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 2026-04-10.
Amazon.com, Inc. · Consumer Cyclical
$238.12
+59.3% upside to fair value
Grade B
High Quality
VS
Microsoft Corporation · Technology
$372.20
+32.4% upside to fair value
High Conviction
Grade A
QuantHub Verdict
AMZN has more upside to fair value
(+59.3%).
MSFT trades at a lower forward P/E
(22.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMZN |
MSFT |
| Current Price |
$238.12 |
$372.20 |
| Fair Value Estimate |
$379.40 |
$493.00 |
| Upside to Fair Value |
+59.3%
|
+32.4%
|
| Market Cap |
$2,556.2B |
$2,763.6B |
| Forward P/E |
32.8x
|
22.0x
|
| EV / EBITDA |
15.9x
|
17.5x
|
| Price / Sales |
3.6x
|
9.1x
|
| Price / FCF |
332.2x
|
35.8x
|
| Revenue Growth YoY |
+18.4%
|
+14.9%
|
| Gross Margin |
50.3%
|
68.8%
|
| Operating Margin |
11.2%
|
45.6%
|
| Return on Equity |
21.9%
|
29.6%
|
| Dividend Yield |
0% |
0.94% |
| FCF Yield |
0.3%
|
2.8%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Amazon.com, Inc. operates as the world's largest e-commerce and cloud computing company, with a diversified revenue base spanning online retail, third-party seller services, AWS cloud, advertising, and subscription services. The business quality is high due to its durable competitive moats including AWS's leadership in cloud infrastructure and Amazon's dominant e-commerce platform. Despite strong…
Microsoft is the world's largest software company, operating a three-pillar empire across cloud (Azure), productivity (Office 365/Teams), and personal computing (Windows/Xbox). Azure is the second-largest cloud platform globally with 24% market share and growing at 38-39% in constant currency, while Microsoft Cloud revenue crossed $168.9B in FY2025. The stock has dropped 33% from its highs to $37…
Accumulation Zones
| Metric |
AMZN |
MSFT |
| Zone Low |
$284.55 |
$370.00 |
| Zone High |
$322.49 |
$419.00 |
| In Buy Zone? |
Yes
|
Yes
|