AMZN vs MSFT: Which Is the Better Buy?
Side-by-side comparison of Amazon.com, Inc. and Microsoft Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-20.
Amazon.com, Inc. · Consumer Cyclical
$259.34
+21.8% upside to fair value
Grade B
High Quality
VS
Microsoft Corporation · Technology
$429.25
-1.3% upside to fair value
Grade B
High Quality
QuantHub Verdict
AMZN has more upside to fair value
(+21.8%).
AMZN trades at a lower forward P/E
(26.5x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMZN |
MSFT |
| Current Price |
$259.34 |
$429.25 |
| Fair Value Estimate |
$316.00 |
$423.82 |
| Upside to Fair Value |
+21.8%
|
-1.3%
|
| Market Cap |
$2,789.8B |
$3,187.4B |
| Forward P/E |
26.5x
|
26.8x
|
| EV / EBITDA |
16.8x
|
17.2x
|
| Price / Sales |
3.9x
|
10.4x
|
| Price / FCF |
—
|
41.2x
|
| Revenue Growth YoY |
+17.0%
|
+16.7%
|
| Gross Margin |
51.8%
|
68.6%
|
| Operating Margin |
13.1%
|
46.7%
|
| Return on Equity |
21.5%
|
33.6%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
-0.81%
|
2.43%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Amazon delivered a landmark Q1 2026 with revenue of $181.5 billion up 17% year over year and diluted EPS of $2.78 versus the $1.63 consensus, driven by AWS reaccelerating to 28% growth, its fastest pace in fifteen quarters, and a record consolidated operating margin of 13.1%. AWS generated $37.6 billion in revenue at a 37.7% segment operating margin, contributing $14.2 billion in operating income…
Microsoft Corporation is a leading technology company specializing in software infrastructure, cloud computing, and productivity solutions. The company benefits from a high-quality business model characterized by durable competitive moats including strong switching costs and intangible assets such as its brand and cloud infrastructure. Under CEO Satya Nadella's leadership since 2014, Microsoft ha…
Accumulation Zones
| Metric |
AMZN |
MSFT |
| Zone Low |
$237.00 |
$317.87 |
| Zone High |
$268.60 |
$360.25 |
| In Buy Zone? |
Yes
|
No
|