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December 1, 2025 10:00 AM 4 min read

Comparative Study: Microsoft And Industry Competitors In Software Industry

by Benzinga Insights Benzinga Staff Writer
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In the dynamic and fiercely competitive business environment, conducting a thorough analysis of companies is crucial for investors and industry enthusiasts. In this article, we will perform an extensive industry comparison, evaluating Microsoft (NASDAQ:MSFT) in relation to its major competitors in the Software industry. By closely examining crucial financial metrics, market position, and growth prospects, we aim to offer valuable insights for investors and shed light on company's performance within the industry.

Microsoft Background

When analyzing Microsoft, the following trends become evident:

Debt To Equity Ratio

The debt-to-equity (D/E) ratio helps evaluate the capital structure and financial leverage of a company.

Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.

In light of the Debt-to-Equity ratio, a comparison between Microsoft and its top 4 peers reveals the following information:

  • Microsoft is in a relatively stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.17.

  • This implies that the company relies less on debt financing and has a more favorable balance between debt and equity.

Key Takeaways

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Posted In:
NewsMarketsTrading IdeasBZI-IA
MSFT Logo
MSFTMicrosoft Corp
$384.980.13%
Overview

Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).

Company P/E P/B P/S ROE EBITDA (in billions) Gross Profit (in billions) Revenue Growth
Microsoft Corp 34.99 10.07 12.50 7.85% $48.06 $53.63 18.43%
Oracle Corp 46.75 23.84 9.86 13.12% $6.12 $10.04 12.17%
ServiceNow Inc 98.24 14.92 13.43 4.52% $0.89 $2.63 21.81%
Palo Alto Networks Inc 120.34 15.29 14.11 4.05% $0.5 $1.84 15.66%
Fortinet Inc 33.39 82.07 9.55 33.9% $0.64 $1.39 14.38%
Gen Digital Inc 28.98 6.62 3.68 5.56% $0.5 $0.95 25.26%
Monday.Com Ltd 116.96 5.85 6.55 1.06% $0.0 $0.28 26.24%
UiPath Inc 462 4.42 5.06 0.09% $-0.02 $0.3 14.38%
Dolby Laboratories Inc 25.74 2.46 4.87 1.89% $0.06 $0.27 0.73%
CommVault Systems Inc 70.17 25.88 5.10 5.12% $0.02 $0.22 18.39%
Qualys Inc 27.30 9.54 7.91 9.7% $0.06 $0.14 10.41%
Teradata Corp 23.67 12.19 1.68 20.25% $0.09 $0.25 -5.45%
Average 95.78 18.46 7.44 9.02% $0.81 $1.66 14.0%
  • The stock's Price to Earnings ratio of 34.99 is lower than the industry average by 0.37x, suggesting potential value in the eyes of market participants.

  • Considering a Price to Book ratio of 10.07, which is well below the industry average by 0.55x, the stock may be undervalued based on its book value compared to its peers.

  • With a relatively high Price to Sales ratio of 12.5, which is 1.68x the industry average, the stock might be considered overvalued based on sales performance.

  • With a Return on Equity (ROE) of 7.85% that is 1.17% below the industry average, it appears that the company exhibits potential inefficiency in utilizing equity to generate profits.

  • The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $48.06 Billion is 59.33x above the industry average, highlighting stronger profitability and robust cash flow generation.

  • Compared to its industry, the company has higher gross profit of $53.63 Billion, which indicates 32.31x above the industry average, indicating stronger profitability and higher earnings from its core operations.

  • The company's revenue growth of 18.43% is notably higher compared to the industry average of 14.0%, showcasing exceptional sales performance and strong demand for its products or services.

For Microsoft in the Software industry, the PE and PB ratios suggest that the stock is undervalued compared to its peers. However, the high PS ratio indicates that the market values its revenue more highly. In terms of ROE, Microsoft's performance is lower than its peers, while its high EBITDA and gross profit margins indicate strong operational efficiency. Additionally, the high revenue growth rate reflects a positive outlook for the company's future prospects.

MSFT Logo
MSFTMicrosoft Corp
$384.980.13%
Overview
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