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MSFT vs. TSLA: Microsoft vs. Tesla Stock Comparison

How do Microsoft (MSFT) and Tesla (TSLA) 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) 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.

Company profile comparison for Microsoft (MSFT) and Tesla (TSLA)
Profile ItemMSFTTSLA
NameMicrosoft Corp.Tesla, Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyConsumer Discretionary
GICS Industry GroupSoftware & ServicesAutomobiles & Components
GICS IndustrySoftwareAutomobiles
GICS Sub-IndustrySystems SoftwareAutomobile Manufacturers
Market Capitalization2,954.66 billion USD1,423.16 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateMarch 13, 1986June 29, 2010
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

MSFT
TSLA
GSPC
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Microsoft (MSFT) vs. Tesla (TSLA), 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 Tesla (TSLA). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Microsoft (MSFT) and Tesla (TSLA)
MetricMSFTTSLA
Total Return (1Y)-21.40%15.36%
Total Return (3Y, Annualized)5.80%13.38%
Total Return (5Y, Annualized)8.05%11.65%

Risk Profile

Drawdown History

MSFT
TSLA
GSPC
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Microsoft (MSFT) vs. Tesla (TSLA), 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 Tesla (TSLA). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Microsoft (MSFT) and Tesla (TSLA)
MetricMSFTTSLA
Volatility (1Y, Annualized)27.54%44.79%
Beta (5Y)1.121.81
Max Drawdown (5Y)-37.15%-73.63%
Avg. Volume (3M)39.13M48.64M

Risk-Adjusted Performance

Risk-Return Positioning

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MSFT and TSLA are plotted by 1-year volatility (risk) and 1-year return. Each dashed Capital Allocation Line uses that stock's own industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Microsoft (MSFT) and Tesla (TSLA)
MetricMSFTTSLA
Sharpe Ratio (1Y)-0.920.25
Sortino Ratio (1Y)-1.230.37

Profitability

ROE (TTM)

Microsoft (MSFT) at 34.01% sits in the top ROE quartile, while Tesla (TSLA) at 4.90% 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
16.62%
Median
5.48%
Q1
-12.77%
Min
-55.27%

TSLA

Automobiles & Components industry group

4.90%

Max
41.97%
Q3
11.32%
Median
5.13%
TSLA
4.90%
Q1
-14.13%
Min
-49.98%
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Microsoft (MSFT) vs. Tesla (TSLA): A comparison of their ROE against their respective Software & Services and Automobiles & Components industry group benchmarks.

Net 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%
MSFT
39.34%
Q3
15.06%
Median
3.70%
Q1
-5.19%
Min
-34.99%

TSLA

Automobiles & Components industry group

3.95%

Max
15.12%
Q3
4.33%
TSLA
3.95%
Median
1.47%
Q1
-3.14%
Min
-13.87%
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Microsoft (MSFT) vs. Tesla (TSLA): A comparison of their net margin against their respective Software & Services and Automobiles & Components industry group benchmarks.

Operating Margin (TTM)

Microsoft (MSFT) at 46.33% operates in the top operating margin quartile, ahead of Tesla (TSLA) at 4.20%, which runs around its industry’s norm.

MSFT

Software & Services industry group

46.33%

Max
46.97%
MSFT
46.33%
Q3
16.51%
Median
5.70%
Q1
-9.95%
Min
-43.35%

TSLA

Automobiles & Components industry group

4.20%

Max
29.48%
Q3
8.69%
TSLA
4.20%
Median
3.45%
Q1
-5.57%
Min
-19.36%
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Microsoft (MSFT) vs. Tesla (TSLA): A comparison of their operating margin against their respective Software & Services and Automobiles & Components industry group benchmarks.

Profitability Metrics

Profitability metrics for Microsoft (MSFT) and Tesla (TSLA)
MetricMSFTTSLA
ROE (TTM)34.01%4.90%
ROA (TTM)14.81%2.23%
Net Margin (TTM)39.34%3.95%
Operating Margin (TTM)46.33%4.20%
Gross Margin (TTM)68.31%19.07%

Growth

Revenue Growth

Microsoft (MSFT) at 14.93% is around its peer norm for revenue growth, while Tesla (TSLA) at -2.93% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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

EPS Growth

Both Microsoft (MSFT) at 15.59% and Tesla (TSLA) at -47.06% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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

Growth Metrics

Growth metrics for Microsoft (MSFT) and Tesla (TSLA)
MetricMSFTTSLA
Revenue Growth (YoY)14.93%-2.93%
Revenue Growth (3Y CAGR)12.42%5.19%
EPS Growth (YoY)15.59%-47.06%
EPS Growth (3Y 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 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
1.70
MSFT
1.28
Q1
1.06
Min
0.03

TSLA

Automobiles & Components industry group

2.04

Max
4.97
Q3
2.67
TSLA
2.04
Median
1.83
Q1
1.12
Min
0.06
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Microsoft (MSFT) vs. Tesla (TSLA): A comparison of their current ratio against their respective Software & Services and Automobiles & Components industry group benchmarks.

Debt / Equity (MRQ)

Tesla (TSLA) at 0.19 keeps leverage in the lower industry quartile, while Microsoft (MSFT) at 0.30 runs a more typical debt-to-equity mix.

MSFT

Software & Services industry group

0.30

Max
2.62
Q3
1.10
Median
0.31
MSFT
0.30
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
TSLA
0.19
Min
0.00
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Microsoft (MSFT) vs. Tesla (TSLA): A comparison of their debt-to-equity ratio against their respective Software & Services and Automobiles & Components industry group benchmarks.

Financial Strength Metrics

Financial strength metrics for Microsoft (MSFT) and Tesla (TSLA)
MetricMSFTTSLA
Current Ratio (MRQ)1.282.04
Debt / Equity (MRQ)0.300.19
Net Debt / EBITDA0.26-2.60

Dividends

Dividend Yield (TTM)

Tesla (TSLA) 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 0.88%, ranking against industry peers normally.

MSFT

Software & Services industry group

0.88%

MSFT
0.88%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

TSLA

Automobiles & Components industry group

0.00%

Max
4.30%
Q3
1.80%
TSLA
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Microsoft (MSFT) vs. Tesla (TSLA): A comparison of their dividend yield against their respective Software & Services and Automobiles & Components industry group benchmarks.

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%

MSFT
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
82.28%
Q3
33.54%
TSLA
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Microsoft (MSFT) vs. Tesla (TSLA): A comparison of their payout ratio against their respective Software & Services and Automobiles & Components industry group benchmarks.

Dividend Metrics

Dividend metrics for Microsoft (MSFT) and Tesla (TSLA)
MetricMSFTTSLA
Dividend Yield (TTM)0.88%0.00%
Dividend Payout Ratio (TTM)20.73%0.00%

Valuation

P/E Ratio (TTM)

Microsoft (MSFT) at 23.70 is near its industry’s usual P/E ratio, while Tesla (TSLA) at 344.48 sits above its peer range — an unusually expensive price for TSLA’s trailing earnings.

MSFT

Software & Services industry group

23.70

Max
122.10
Q3
63.18
Median
31.83
MSFT
23.70
Q1
16.77
Min
0.43

TSLA

Automobiles & Components industry group

344.48

TSLA
344.48
Max
48.85
Q3
30.60
Median
21.90
Q1
13.74
Min
5.99
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Microsoft (MSFT) vs. Tesla (TSLA): A comparison of their P/E ratio against their respective Software & Services and Automobiles & Components industry group benchmarks.

P/S Ratio (TTM)

Both look expensive on sales: Microsoft (MSFT) at 9.28 sits in the upper P/S ratio quartile, and Tesla (TSLA) at 14.54 prices even higher, above its industry range.

MSFT

Software & Services industry group

9.28

Max
18.71
MSFT
9.28
Q3
8.98
Median
4.08
Q1
2.15
Min
0.02

TSLA

Automobiles & Components industry group

14.54

TSLA
14.54
Max
4.13
Q3
1.94
Median
0.61
Q1
0.30
Min
0.00
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Microsoft (MSFT) vs. Tesla (TSLA): A comparison of their P/S ratio against their respective Software & Services and Automobiles & Components industry group benchmarks.

P/B Ratio (MRQ)

Microsoft (MSFT) at 7.13 sits near its industry’s typical P/B ratio, while Tesla (TSLA) at 16.92 prices above its benchmark range — TSLA looks rich relative to book.

MSFT

Software & Services industry group

7.13

Max
16.97
Q3
8.89
MSFT
7.13
Median
4.00
Q1
1.93
Min
-8.32

TSLA

Automobiles & Components industry group

16.92

TSLA
16.92
Max
4.22
Q3
2.21
Median
1.33
Q1
0.69
Min
-1.46
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Microsoft (MSFT) vs. Tesla (TSLA): A comparison of their P/B ratio against their respective Software & Services and Automobiles & Components industry group benchmarks.

Valuation Metrics

Valuation metrics for Microsoft (MSFT) and Tesla (TSLA)
MetricMSFTTSLA
P/E Ratio (TTM)23.70344.48
P/S Ratio (TTM)9.2814.54
P/B Ratio (MRQ)7.1316.92
Free Cash Flow Yield (TTM)1.25%0.37%