AMAZON COM INC vs MICROSOFT CORPORATION. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Priced well apart, near 41 and 26 times trailing earnings, over businesses that could hardly differ more. Microsoft keeps 36 cents of net income on the revenue dollar; Amazon keeps 9, the arithmetic of a company still mostly a retailer with a very profitable cloud bolted on. Microsoft earns 28% on equity to Amazon's 15, on less debt, and converts 2.5% of its price into free cash while Amazon's free-cash yield sits slightly negative, because Amazon reinvests more than all of what it makes. Two different bets at very different prices: one on a margin already banked, the other on the margin retail might eventually reach.
Comparison updated 2026-06-15.
| Metric | AMZN | MSFT |
|---|---|---|
| Price | $245.35 | $385.09 |
| Market cap | $2.67T | $2.87T |
| Sector | Retail | Software |
| Stage | Mature | Mature |
| Implied growth (priced in) | — | +15.0% |
| P/E | 29.4 | 22.9 |
| P/B | 6.04 | 6.92 |
| P/S | 3.59 | 9.01 |
| EV/EBITDA | 17.3 | 15.8 |
| Revenue growth | +14.2% | +17.9% |
| Gross margin | — | 67.6% |
| Operating margin | 13.1% | 46.3% |
| Net margin | 8.9% | 36.0% |
| Return on equity | 15.0% | 27.6% |
| Return on assets | 7.2% | 16.5% |
| Return on invested capital | 11.9% | 26.0% |
| FCF yield | -0.1% | 2.5% |
| Dividend yield | — | 0.9% |
| Debt / equity | 0.28 | 0.12 |
| Current ratio | 1.18 | 1.28 |
| Altman Z (solvency) | 7.38 | 7.32 |
| Piotroski F (quality) | 5 / 9 | 5 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.