Meta Platforms, Inc. vs MICROSOFT CORPORATION, two Software stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Nearly identical net margins, both near 36%, yet the market prices them several turns apart, Microsoft near 26 times trailing earnings to Meta's 19. Microsoft answers the premium with breadth and balance: a 68% gross margin, the lighter debt load at 0.12 to equity, and a return on equity near 28% that leans on no financial engineering. Meta returns more, 33% on equity, and turns more of its price into free cash, 3.2% to 2.5%. The multiple is doing the disagreeing; the income statements sit closer than the price tags.
Comparison updated 2026-06-15.
| Metric | META | MSFT |
|---|---|---|
| Price | $669.25 | $385.09 |
| Market cap | $1.72T | $2.87T |
| Sector | Software | Software |
| Stage | Mature | Mature |
| Implied growth (priced in) | — | +15.0% |
| P/E | 24.3 | 22.9 |
| P/B | 7.04 | 6.92 |
| P/S | 7.98 | 9.01 |
| EV/EBITDA | 16.0 | 15.8 |
| Revenue growth | +26.2% | +17.9% |
| Gross margin | — | 67.6% |
| Operating margin | 40.6% | 46.3% |
| Net margin | 36.9% | 36.0% |
| Return on equity | 32.6% | 27.6% |
| Return on assets | 20.1% | 16.5% |
| Return on invested capital | 23.1% | 26.0% |
| FCF yield | 2.8% | 2.5% |
| Dividend yield | 0.3% | 0.9% |
| Debt / equity | 0.24 | 0.12 |
| Current ratio | 2.35 | 1.28 |
| Altman Z (solvency) | 7.44 | 7.32 |
| Piotroski F (quality) | 7 / 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.