Amazon vs Microsoft (AMZN vs MSFT)
Amazon (AMZN) vs Microsoft (MSFT) in plain English: P/E, growth, margins, debt and dividend side by side, key differences and which fits each investor profile.
Amazon (AMZN) and Microsoft (MSFT) are companies from different sectors (retail and software and cloud) that many people compare. Here are Amazon and Microsoft side by side with their real figures as of November 4, 2026: what sets them apart, which fits each kind of investor and the most common questions, without telling you whether to buy Amazon or Microsoft.
Amazon vs Microsoft: the figures
| Figure | Amazon | Microsoft |
|---|---|---|
| Share price | $266.03 (November 4, 2026) | $555.80 (November 4, 2026) |
| Market cap | $2.88 trillion | $4.13 trillion |
| P/E (TTM) | 21.5x | 29.0x |
| Forward P/E | 24.4x | 23.0x |
| Revenue growth (quarter) | +12.1% | +18.8% |
| Net margin (TTM) | 16.9% | 41.2% |
| Net debt / EBITDA | 1.0x | 0.3x |
| Dividend yield | 0.00% | 0.75% |
| Beta | 1.50 | 1.04 |
Amazon and Microsoft figures from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026; N/A means that Amazon or Microsoft figure is not available, and we never estimate it.
3 key differences between Amazon and Microsoft
- Profitability: for every 100 of sales, Microsoft keeps 41.2 as net profit and Amazon keeps 16.9.
- Valuation: Microsoft trades at 29.0x its annual earnings and Amazon at 21.5x; the market pays more for each dollar of Microsoft profit, usually because it expects more growth.
- Volatility: Amazon stock moves more (beta 1.50) than Microsoft (beta 1.04); the higher the beta, the more it amplifies market swings.
Amazon or Microsoft: which fits your profile
- If you want growth: Microsoft is growing faster today, so it fits better with investors who put business growth first, usually accepting a higher P/E and a bumpier ride.
- If you want income (dividends): Microsoft pays the higher dividend relative to its price.
- If you prefer caution: Microsoft has less debt relative to its profit, which usually gives more room in a bad year.
- If price is what matters most to you: Amazon trades on the lower P/E; check first whether that is an opportunity or a sign of a business that grows less.
Neither Amazon nor Microsoft wins on everything, and owning both is also an option: spreading money across several companies or an index fund reduces what rides on each one.
How Amazon and Microsoft make money
Amazon (AMZN)
Amazon reports three segments. North America, its largest by sales, and International include its online store, fees from third-party sellers, advertising and subscriptions like Prime. AWS, its cloud computing arm, sells storage, computing and AI services to businesses and generates most of the company's operating profit. Full Amazon analysis.
Microsoft (MSFT)
Microsoft reports three segments. Intelligent Cloud, the largest, includes the Azure cloud platform and server products. Productivity and Business Processes covers Office subscriptions, LinkedIn and Dynamics business software. More Personal Computing includes Windows licenses, Xbox consoles and games, Surface devices and Bing search advertising. Full Microsoft analysis.
Frequently asked questions: Amazon vs Microsoft
Is Amazon or Microsoft the better stock?
Choosing between Amazon and Microsoft depends on what you are looking for. Microsoft is growing faster right now, and Amazon trades on the lower P/E. Fintols does not tell you whether to buy Amazon or Microsoft: it shows you the differences so you can decide.
Which pays a higher dividend, Amazon or Microsoft?
As of November 4, 2026, Microsoft yields 0.75% and Amazon pays none. Also check how much of their profit Amazon and Microsoft pay out: if it is more than they earn, it cannot last.
Which is more expensive, Amazon or Microsoft?
On P/E, Microsoft (29.0x) is more expensive than Amazon (21.5x) as of November 4, 2026. A higher P/E can be justified if earnings grow faster, so compare it with each company's growth in the table.
Can I own both Amazon and Microsoft?
Yes. Many people spread their money across several companies, such as Amazon and Microsoft, or use index funds so they do not depend on just one. If you are starting out, decide how much you want to invest and for how long before buying Amazon or Microsoft.
More comparisons with Amazon or Microsoft
More companies like Amazon and Microsoft: retail stocks and software and cloud stocks. Educational content about Amazon and Microsoft, not investment advice.