MICROSOFT CORPORATION vs NVIDIA CORP. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Nvidia earns 70 cents on every dollar of equity and 53 on every dollar of assets, the kind of return a company posts when demand outruns the capital it needs to meet it. Microsoft, broader and more settled, earns a still-excellent 28% on equity and 16% on assets, and it does so with little leverage, a 0.12 debt-to-equity. The gap is structural rather than managerial: Nvidia sells scarce silicon designs at a 75% gross margin and 66% operating, while Microsoft spreads across software, cloud, and the cost base each of those carries, landing at 68% and 46%. The market has noticed, paying near 36 times earnings for the chip designer against roughly 25 for Microsoft. What separates them is asset intensity, and right now the lighter, scarcer side is compounding capital fastest.
Comparison updated 2026-06-15.
| Metric | MSFT | NVDA |
|---|---|---|
| Price | $385.09 | $210.99 |
| Market cap | $2.87T | $5.15T |
| Sector | Software | Semiconductors |
| Stage | Mature | Mature |
| Implied growth (priced in) | +15.0% | — |
| P/E | 22.9 | 32.3 |
| P/B | 6.92 | 26.33 |
| P/S | 9.01 | 20.30 |
| EV/EBITDA | 15.8 | 31.5 |
| Revenue growth | +17.9% | +69.1% |
| Gross margin | 67.6% | 74.9% |
| Operating margin | 46.3% | 65.6% |
| Net margin | 36.0% | 54.3% |
| Return on equity | 27.6% | 70.4% |
| Return on assets | 16.5% | 53.1% |
| Return on invested capital | 26.0% | 66.1% |
| FCF yield | 2.5% | 2.3% |
| Dividend yield | 0.9% | 0.0% |
| Debt / equity | 0.12 | 0.05 |
| Current ratio | 1.28 | 3.44 |
| Altman Z (solvency) | 7.32 | 9.15 |
| Piotroski F (quality) | 5 / 9 | 4 / 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.