Microsoft Corporation (MSFT) vs NVIDIA Corporation (NVDA)

A side-by-side look at how these two compare on valuation, profitability and shareholder returns.

Microsoft vs NVIDIA at a glance

Both companies operate in the Information Technology sector, so these figures are broadly like-for-like.

MetricMSFTNVDA
Market cap$3.83T$5.28T
Price$513.53$217.55
P/E ratio (TTM)20.7937.85
P/B ratio (MRQ)6.2828.89
P/S ratio (TTM)8.3821.04
Revenue growth (1Y)17.79%65.47%
Return on equity (TTM)30.23%76.33%
Return on invested capital (TTM)27.12%65.60%
Gross margin (TTM)67.94%74.67%
Net margin (TTM)40.31%63.66%
Dividend yield (TTM)0.71%0.46%

How they differ

NVIDIA is the larger company at $5.28T versus $3.83T — about 1.4x the size.

On trailing earnings, Microsoft is the cheaper of the two at 20.79 against 37.85 for NVIDIA.

On sales, Microsoft is the cheaper of the two at 8.38 against 21.04 for NVIDIA.

NVIDIA leads on revenue growth over the past year, 65.47% against 17.79%.

NVIDIA leads on return on invested capital, 65.60% against 27.12%.

NVIDIA leads on gross margin, 74.67% against 67.94%.

Microsoft offers the higher yield at 0.71% against 0.46%.

Go deeper

Ratios describe the past. Whether either is worth owning depends on what you pay today.

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