MSFT vs. TTD: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at MSFT and TTD, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | MSFT | TTD |
|---|---|---|
| Company Name | Microsoft Corporation | The Trade Desk, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Communication Services |
| GICS Industry | Software | Media |
| Market Capitalization | 3,776.90 billion USD | 20.12 billion USD |
| Exchange | NasdaqGS | NasdaqGM |
| Listing Date | March 13, 1986 | September 21, 2016 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of MSFT and TTD 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.
Historical Performance at a Glance
| Symbol | MSFT | TTD |
|---|---|---|
| 5-Day Price Return | -0.23% | -3.07% |
| 13-Week Price Return | -1.86% | -19.55% |
| 26-Week Price Return | 12.04% | -46.34% |
| 52-Week Price Return | 18.88% | -67.05% |
| Month-to-Date Return | -1.99% | -16.61% |
| Year-to-Date Return | 20.40% | -64.32% |
| 10-Day Avg. Volume | 23.89M | 15.43M |
| 3-Month Avg. Volume | 20.87M | 16.43M |
| 3-Month Volatility | 16.65% | 46.01% |
| Beta | 1.07 | 1.14 |
Profitability
Return on Equity (TTM)
MSFT
31.53%
Software Industry
- Max
- 65.88%
- Q3
- 22.54%
- Median
- 10.46%
- Q1
- -6.54%
- Min
- -41.05%
In the upper quartile for the Software industry, MSFT’s Return on Equity of 31.53% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
TTD
16.00%
Media Industry
- Max
- 33.19%
- Q3
- 16.27%
- Median
- 10.95%
- Q1
- 4.58%
- Min
- -3.13%
TTD’s Return on Equity of 16.00% is on par with the norm for the Media industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
MSFT
35.71%
Software Industry
- Max
- 53.50%
- Q3
- 20.30%
- Median
- 9.60%
- Q1
- -4.98%
- Min
- -41.00%
A Net Profit Margin of 35.71% places MSFT in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.
TTD
15.72%
Media Industry
- Max
- 20.69%
- Q3
- 12.32%
- Median
- 6.50%
- Q1
- 2.54%
- Min
- -4.90%
A Net Profit Margin of 15.72% places TTD in the upper quartile for the Media industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
MSFT
45.94%
Software Industry
- Max
- 61.99%
- Q3
- 23.67%
- Median
- 10.93%
- Q1
- -3.57%
- Min
- -40.19%
An Operating Profit Margin of 45.94% 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.
TTD
18.91%
Media Industry
- Max
- 24.30%
- Q3
- 13.69%
- Median
- 9.11%
- Q1
- 4.72%
- Min
- -6.28%
An Operating Profit Margin of 18.91% places TTD in the upper quartile for the Media industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | MSFT | TTD |
|---|---|---|
| Return on Equity (TTM) | 31.53% | 16.00% |
| Return on Assets (TTM) | 17.84% | 7.40% |
| Net Profit Margin (TTM) | 35.71% | 15.72% |
| Operating Profit Margin (TTM) | 45.94% | 18.91% |
| Gross Profit Margin (TTM) | 68.76% | 78.81% |
Financial Strength
Current Ratio (MRQ)
MSFT
1.40
Software Industry
- Max
- 4.01
- Q3
- 2.27
- Median
- 1.50
- Q1
- 1.03
- Min
- 0.25
MSFT’s Current Ratio of 1.40 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.
TTD
1.71
Media Industry
- Max
- 3.59
- Q3
- 2.01
- Median
- 1.08
- Q1
- 0.82
- Min
- 0.24
TTD’s Current Ratio of 1.71 aligns with the median group of the Media industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
MSFT
0.27
Software Industry
- Max
- 2.04
- Q3
- 0.86
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
MSFT’s Debt-to-Equity Ratio of 0.27 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.
TTD
0.00
Media Industry
- Max
- 2.13
- Q3
- 1.08
- Median
- 0.55
- Q1
- 0.22
- Min
- 0.00
Falling into the lower quartile for the Media industry, TTD’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio (TTM)
MSFT
891.80
Software Industry
- Max
- 89.65
- Q3
- 33.82
- Median
- 1.59
- Q1
- -10.48
- Min
- -71.23
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.
TTD
44.57
Media Industry
- Max
- 44.57
- Q3
- 24.75
- Median
- 4.58
- Q1
- 2.20
- Min
- -10.82
TTD’s Interest Coverage Ratio of 44.57 is in the upper quartile for the Media industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | MSFT | TTD |
|---|---|---|
| Current Ratio (MRQ) | 1.40 | 1.71 |
| Quick Ratio (MRQ) | 1.39 | 1.64 |
| Debt-to-Equity Ratio (MRQ) | 0.27 | 0.00 |
| Interest Coverage Ratio (TTM) | 891.80 | 44.57 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
MSFT
0.65%
Software Industry
- Max
- 0.34%
- Q3
- 0.17%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MSFT’s Dividend Yield of 0.65% 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.
TTD
0.00%
Media Industry
- Max
- 8.17%
- Q3
- 3.91%
- Median
- 1.30%
- Q1
- 0.00%
- Min
- 0.00%
TTD 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.
Dividend Payout Ratio (TTM)
MSFT
23.52%
Software Industry
- Max
- 12.76%
- Q3
- 6.56%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
At 23.52%, 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.
TTD
0.00%
Media Industry
- Max
- 165.03%
- Q3
- 102.15%
- Median
- 45.64%
- Q1
- 13.96%
- Min
- 0.00%
TTD 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.
Dividend at a Glance
| Symbol | MSFT | TTD |
|---|---|---|
| Dividend Yield (TTM) | 0.65% | 0.00% |
| Dividend Payout Ratio (TTM) | 23.52% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
MSFT
36.14
Software Industry
- Max
- 142.78
- Q3
- 72.24
- Median
- 36.21
- Q1
- 24.24
- Min
- 4.55
MSFT’s P/E Ratio of 36.14 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.
TTD
45.16
Media Industry
- Max
- 49.10
- Q3
- 32.11
- Median
- 14.41
- Q1
- 12.15
- Min
- 4.42
A P/E Ratio of 45.16 places TTD in the upper quartile for the Media industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
MSFT
12.91
Software Industry
- Max
- 20.79
- Q3
- 12.71
- Median
- 6.75
- Q1
- 4.56
- Min
- 0.87
MSFT’s P/S Ratio of 12.91 is in the upper echelon for the Software industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
TTD
7.10
Media Industry
- Max
- 3.94
- Q3
- 2.46
- Median
- 1.16
- Q1
- 0.86
- Min
- 0.20
With a P/S Ratio of 7.10, TTD trades at a valuation that eclipses even the highest in the Media industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio (MRQ)
MSFT
10.60
Software Industry
- Max
- 30.49
- Q3
- 14.84
- Median
- 8.09
- Q1
- 4.32
- Min
- 0.38
MSFT’s P/B Ratio of 10.60 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.
TTD
9.21
Media Industry
- Max
- 4.74
- Q3
- 2.57
- Median
- 1.75
- Q1
- 1.06
- Min
- 0.56
At 9.21, TTD’s P/B Ratio is at an extreme premium to the Media industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | MSFT | TTD |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 36.14 | 45.16 |
| Price-to-Sales Ratio (TTM) | 12.91 | 7.10 |
| Price-to-Book Ratio (MRQ) | 10.60 | 9.21 |
| Price-to-Free Cash Flow Ratio (TTM) | 48.60 | 29.19 |