MSFT vs. ZM: Microsoft vs. Zoom Communications Stock Comparison

November 11, 2026

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

Company profile comparison for Microsoft (MSFT) and Zoom Communications (ZM)
Profile Item	MSFT	ZM
Name	Microsoft Corporation Common Stock	Zoom Communications, 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	Software
GICS Sub-Industry	Systems Software	Application Software
Market Capitalization	3,940.41 billion USD	26.23 billion USD
Currency	USD	USD
Exchange	Nasdaq	Nasdaq
Listing Date	March 13, 1986	April 18, 2019
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

MSFT

GSPC

Microsoft (MSFT) vs. Zoom Communications (ZM), 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 Zoom Communications (ZM). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Microsoft (MSFT) and Zoom Communications (ZM)
Metric	MSFT	ZM
Total Return (1Y)	10.30%	12.58%
Total Return (3Y, Annualized)	15.53%	14.89%
Total Return (5Y, Annualized)	11.01%	-18.67%

Risk Profile

Drawdown History

MSFT

GSPC

Microsoft (MSFT) vs. Zoom Communications (ZM), 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 Zoom Communications (ZM). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Microsoft (MSFT) and Zoom Communications (ZM)
Metric	MSFT	ZM
Volatility (1Y, Annualized)	33.91%	45.03%
Beta (5Y)	1.03	0.99
Max Drawdown (5Y)	-37.15%	-79.08%
Avg. Volume (3M)	22.95M	2.88M

Risk-Adjusted Performance

Risk-Return Positioning

MSFT and ZM 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 Zoom Communications (ZM)
Metric	MSFT	ZM
Sharpe Ratio (1Y)	0.18	0.18
Sortino Ratio (1Y)	0.28	0.28

Profitability

ROE (TTM)

Both Microsoft (MSFT) at 34.22% and Zoom Communications (ZM) at 32.14% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

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%

ZM

Software & Services industry group

32.14%

Max: 53.85%
ZM: 32.14%
Q3: 17.90%
Median: 6.59%
Q1: -9.59%
Min: -50.52%

Microsoft (MSFT) vs. Zoom Communications (ZM): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Zoom Communications (ZM) at 65.19% keeps the most of each sales dollar — above its industry’s net margin range — and Microsoft (MSFT) at 41.17% also retains a top-quartile 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%

ZM

Software & Services industry group

65.19%

ZM: 65.19%
Max: 41.17%
Q3: 15.28%
Median: 4.63%
Q1: -5.42%
Min: -33.17%

Microsoft (MSFT) vs. Zoom Communications (ZM): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Microsoft (MSFT) at 49.76% shows unusually strong operating efficiency — above its industry’s operating margin range — and Zoom Communications (ZM) at 24.61% also operates in the top quartile.

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%

ZM

Software & Services industry group

24.61%

Max: 46.89%
ZM: 24.61%
Q3: 17.64%
Median: 8.73%
Q1: -2.13%
Min: -30.45%

Microsoft (MSFT) vs. Zoom Communications (ZM): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Microsoft (MSFT) and Zoom Communications (ZM)
Metric	MSFT	ZM
ROE (TTM)	34.22%	32.14%
ROA (TTM)	14.41%	6.11%
Net Margin (TTM)	41.17%	65.19%
Operating Margin (TTM)	49.76%	24.61%
Gross Margin (TTM)	67.66%	77.66%

Growth

Revenue Growth

Microsoft (MSFT) at 17.79% is around its peer norm for revenue growth, while Zoom Communications (ZM) at 4.36% drops into the bottom quartile, signaling weaker demand or pricing momentum.

Microsoft (MSFT) vs. Zoom Communications (ZM): A comparison of their Revenue Growth across different time periods.

EPS Growth

Zoom Communications (ZM) at 92.52% sits in the top EPS growth quartile, while Microsoft (MSFT) at 31.60% is closer to the peer norm — faster per-share earnings growth for ZM.

Microsoft (MSFT) vs. Zoom Communications (ZM): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Microsoft (MSFT) and Zoom Communications (ZM)
Metric	MSFT	ZM
Revenue Growth (YoY)	17.79%	4.36%
Revenue Growth (3Y CAGR)	16.12%	3.49%
EPS Growth (YoY)	31.60%	92.52%
EPS Growth (3Y CAGR)	22.86%	162.93%

Financial Strength

Current Ratio (MRQ)

Microsoft (MSFT) at 1.23 keeps current ratio within its industry’s typical mid-range, while Zoom Communications (ZM) at 3.83 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

ZM

Software & Services industry group

3.83

Max: 5.11
ZM: 3.83
Q3: 2.77
Median: 1.67
Q1: 1.01
Min: 0.03

Microsoft (MSFT) vs. Zoom Communications (ZM): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Zoom Communications (ZM) at 0.01 keeps leverage in the lower industry quartile, while Microsoft (MSFT) at 0.28 runs a more typical debt-to-equity mix.

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

ZM

Software & Services industry group

0.01

Max: 2.52
Q3: 1.13
Median: 0.40
Q1: 0.07
ZM: 0.01
Min: 0.00

Microsoft (MSFT) vs. Zoom Communications (ZM): 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 Zoom Communications (ZM)
Metric	MSFT	ZM
Current Ratio (MRQ)	1.23	3.83
Debt / Equity (MRQ)	0.28	0.01
Net Debt / EBITDA	0.34	-5.39

Dividends

Dividend Yield (TTM)

Zoom Communications (ZM) 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%

ZM

Software & Services industry group

0.00%

ZM: 0.00%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Microsoft (MSFT) vs. Zoom Communications (ZM): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Zoom Communications (ZM) 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%

ZM

Software & Services industry group

0.00%

ZM: 0.00%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Microsoft (MSFT) vs. Zoom Communications (ZM): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Microsoft (MSFT) and Zoom Communications (ZM)
Metric	MSFT	ZM
Dividend Yield (TTM)	0.69%	0.00%
Dividend Payout Ratio (TTM)	19.00%	0.00%

Valuation

P/E Ratio (TTM)

Zoom Communications (ZM) at 8.34 sits in the cheaper P/E ratio quartile, while Microsoft (MSFT) at 27.69 is closer to its industry’s usual earnings multiple — a discount for ZM, though growth and earnings durability still matter.

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

ZM

Software & Services industry group

8.34

Max: 112.94
Q3: 60.32
Median: 32.91
Q1: 18.77
ZM: 8.34
Min: 6.69

Microsoft (MSFT) vs. Zoom Communications (ZM): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

Zoom Communications (ZM) at 5.25 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

ZM

Software & Services industry group

5.25

Max: 17.91
Q3: 8.78
ZM: 5.25
Median: 4.25
Q1: 2.23
Min: 0.02

Microsoft (MSFT) vs. Zoom Communications (ZM): 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 Zoom Communications (ZM) at 2.32 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

ZM

Software & Services industry group

2.32

Max: 16.63
Q3: 8.50
Median: 4.30
ZM: 2.32
Q1: 1.92
Min: -3.90

Microsoft (MSFT) vs. Zoom Communications (ZM): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Microsoft (MSFT) and Zoom Communications (ZM)
Metric	MSFT	ZM
P/E Ratio (TTM)	27.69	8.34
P/S Ratio (TTM)	11.37	5.25
P/B Ratio (MRQ)	8.38	2.32
Free Cash Flow Yield (TTM)	0.08%	7.53%