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MSFT vs. WDAY: Microsoft vs. Workday Stock Comparison

How do Microsoft (MSFT) and Workday (WDAY) 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 Workday (WDAY) both belong to the Software industry, though MSFT is classified under Systems Software while WDAY falls under Application Software.

Company profile comparison for Microsoft (MSFT) and Workday (WDAY)
Profile ItemMSFTWDAY
NameMicrosoft Corporation Common StockWorkday Inc Class A Common Stock
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareSoftware
GICS Sub-IndustrySystems SoftwareApplication Software
Market Capitalization3,940.41 billion USD46.49 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateMarch 13, 1986October 12, 2012
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

MSFT
WDAY
GSPC
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Microsoft (MSFT) vs. Workday (WDAY), 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 Workday (WDAY). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Microsoft (MSFT) and Workday (WDAY)
MetricMSFTWDAY
Total Return (1Y)10.30%-14.74%
Total Return (3Y, Annualized)15.53%-5.22%
Total Return (5Y, Annualized)11.01%-8.14%

Risk Profile

Drawdown History

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

Risk Metrics

Risk profile metrics for Microsoft (MSFT) and Workday (WDAY)
MetricMSFTWDAY
Volatility (1Y, Annualized)33.91%54.35%
Beta (5Y)1.031.01
Max Drawdown (5Y)-37.15%-63.38%
Avg. Volume (3M)22.95M3.14M

Risk-Adjusted Performance

Risk-Return Positioning

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MSFT and WDAY are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Microsoft (MSFT) and Workday (WDAY)
MetricMSFTWDAY
Sharpe Ratio (1Y)0.18-0.35
Sortino Ratio (1Y)0.28-0.54

Profitability

ROE (TTM)

Microsoft (MSFT) at 34.22% sits in the top ROE quartile, while Workday (WDAY) at 16.01% 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%

WDAY

Software & Services industry group

16.01%

Max
53.85%
Q3
17.90%
WDAY
16.01%
Median
6.59%
Q1
-9.59%
Min
-50.52%
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Microsoft (MSFT) vs. Workday (WDAY): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Microsoft (MSFT) at 41.17% retains a top-quartile share of revenue as profit, ahead of Workday (WDAY) at 12.32%, which keeps about the industry-typical share.

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%

WDAY

Software & Services industry group

12.32%

Max
41.17%
Q3
15.28%
WDAY
12.32%
Median
4.63%
Q1
-5.42%
Min
-33.17%
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Microsoft (MSFT) vs. Workday (WDAY): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Microsoft (MSFT) at 49.76% turns sales into operating profit above its industry’s benchmark range, while Workday (WDAY) at 11.82% 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%

WDAY

Software & Services industry group

11.82%

Max
46.89%
Q3
17.64%
WDAY
11.82%
Median
8.73%
Q1
-2.13%
Min
-30.45%
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Microsoft (MSFT) vs. Workday (WDAY): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Microsoft (MSFT) and Workday (WDAY)
MetricMSFTWDAY
ROE (TTM)34.22%16.01%
ROA (TTM)14.41%4.51%
Net Margin (TTM)41.17%12.32%
Operating Margin (TTM)49.76%11.82%
Gross Margin (TTM)67.66%75.80%

Growth

Revenue Growth

Both Microsoft (MSFT) at 17.79% and Workday (WDAY) at 13.10% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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

EPS Growth

Both Microsoft (MSFT) at 31.60% and Workday (WDAY) at 32.82% 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. Workday (WDAY): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Microsoft (MSFT) and Workday (WDAY)
MetricMSFTWDAY
Revenue Growth (YoY)17.79%13.10%
Revenue Growth (3Y CAGR)16.12%15.40%
EPS Growth (YoY)31.60%32.82%
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 Workday (WDAY) at 0.91 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for WDAY.

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

WDAY

Software & Services industry group

0.91

Max
5.11
Q3
2.77
Median
1.67
Q1
1.01
WDAY
0.91
Min
0.03
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Microsoft (MSFT) vs. Workday (WDAY): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both Microsoft (MSFT) at 0.28 and Workday (WDAY) at 0.58 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

WDAY

Software & Services industry group

0.58

Max
2.52
Q3
1.13
WDAY
0.58
Median
0.40
Q1
0.07
Min
0.00
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Microsoft (MSFT) vs. Workday (WDAY): A comparison of their debt-to-equity ratio against the Software & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Microsoft (MSFT) and Workday (WDAY)
MetricMSFTWDAY
Current Ratio (MRQ)1.230.91
Debt / Equity (MRQ)0.280.58
Net Debt / EBITDA0.340.23

Dividends

Dividend Yield (TTM)

Workday (WDAY) 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%

WDAY

Software & Services industry group

0.00%

WDAY
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Microsoft (MSFT) vs. Workday (WDAY): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Workday (WDAY) 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%

WDAY

Software & Services industry group

0.00%

WDAY
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Microsoft (MSFT) vs. Workday (WDAY): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Microsoft (MSFT) and Workday (WDAY)
MetricMSFTWDAY
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 Workday (WDAY) at 39.29 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

WDAY

Software & Services industry group

39.29

Max
112.94
Q3
60.32
WDAY
39.29
Median
32.91
Q1
18.77
Min
6.69
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Microsoft (MSFT) vs. Workday (WDAY): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

Workday (WDAY) at 4.58 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

WDAY

Software & Services industry group

4.58

Max
17.91
Q3
8.78
WDAY
4.58
Median
4.25
Q1
2.23
Min
0.02
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Microsoft (MSFT) vs. Workday (WDAY): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both Microsoft (MSFT) at 8.38 and Workday (WDAY) at 7.20 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

WDAY

Software & Services industry group

7.20

Max
16.63
Q3
8.50
WDAY
7.20
Median
4.30
Q1
1.92
Min
-3.90
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Microsoft (MSFT) vs. Workday (WDAY): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Microsoft (MSFT) and Workday (WDAY)
MetricMSFTWDAY
P/E Ratio (TTM)27.6939.29
P/S Ratio (TTM)11.374.58
P/B Ratio (MRQ)8.387.20
Free Cash Flow Yield (TTM)0.08%6.55%