Which stock is better: AAPL or MSFT?

Whether Apple Inc. (AAPL) or Microsoft Corporation (MSFT) is the better fit depends on your investment criteria. Compare valuation, profitability, growth and balance sheet metrics to see which one aligns with your goals.

What is the P/E ratio of AAPL vs MSFT?

AAPL trades at a P/E ratio of 35.96, while MSFT trades at 27.57. A lower P/E ratio can indicate a more attractive valuation.

What is the market cap difference between AAPL and MSFT?

AAPL has a market cap of about $4,60T, while MSFT is valued at around $3,69T.

AAPL vs MSFT

Over the past 12 months, AAPL returned +37% while MSFT returned -1%.

Apple Inc.

$313.45

-5.9%(1M)

Market Cap$4.60T

Technology

Consumer Electronics

P/E Ratio35.96

Return on Equity137.2%

P/B Ratio43.04

Dividend Yield0.3%

MSFT

Microsoft Corporation

Best value

$496.37

30.0%(1M)

Market Cap$3.69T

Technology

Software - Infrastructure

P/E Ratio27.57

Return on Equity33.2%

P/B Ratio8.33

Dividend Yield0.7%

Performance Comparison

Historical returns across multiple timeframes

AAPL leads 5/8

AAPL

Apple Inc.

+36.7%

1Y return

MSFT

Microsoft Corporation

-1.1%

1Y return

AAPL

MSFT

Short term

1M–6M

+24.3%

Medium term

YTD–1Y

+26.0%

Long term

3Y–10Y

+419.5%

Valuation

Compare price multiples and valuation ratios

AAPL: 2

MSFT: 3

Metric	AAPL	MSFT	Winner
P/E Ratio Share price relative to earnings per share	35.96	27.57	MSFT
P/S Ratio Share price relative to revenue per share	9.91	11.10	AAPL
P/B Ratio Share price relative to book value per share	43.04	8.33	MSFT
P/FCF Ratio Share price relative to free cash flow per share	33.85	55.01	AAPL
EV/EBITDA Enterprise value relative to EBITDA	27.72	18.29	MSFT

Profitability

Compare profit margins and returns on capital

AAPL: 3

MSFT: 3

Metric	AAPL	MSFT	Winner
Gross Margin Gross profit as a share of revenue	48.7%	67.9%	MSFT
Operating Margin Operating profit as a share of revenue	33.2%	46.8%	MSFT
Net Margin Net profit as a share of revenue	27.6%	40.3%	MSFT
Return on Equity Profit generated on shareholder capital	137.2%	33.2%	AAPL
Return on Assets Profit generated on total assets	33.6%	17.6%	AAPL
ROIC Profit generated on invested capital	51.9%	20.6%	AAPL

Growth

Compare revenue and earnings growth rates

AAPL: 1

MSFT: 5

Metric	AAPL	MSFT	Winner
Revenue Growth (YoY) Revenue change versus the prior year	6.4%	17.8%	MSFT
Revenue Growth (3Y) Annualised revenue growth over three years	1.8%	16.1%	MSFT
Revenue Growth (5Y) Annualised revenue growth over five years	8.7%	14.6%	MSFT
EPS Growth (YoY) Earnings per share change versus the prior year	22.7%	31.6%	MSFT
EPS Growth (3Y) Annualised earnings per share growth over three years	6.9%	22.9%	MSFT
EPS Growth (5Y) Annualised earnings per share growth over five years	17.9%	17.4%	AAPL

Balance Sheet

Compare financial stability and debt levels

AAPL: 1

MSFT: 4

Metric	AAPL	MSFT	Winner
Debt / Equity Total debt relative to shareholder equity	0.78	0.29	MSFT
Current Ratio Current assets relative to current liabilities	1.00	1.23	MSFT
Quick Ratio Liquid assets relative to current liabilities	0.93	1.22	MSFT
Interest Coverage Operating profit relative to interest expense	0.00	50.88	MSFT
Beta Volatility relative to the overall market	1.09	1.10	AAPL

Summary

MSFT wins 3–0

Valuation

MSFT

Profitability

Tie

Growth

MSFT

Balance Sheet

MSFT

MSFT is more attractively valued. MSFT demonstrates better growth. MSFT has the stronger balance sheet.

Take your analysis further

Dig into the full profiles of AAPL and MSFT, or start a new head-to-head comparison.

AAPL profile

MSFT profile New comparison