MSFT vs. TWLO: Microsoft vs. Twilio Stock Comparison
How do Microsoft (MSFT) and Twilio (TWLO) 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 Twilio (TWLO) both fall under the Software & Services industry group, but MSFT is classified in Software while TWLO is classified in IT Services.
| Profile Item | MSFT | TWLO |
|---|---|---|
| Name | Microsoft Corporation Common Stock | Twilio Inc. Class A Common Stock |
| Country/Region | United States | United States |
| 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 | 3,940.41 billion USD | 31.26 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | March 13, 1986 | June 23, 2016 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | MSFT | TWLO |
|---|---|---|
| Total Return (1Y) | 10.30% | 61.15% |
| Total Return (3Y, Annualized) | 15.53% | 54.31% |
| Total Return (5Y, Annualized) | 11.01% | -7.91% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | MSFT | TWLO |
|---|---|---|
| Volatility (1Y, Annualized) | 33.91% | 63.75% |
| Beta (5Y) | 1.03 | 1.48 |
| Max Drawdown (5Y) | -37.15% | -86.25% |
| Avg. Volume (3M) | 22.95M | 3.05M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | MSFT | TWLO |
|---|---|---|
| Sharpe Ratio (1Y) | 0.18 | 0.89 |
| Sortino Ratio (1Y) | 0.28 | 1.49 |
Profitability
ROE (TTM)
Microsoft (MSFT) at 34.22% sits in the top ROE quartile, while Twilio (TWLO) at 14.92% is closer to the peer norm — stronger capital efficiency for MSFT.
MSFT
Software & Services industry group
34.22%
- Max
- 53.85%
- MSFT
- 34.22%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
TWLO
Software & Services industry group
14.92%
- Max
- 53.85%
- Q3
- 17.90%
- TWLO
- 14.92%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
Net Margin (TTM)
For every dollar of sales, both Microsoft (MSFT) at 41.17% and Twilio (TWLO) at 21.82% retain more as net profit than most peers, landing in the top net margin quartile of their industries.
MSFT
Software & Services industry group
41.17%
- MSFT
- 41.17%
- Max
- 41.17%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
TWLO
Software & Services industry group
21.82%
- Max
- 41.17%
- TWLO
- 21.82%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
Microsoft (MSFT) at 49.76% turns sales into operating profit above its industry’s benchmark range, while Twilio (TWLO) at 9.53% operates around its industry’s norm.
MSFT
Software & Services industry group
49.76%
- MSFT
- 49.76%
- Max
- 46.89%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
TWLO
Software & Services industry group
9.53%
- Max
- 46.89%
- Q3
- 17.64%
- TWLO
- 9.53%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | MSFT | TWLO |
|---|---|---|
| ROE (TTM) | 34.22% | 14.92% |
| ROA (TTM) | 14.41% | 2.69% |
| Net Margin (TTM) | 41.17% | 21.82% |
| Operating Margin (TTM) | 49.76% | 9.53% |
| Gross Margin (TTM) | 67.66% | 48.61% |
Growth
Revenue Growth
Both Microsoft (MSFT) at 17.79% and Twilio (TWLO) at 13.66% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Only one side can be read here: Microsoft (MSFT) reports EPS growth of 31.60%, ranked against its industry; Twilio (TWLO) has no EPS growth figure this period.
Growth Metrics
| Metric | MSFT | TWLO |
|---|---|---|
| Revenue Growth (YoY) | 17.79% | 13.66% |
| Revenue Growth (3Y CAGR) | 16.12% | 9.82% |
| EPS Growth (YoY) | 31.60% | -- |
| 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 Twilio (TWLO) at 4.47 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
- 2.77
- Median
- 1.67
- MSFT
- 1.23
- Q1
- 1.01
- Min
- 0.03
TWLO
Software & Services industry group
4.47
- Max
- 5.11
- TWLO
- 4.47
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- Min
- 0.03
Debt / Equity (MRQ)
Both Microsoft (MSFT) at 0.28 and Twilio (TWLO) at 0.12 fund their balance sheets with roughly industry-typical debt-to-equity mixes.
MSFT
Software & Services industry group
0.28
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- MSFT
- 0.28
- Q1
- 0.07
- Min
- 0.00
TWLO
Software & Services industry group
0.12
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- TWLO
- 0.12
- Q1
- 0.07
- Min
- 0.00
Financial Strength Metrics
| Metric | MSFT | TWLO |
|---|---|---|
| Current Ratio (MRQ) | 1.23 | 4.47 |
| Debt / Equity (MRQ) | 0.28 | 0.12 |
| Net Debt / EBITDA | 0.34 | -3.13 |
Dividends
Dividend Yield (TTM)
Twilio (TWLO) 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 0.69%, ranking against industry peers normally.
MSFT
Software & Services industry group
0.69%
- MSFT
- 0.69%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TWLO
Software & Services industry group
0.00%
- TWLO
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Twilio (TWLO) 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 19.00%, ranking against industry peers normally.
MSFT
Software & Services industry group
19.00%
- MSFT
- 19.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TWLO
Software & Services industry group
0.00%
- TWLO
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | MSFT | TWLO |
|---|---|---|
| Dividend Yield (TTM) | 0.69% | 0.00% |
| Dividend Payout Ratio (TTM) | 19.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Both Microsoft (MSFT) at 27.69 and Twilio (TWLO) at 25.38 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.
MSFT
Software & Services industry group
27.69
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- MSFT
- 27.69
- Q1
- 18.77
- Min
- 6.69
TWLO
Software & Services industry group
25.38
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- TWLO
- 25.38
- Q1
- 18.77
- Min
- 6.69
P/S Ratio (TTM)
Twilio (TWLO) at 5.36 is priced about in line with its industry on P/S ratio, while Microsoft (MSFT) at 11.37 sits in the pricier quartile — MSFT costs more per dollar of sales.
MSFT
Software & Services industry group
11.37
- Max
- 17.91
- MSFT
- 11.37
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
TWLO
Software & Services industry group
5.36
- Max
- 17.91
- Q3
- 8.78
- TWLO
- 5.36
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
On P/B ratio, both Microsoft (MSFT) at 8.38 and Twilio (TWLO) at 3.41 are valued close to their industries’ norm against book — neither stands out from peers.
MSFT
Software & Services industry group
8.38
- Max
- 16.63
- Q3
- 8.50
- MSFT
- 8.38
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
TWLO
Software & Services industry group
3.41
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- TWLO
- 3.41
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | MSFT | TWLO |
|---|---|---|
| P/E Ratio (TTM) | 27.69 | 25.38 |
| P/S Ratio (TTM) | 11.37 | 5.36 |
| P/B Ratio (MRQ) | 8.38 | 3.41 |
| Free Cash Flow Yield (TTM) | 0.08% | 3.45% |