15.22
- Max
- 2.94
- Q3
- 1.51
- Median
- 0.58
- Q1
- 0.31
- Min
- 0.00
Price-to-Book Ratio (MRQ)
Microsoft (MSFT) at 7.23 sits near its industry’s typical Price-to-Book Ratio (MRQ), while Tesla (TSLA) at 18.12 prices above its benchmark range — TSLA looks rich relative to book.
MSFT
Software & Services industry group
7.23
- Max
- 17.39
- Q3
- 8.16
- Median
- 4.00
- Q1
- 1.95
- Min
- -6.56
TSLA
Automobiles & Components industry group
18.12
- Max
- 4.51
- Q3
- 2.45
- Median
- 1.40
- Q1
- 0.68
- Min
- -1.56
Valuation at a Glance
| Symbol | MSFT | TSLA |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 24.01 | 370.73 |
| Price-to-Sales Ratio (TTM) | 9.42 | 15.22 |
| Price-to-Book Ratio (MRQ) | 7.23 | 18.12 |
| Free Cash Flow Yield | 1.24% | 0.35% |
Profitability
Return on Equity (TTM)
Microsoft (MSFT) at 34.01% ranks in the top quartile for Return on Equity (TTM), ahead of Tesla (TSLA) at 4.90%, which sits closer to the industry mid-range.
MSFT
Software & Services industry group
34.01%
- Max
- 58.77%
- Q3
- 16.77%
- Median
- 5.20%
- Q1
- -16.00%
- Min
- -63.05%
TSLA
Automobiles & Components industry group
4.90%
- Max
- 41.97%
- Q3
- 11.32%
- Median
- 5.13%
- Q1
- -14.13%
- Min
- -49.98%
Net Profit Margin (TTM)
Microsoft (MSFT) at 39.34% retains a top-quartile share of revenue as profit, ahead of Tesla (TSLA) at 3.95%, which keeps about the industry-typical share.
MSFT
Software & Services industry group
39.34%
- Max
- 44.20%
- Q3
- 15.06%
- Median
- 3.32%
- Q1
- -6.49%
- Min
- -34.99%
TSLA
Automobiles & Components industry group
3.95%
- Max
- 15.12%
- Q3
- 4.34%
- Median
- 1.53%
- Q1
- -3.18%
- Min
- -13.87%
Operating Profit Margin (TTM)
Microsoft (MSFT) at 46.33% operates in the top Operating Profit Margin (TTM) quartile, ahead of Tesla (TSLA) at 4.20%, which runs around its industry’s norm.
MSFT
Software & Services industry group
46.33%
- Max
- 60.45%
- Q3
- 16.49%
- Median
- 4.46%
- Q1
- -12.92%
- Min
- -54.21%
TSLA
Automobiles & Components industry group
4.20%
- Max
- 18.83%
- Q3
- 8.71%
- Median
- 3.75%
- Q1
- -1.25%
- Min
- -14.77%
Profitability at a Glance
| Symbol | MSFT | TSLA |
|---|---|---|
| Return on Equity (TTM) | 34.01% | 4.90% |
| Return on Assets (TTM) | 14.81% | 2.23% |
| Net Profit Margin (TTM) | 39.34% | 3.95% |
| Operating Profit Margin (TTM) | 46.33% | 4.20% |
| Gross Profit Margin (TTM) | 68.31% | 19.07% |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | MSFT | TSLA |
|---|---|---|
| 1-Year Revenue Growth | 14.93% | -2.93% |
| 3-Year Revenue CAGR | 12.42% | 5.19% |
EPS Growth
EPS Growth at a Glance
| Symbol | MSFT | TSLA |
|---|---|---|
| 1-Year EPS Growth | 15.59% | -47.06% |
| 3-Year EPS CAGR | 12.23% | -33.18% |
Financial Strength
Current Ratio (MRQ)
Both Microsoft (MSFT) at 1.28 and Tesla (TSLA) at 2.04 carry Current Ratio (MRQ) within their industry mid-ranges, suggesting balanced short-term liquidity relative to peers.
MSFT
Software & Services industry group
1.28
- Max
- 5.55
- Q3
- 2.88
- Median
- 1.73
- Q1
- 1.07
- Min
- 0.03
TSLA
Automobiles & Components industry group
2.04
- Max
- 4.97
- Q3
- 2.69
- Median
- 1.85
- Q1
- 1.14
- Min
- 0.38
Debt-to-Equity Ratio (MRQ)
Tesla (TSLA) at 0.19 maintains Debt-to-Equity Ratio (MRQ) in the lower-leverage quartile of industry peers, ahead of Microsoft (MSFT) at 0.30, which sits around the industry mid-range.
MSFT
Software & Services industry group
0.30
- Max
- 2.31
- Q3
- 1.06
- Median
- 0.32
- Q1
- 0.06
- Min
- 0.00
TSLA
Automobiles & Components industry group
0.19
- Max
- 2.53
- Q3
- 1.19
- Median
- 0.72
- Q1
- 0.26
- Min
- 0.00
Financial Strength at a Glance
| Symbol | MSFT | TSLA |
|---|---|---|
| Current Ratio (MRQ) | 1.28 | 2.04 |
| Debt-to-Equity Ratio (MRQ) | 0.30 | 0.19 |
| Net Debt / EBITDA | 0.26 | -2.60 |
Dividends
Dividend Yield (TTM)
Tesla (TSLA) pays no dividend (yield 0.00%) — often a deliberate choice to reinvest earnings rather than return cash. Meanwhile Microsoft (MSFT) reports a yield of 0.90%, ranking against industry peers normally.
MSFT
Software & Services industry group
0.90%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TSLA
Automobiles & Components industry group
0.00%
- Max
- 5.02%
- Q3
- 2.09%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Tesla (TSLA) 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 20.73%, ranking against industry peers normally.
MSFT
Software & Services industry group
20.73%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TSLA
Automobiles & Components industry group
0.00%
- Max
- 84.24%
- Q3
- 33.71%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividends at a Glance
| Symbol | MSFT | TSLA |
|---|---|---|
| Dividend Yield (TTM) | 0.90% | 0.00% |
| Dividend Payout Ratio (TTM) | 20.73% | 0.00% |
Performance & Risk
Performance & Risk at a Glance
| Symbol | MSFT | TSLA |
|---|---|---|
| 1-Year Return | -11.77% | 38.56% |
| 1-Year Volatility | 25.35% | 44.47% |
| Beta | 1.12 | 1.80 |
| 3-Month Avg. Volume | 34.45M | 59.45M |