Amazon (AMZN) vs Microsoft (MSFT): Stock Comparison
Data as of November 7, 2026. Refreshed weekly from SEC filings and market data.
Amazon is cheaper on earnings, at 20.9 times against 27.9; Microsoft keeps the higher net margin (41.2% against 16.9%); Microsoft grew revenue faster over the last year (17.9% against 15.3%); dividend yield is about the same (0.0% and 0.7%). Amazon clears 8 of this site's 8 value filters and Microsoft 2. Figures are as of November 7, 2026; each is on the page below with its source.
How do Amazon and Microsoft compare on the numbers?
| Measure | Amazon (AMZN) | Microsoft (MSFT) | Clearer lead |
|---|---|---|---|
| Share price | $259.30 | $530.61 | |
| Market value | $2.81 trillion | $3.98 trillion | |
| P/E ratio (trailing) | 20.9 | 27.9 | AMZN |
| PEG ratio | 0.77 | 1.53 | AMZN |
| Free-cash-flow yield | 0.6% | 1.5% | About the same |
| Net profit margin | 16.9% | 41.2% | MSFT |
| Revenue growth, last year | 15.3% | 17.9% | MSFT |
| Return on equity | 26.7% | 33.2% | MSFT |
| Debt to equity | 0.28 | 0.23 | MSFT |
| Dividend yield | 0.0% | 0.7% | About the same |
| Margin of safety (DCF) | -949.5% | -288.7% | MSFT |
| Value filters passed (of 8) | 8 | 2 | AMZN |
| Distance from 52-week high | -8.7% | -4.5% |
How have Amazon and Microsoft shares done against each other?
Amazon 149Microsoft 157
Each share price set to 100 on Nov 2021, to Nov 2026. Price only: dividends are not included.
From Nov 2021 to Nov 2026, Amazon shares are up 49% and Microsoft shares up 57%, so Microsoft has pulled ahead of Amazon by 9 points of the starting price. The deepest fall from a prior high in that window was 52% for Amazon and 35% for Microsoft.
| Period | Amazon (AMZN) | Microsoft (MSFT) |
|---|---|---|
| Last 1 year | +6.7% | +6.7% |
| Last 3 years | +85.6% | +48.8% |
| Last 5 years | +47.4% | +57.9% |
Which has grown faster, Amazon or Microsoft?
Over 5 years, Amazon grew revenue 13.2% a year and earnings per share 28.0% a year; Microsoft grew revenue 14.6% and earnings per share 17.4%. Its net margin averaged 6.4% at Amazon and 36.6% at Microsoft.
| Measure | Amazon (AMZN) | Microsoft (MSFT) |
|---|---|---|
| Latest fiscal year ended | Dec 2025 | Jun 2026 |
| Revenue, first year to latest | $386 billion to $717 billion | $168 billion to $332 billion |
| Revenue growth per year | 13.2% | 14.6% |
| Earnings per share, first year to latest | $2.09 to $7.17 | $8.05 to $17.95 |
| Earnings per share growth per year | 28.0% | 17.4% |
| Net margin, latest year | 10.8% | 40.3% |
| Net margin, average of the years | 6.4% | 36.6% |
| Free cash flow margin, latest year | 1.1% | 20.2% |
From each company's 10-K filings (SEC EDGAR), over its latest 5 years. Fiscal years end in different months, so each is shown for its own latest 5 years.
What growth does each share price assume?
| Measure | Amazon (AMZN) | Microsoft (MSFT) |
|---|---|---|
| Free cash flow growth the price implies | n/a | n/a |
| Free cash flow per share | $1.45 | $7.99 |
| Margin of safety on this site's DCF | -949.5% | -288.7% |
Amazon's price is above what this site's DCF gives even at 40% a year of free cash flow growth, so the price assumes more than any growth rate tested.
Microsoft's price is above what this site's DCF gives even at 40% a year of free cash flow growth, so the price assumes more than any growth rate tested.
The same model and baseline as every stock page. A price that asks for less growth is not a better company, only a lower bar to clear.
Where is each stronger?
Where Amazon leads
- Lower P/E: 20.9 against 27.9
- Lower PEG: 0.77 against 1.53
- More of the 8 value filters: 8 against 2
- Faster earnings-per-share growth over its filed record: 28.0% against 17.4%
Where Microsoft leads
- Higher net margin: 41.2% against 16.9%
- Faster revenue growth last year: 17.9% against 15.3%
- Higher return on equity: 33.2% against 26.7%
- Less debt for its equity: 0.23 against 0.28
- Higher margin of safety on this site's DCF: -288.7% against -949.5%
- Faster revenue growth over its filed record: 14.6% against 13.2%
- A higher net margin in its latest filed year: 40.3% against 10.8%
- A higher average net margin: 36.6% against 6.4%
- A higher free-cash-flow margin in its latest filed year: 20.2% against 1.1%
About the same on: free-cash-flow yield, dividend yield. A lead needs a clear gap (10% apart on a ratio, 1 point on a percentage), so a rounding difference never names a winner. A lead on one measure is not a verdict on the company.
How do the businesses differ?
Amazon. Amazon runs one of the largest online stores and Amazon Web Services (AWS), the cloud platform that produces most of its profit. It also sells advertising and Prime subscriptions, and operates physical stores such as Whole Foods.
Microsoft. Microsoft sells software, cloud computing and devices. Its Azure cloud platform and Microsoft 365 business subscriptions are the main profit engines, alongside Windows, LinkedIn, GitHub and the Xbox gaming business.
Amazon is in Retail and Microsoft in Technology.
What stands out about Amazon
- No filter fails. AMZN passes 8 of the 8 value filters.
- Strongest against peers: net margin. At 16.9% (peer median 7.3%) it ranks 2nd of 21 among retail stocks this site tracks.
- Weakest against peers: free-cash-flow yield. At 0.6% (peer median 4.3%) it ranks 21st of 21 among retail stocks this site tracks.
What stands out about Microsoft
- Misses 4 of the 8 value filters. It fails Trailing P/E < 25 (27.90), PEG Ratio < 1.5 (1.53) and Price/Book < 8 (8.46) and 1 more; the other 2 pass and 2 were not evaluated.
- The margin of safety is falling. It went from -245% on Oct 7 to -289% on Nov 7 across 8 weekly readings.
- Strongest against peers: net margin. At 41.2% (peer median 17.3%) it ranks 6th of 44 among technology stocks this site tracks.
Frequently asked questions about Amazon and Microsoft
Which is cheaper, Amazon or Microsoft?
On trailing earnings, Amazon is cheaper: Amazon trades at 20.9 times and Microsoft at 27.9 times. On free cash flow, the yields are 0.6% and 1.5%. Cheaper is not the same as better value: read the growth each price assumes below.
Which pays the higher dividend, Amazon or Microsoft?
Their yields are about the same: Amazon 0.0% and Microsoft 0.7% over the last year.
Which has grown faster, Amazon or Microsoft?
Over their latest filed five years, Amazon grew revenue 13.2% a year and Microsoft 14.6%; earnings per share grew 28.0% and 17.4% a year.
Which has more debt, Amazon or Microsoft?
Amazon has more debt for its equity: debt to equity is 0.28 for Amazon and 0.23 for Microsoft. A very high figure can also come from buybacks that shrank equity.
Which is more profitable, Amazon or Microsoft?
Microsoft keeps more of each sales dollar as profit: 16.9% for Amazon and 41.2% for Microsoft, with a return on equity of 26.7% and 33.2%.
Which passes more of the 8 value filters?
Amazon clears more: Amazon 8 of 8 and Microsoft 2 of 8. The filters are this site's own value rules, not a prediction.
Where do these numbers come from?
Prices, ratios and yield are from this site's weekly data as of November 7, 2026; growth and margins by year are from each company's 10-K filings (sources on Amazon and Microsoft). The DCF is the same model on every stock page. See Editorial Standards. Educational, not investment advice.