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

Updated on August 23, 2025

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

Company Profile

Symbol	MSFT	WDC
Company Name	Microsoft Corporation	Western Digital Corporation
Country	United States	United States
GICS Sector	Information Technology	Information Technology
GICS Industry	Software	Technology Hardware, Storage & Peripherals
Market Capitalization	3,759.10 billion USD	26.24 billion USD
Exchange	NasdaqGS	NasdaqGS
Listing Date	March 13, 1986	October 31, 1978
Security Type	Common Stock	Common Stock

Historical Performance

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

Historical Performance at a Glance

Symbol	MSFT	WDC
5-Day Price Return	-3.21%	-0.79%
13-Week Price Return	10.21%	49.13%
26-Week Price Return	23.18%	48.17%
52-Week Price Return	19.97%	53.77%
Month-to-Date Return	-5.21%	-3.88%
Year-to-Date Return	19.98%	67.87%
10-Day Avg. Volume	20.86M	5.75M
3-Month Avg. Volume	20.58M	6.77M
3-Month Volatility	15.87%	30.47%
Beta	1.04	1.73

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.

WDC

21.49%

Technology Hardware, Storage & Peripherals Industry

Max: 47.24%
Q3: 29.40%
Median: 9.11%
Q1: 6.06%
Min: -0.79%

WDC’s Return on Equity of 21.49% is on par with the norm for the Technology Hardware, Storage & Peripherals industry, indicating its profitability relative to shareholder equity is typical for the sector.

MSFT vs. WDC: A comparison of their Return on Equity (TTM) against their respective Software and Technology Hardware, Storage & Peripherals 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.

WDC

14.23%

Technology Hardware, Storage & Peripherals Industry

Max: 13.86%
Q3: 8.17%
Median: 4.62%
Q1: 3.65%
Min: -0.21%

WDC’s Net Profit Margin of 14.23% is exceptionally high, placing it well beyond the typical range for the Technology Hardware, Storage & Peripherals industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

MSFT vs. WDC: A comparison of their Net Profit Margin (TTM) against their respective Software and Technology Hardware, Storage & Peripherals 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.

WDC

22.10%

Technology Hardware, Storage & Peripherals Industry

Max: 17.80%
Q3: 10.33%
Median: 6.31%
Q1: 4.86%
Min: 2.53%

WDC’s Operating Profit Margin of 22.10% is exceptionally high, placing it well above the typical range for the Technology Hardware, Storage & Peripherals industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

MSFT vs. WDC: A comparison of their Operating Profit Margin (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Profitability at a Glance

Symbol	MSFT	WDC
Return on Equity (TTM)	32.44%	21.49%
Return on Assets (TTM)	18.20%	9.38%
Net Profit Margin (TTM)	36.15%	14.23%
Operating Profit Margin (TTM)	45.29%	22.10%
Gross Profit Margin (TTM)	68.82%	38.00%

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.

WDC

1.08

Technology Hardware, Storage & Peripherals Industry

Max: 2.47
Q3: 1.98
Median: 1.40
Q1: 1.26
Min: 0.70

WDC’s Current Ratio of 1.08 falls into the lower quartile for the Technology Hardware, Storage & Peripherals industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

MSFT vs. WDC: A comparison of their Current Ratio (MRQ) against their respective Software and Technology Hardware, Storage & Peripherals 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.

WDC

0.85

Technology Hardware, Storage & Peripherals Industry

Max: 1.47
Q3: 0.93
Median: 0.32
Q1: 0.19
Min: 0.00

WDC’s Debt-to-Equity Ratio of 0.85 is typical for the Technology Hardware, Storage & Peripherals industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

MSFT vs. WDC: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Technology Hardware, Storage & Peripherals 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.

WDC

2.04

Technology Hardware, Storage & Peripherals Industry

Max: 204.63
Q3: 90.22
Median: 21.70
Q1: 6.79
Min: -23.93

In the lower quartile for the Technology Hardware, Storage & Peripherals industry, WDC’s Interest Coverage Ratio of 2.04 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

MSFT vs. WDC: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Financial Strength at a Glance

Symbol	MSFT	WDC
Current Ratio (MRQ)	1.35	1.08
Quick Ratio (MRQ)	1.35	0.84
Debt-to-Equity Ratio (MRQ)	0.26	0.85
Interest Coverage Ratio (TTM)	891.80	2.04

Growth

Revenue Growth

MSFT vs. WDC: 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. WDC: 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

0.64%

Software Industry

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

MSFT’s Dividend Yield of 0.64% 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.

WDC

0.00%

Technology Hardware, Storage & Peripherals Industry

Max: 4.50%
Q3: 3.66%
Median: 1.90%
Q1: 0.00%
Min: 0.00%

WDC 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.

MSFT vs. WDC: A comparison of their Dividend Yield (TTM) against their respective Software and Technology Hardware, Storage & Peripherals 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.

WDC

15.60%

Technology Hardware, Storage & Peripherals Industry

Max: 142.87%
Q3: 66.07%
Median: 42.79%
Q1: 0.00%
Min: 0.00%

WDC’s Dividend Payout Ratio of 15.60% is within the typical range for the Technology Hardware, Storage & Peripherals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

MSFT vs. WDC: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Dividend at a Glance

Symbol	MSFT	WDC
Dividend Yield (TTM)	0.64%	0.00%
Dividend Payout Ratio (TTM)	23.65%	15.60%

Valuation

Price-to-Earnings Ratio (TTM)

MSFT

37.23

Software Industry

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

MSFT’s P/E Ratio of 37.23 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.

WDC

13.66

Technology Hardware, Storage & Peripherals Industry

Max: 43.16
Q3: 27.56
Median: 17.85
Q1: 12.48
Min: 6.21

WDC’s P/E Ratio of 13.66 is within the middle range for the Technology Hardware, Storage & Peripherals industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

MSFT vs. WDC: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Price-to-Sales Ratio (TTM)

MSFT

13.46

Software Industry

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

MSFT’s P/S Ratio of 13.46 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

WDC

1.94

Technology Hardware, Storage & Peripherals Industry

Max: 4.27
Q3: 1.99
Median: 0.93
Q1: 0.45
Min: 0.04

WDC’s P/S Ratio of 1.94 aligns with the market consensus for the Technology Hardware, Storage & Peripherals industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

MSFT vs. WDC: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Technology Hardware, Storage & Peripherals 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.

WDC

3.99

Technology Hardware, Storage & Peripherals Industry

Max: 12.51
Q3: 6.11
Median: 1.73
Q1: 1.01
Min: 0.31

WDC’s P/B Ratio of 3.99 is within the conventional range for the Technology Hardware, Storage & Peripherals 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.

MSFT vs. WDC: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Valuation at a Glance

Symbol	MSFT	WDC
Price-to-Earnings Ratio (TTM)	37.23	13.66
Price-to-Sales Ratio (TTM)	13.46	1.94
Price-to-Book Ratio (MRQ)	10.76	3.99
Price-to-Free Cash Flow Ratio (TTM)	52.94	18.27