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

Updated on August 18, 2025

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

Company Profile

Symbol	MSFT	V
Company Name	Microsoft Corporation	Visa Inc.
Country	United States	United States
GICS Sector	Information Technology	Financials
GICS Industry	Software	Financial Services
Market Capitalization	3,869.56 billion USD	664.87 billion USD
Exchange	NasdaqGS	NYSE
Listing Date	March 13, 1986	March 19, 2008
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of MSFT and V 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. V: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	MSFT	V
5-Day Price Return	-0.05%	3.15%
13-Week Price Return	15.88%	-3.74%
26-Week Price Return	25.19%	-1.42%
52-Week Price Return	27.97%	31.81%
Month-to-Date Return	-2.42%	-0.85%
Year-to-Date Return	23.51%	8.39%
10-Day Avg. Volume	23.66M	6.98M
3-Month Avg. Volume	21.75M	6.60M
3-Month Volatility	15.92%	21.58%
Beta	1.03	0.92

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.

V

52.65%

Financial Services Industry

Max: 40.58%
Q3: 20.06%
Median: 10.67%
Q1: 4.19%
Min: -10.31%

V’s Return on Equity of 52.65% is exceptionally high, placing it well beyond the typical range for the Financial Services industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

MSFT vs. V: A comparison of their Return on Equity (TTM) against their respective Software and Financial Services 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.

V

52.16%

Financial Services Industry

Max: 52.86%
Q3: 25.58%
Median: 12.23%
Q1: 6.64%
Min: -9.92%

A Net Profit Margin of 52.16% places V in the upper quartile for the Financial Services industry, signifying strong profitability and more effective cost management than most of its peers.

MSFT vs. V: A comparison of their Net Profit Margin (TTM) against their respective Software and Financial Services 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.

V

62.21%

Financial Services Industry

Max: 77.28%
Q3: 37.68%
Median: 18.17%
Q1: 9.27%
Min: -8.19%

An Operating Profit Margin of 62.21% places V in the upper quartile for the Financial Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

MSFT vs. V: A comparison of their Operating Profit Margin (TTM) against their respective Software and Financial Services industry benchmarks.

Profitability at a Glance

Symbol	MSFT	V
Return on Equity (TTM)	32.44%	52.65%
Return on Assets (TTM)	18.20%	21.39%
Net Profit Margin (TTM)	36.15%	52.16%
Operating Profit Margin (TTM)	45.29%	62.21%
Gross Profit Margin (TTM)	68.82%	80.23%

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.

V

1.12

Financial Services Industry

Max: 4.58
Q3: 2.59
Median: 1.33
Q1: 0.69
Min: 0.01

For the Financial Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

MSFT vs. V: A comparison of their Current Ratio (MRQ) against their respective Software and Financial Services 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.

V

0.65

Financial Services Industry

Max: 4.96
Q3: 2.10
Median: 0.57
Q1: 0.12
Min: 0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Financial Services industry.

MSFT vs. V: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Financial Services 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.

V

24.71

Financial Services Industry

Max: 136.23
Q3: 56.08
Median: 6.55
Q1: 2.01
Min: -33.27

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial Services industry.

MSFT vs. V: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and Financial Services industry benchmarks.

Financial Strength at a Glance

Symbol	MSFT	V
Current Ratio (MRQ)	1.35	1.12
Quick Ratio (MRQ)	1.35	1.06
Debt-to-Equity Ratio (MRQ)	0.26	0.65
Interest Coverage Ratio (TTM)	891.80	24.71

Growth

Revenue Growth

MSFT vs. V: 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. V: 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

0.61%

Software Industry

Max: 0.08%
Q3: 0.03%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

MSFT’s Dividend Yield of 0.61% 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.

V

0.69%

Financial Services Industry

Max: 8.18%
Q3: 3.60%
Median: 1.56%
Q1: 0.00%
Min: 0.00%

V’s Dividend Yield of 0.69% is consistent with its peers in the Financial Services industry, providing a dividend return that is standard for its sector.

MSFT vs. V: A comparison of their Dividend Yield (TTM) against their respective Software and Financial Services 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.

V

22.33%

Financial Services Industry

Max: 155.56%
Q3: 63.71%
Median: 18.08%
Q1: 0.00%
Min: 0.00%

V’s Dividend Payout Ratio of 22.33% is within the typical range for the Financial Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

MSFT vs. V: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Financial Services industry benchmarks.

Dividend at a Glance

Symbol	MSFT	V
Dividend Yield (TTM)	0.61%	0.69%
Dividend Payout Ratio (TTM)	23.65%	22.33%

Valuation

Price-to-Earnings Ratio (TTM)

MSFT

38.73

Software Industry

Max: 149.35
Q3: 100.21
Median: 47.97
Q1: 26.77
Min: 11.68

MSFT’s P/E Ratio of 38.73 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.

V

32.48

Financial Services Industry

Max: 63.23
Q3: 32.10
Median: 14.41
Q1: 10.81
Min: 0.37

A P/E Ratio of 32.48 places V in the upper quartile for the Financial Services industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

MSFT vs. V: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Financial Services industry benchmarks.

Price-to-Sales Ratio (TTM)

MSFT

14.00

Software Industry

Max: 25.24
Q3: 13.52
Median: 8.15
Q1: 4.87
Min: 0.98

MSFT’s P/S Ratio of 14.00 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.

V

16.94

Financial Services Industry

Max: 11.16
Q3: 5.45
Median: 2.61
Q1: 1.25
Min: 0.04

The P/S Ratio is often not a primary valuation tool in the Financial Services industry.

MSFT vs. V: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Financial Services 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.

V

17.81

Financial Services Industry

Max: 7.09
Q3: 3.79
Median: 1.46
Q1: 0.83
Min: 0.04

At 17.81, V’s P/B Ratio is at an extreme premium to the Financial Services 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.

MSFT vs. V: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Financial Services industry benchmarks.

Valuation at a Glance

Symbol	MSFT	V
Price-to-Earnings Ratio (TTM)	38.73	32.48
Price-to-Sales Ratio (TTM)	14.00	16.94
Price-to-Book Ratio (MRQ)	10.76	17.81
Price-to-Free Cash Flow Ratio (TTM)	55.07	29.83