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

Updated on August 27, 2025

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

Company Profile

Symbol	MSFT	WFC
Company Name	Microsoft Corporation	Wells Fargo & Company
Country	United States	United States
GICS Sector	Information Technology	Financials
GICS Industry	Software	Banks
Market Capitalization	3,748.25 billion USD	256.88 billion USD
Exchange	NasdaqGS	NYSE
Listing Date	March 13, 1986	June 1, 1972
Security Type	Common Stock	Common Stock

Historical Performance

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

Historical Performance at a Glance

Symbol	MSFT	WFC
5-Day Price Return	-1.08%	3.43%
13-Week Price Return	10.86%	9.27%
26-Week Price Return	21.58%	-0.20%
52-Week Price Return	21.35%	43.30%
Month-to-Date Return	-5.48%	-0.55%
Year-to-Date Return	19.63%	14.17%
10-Day Avg. Volume	22.11M	12.64M
3-Month Avg. Volume	20.62M	16.68M
3-Month Volatility	15.65%	23.69%
Beta	1.04	1.27

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.

WFC

11.36%

Banks Industry

Max: 26.37%
Q3: 15.92%
Median: 12.25%
Q1: 8.69%
Min: 0.15%

WFC’s Return on Equity of 11.36% is on par with the norm for the Banks industry, indicating its profitability relative to shareholder equity is typical for the sector.

MSFT vs. WFC: A comparison of their Return on Equity (TTM) against their respective Software and Banks 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.

WFC

22.19%

Banks Industry

Max: 54.20%
Q3: 35.70%
Median: 28.97%
Q1: 22.53%
Min: 6.98%

Falling into the lower quartile for the Banks industry, WFC’s Net Profit Margin of 22.19% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

MSFT vs. WFC: A comparison of their Net Profit Margin (TTM) against their respective Software and Banks 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.

WFC

25.35%

Banks Industry

Max: 63.35%
Q3: 44.59%
Median: 37.24%
Q1: 28.25%
Min: 13.37%

WFC’s Operating Profit Margin of 25.35% is in the lower quartile for the Banks industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

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

Profitability at a Glance

Symbol	MSFT	WFC
Return on Equity (TTM)	32.44%	11.36%
Return on Assets (TTM)	18.20%	1.06%
Net Profit Margin (TTM)	36.15%	22.19%
Operating Profit Margin (TTM)	45.29%	25.35%
Gross Profit Margin (TTM)	68.82%	--

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.

WFC

Banks Industry

Max: --
Q3: --
Median: --
Q1: --
Min: --

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

MSFT vs. WFC: A comparison of their Current Ratio (MRQ) against their respective Software and Banks 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.

WFC

2.01

Banks Industry

Max: 4.75
Q3: 2.62
Median: 1.02
Q1: 0.39
Min: 0.00

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

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

WFC

Banks Industry

Max: --
Q3: --
Median: --
Q1: --
Min: --

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

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

Financial Strength at a Glance

Symbol	MSFT	WFC
Current Ratio (MRQ)	1.35	--
Quick Ratio (MRQ)	1.35	--
Debt-to-Equity Ratio (MRQ)	0.26	2.01
Interest Coverage Ratio (TTM)	891.80	--

Growth

Revenue Growth

MSFT vs. WFC: 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. WFC: 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.

WFC

2.53%

Banks Industry

Max: 10.27%
Q3: 5.83%
Median: 3.81%
Q1: 2.50%
Min: 0.00%

WFC’s Dividend Yield of 2.53% is consistent with its peers in the Banks industry, providing a dividend return that is standard for its sector.

MSFT vs. WFC: A comparison of their Dividend Yield (TTM) against their respective Software and Banks 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.

WFC

31.00%

Banks Industry

Max: 147.07%
Q3: 80.55%
Median: 54.40%
Q1: 35.71%
Min: 0.00%

WFC’s Dividend Payout Ratio of 31.00% is in the lower quartile for the Banks industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

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

Dividend at a Glance

Symbol	MSFT	WFC
Dividend Yield (TTM)	0.64%	2.53%
Dividend Payout Ratio (TTM)	23.65%	31.00%

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.

WFC

12.27

Banks Industry

Max: 20.05
Q3: 12.65
Median: 10.21
Q1: 7.54
Min: 2.74

WFC’s P/E Ratio of 12.27 is within the middle range for the Banks 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. WFC: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Banks 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.

WFC

1.91

Banks Industry

Max: 5.06
Q3: 2.98
Median: 2.24
Q1: 1.59
Min: 0.45

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

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

WFC

1.42

Banks Industry

Max: 2.18
Q3: 1.36
Median: 1.09
Q1: 0.81
Min: 0.20

WFC’s P/B Ratio of 1.42 is in the upper tier for the Banks industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

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

Valuation at a Glance

Symbol	MSFT	WFC
Price-to-Earnings Ratio (TTM)	37.23	12.27
Price-to-Sales Ratio (TTM)	13.46	1.91
Price-to-Book Ratio (MRQ)	10.76	1.42
Price-to-Free Cash Flow Ratio (TTM)	52.94	16.66