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 2026-09-18.
Amazon.com, Inc. · Consumer Cyclical
$251.19
+18.5% upside to fair value
Med Conviction
Grade B
High Quality
VS
Microsoft Corporation · Technology
$497.12
+41.3% upside to fair value
High Conviction
Grade A
High Quality
QuantHub Verdict
MSFT has more upside to fair value
(+41.3%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
AMZN |
MSFT |
| Current Price |
$251.19 |
$497.12 |
| Fair Value Estimate |
$297.67 |
$702.35 |
| Upside to Fair Value |
+18.5%
|
+41.3%
|
| Market Cap |
$2,702.1B |
$3,691.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
11.2x
|
18.3x
|
| Price / Sales |
3.5x
|
11.1x
|
| Price / FCF |
—
|
55.1x
|
| Revenue Growth YoY |
+19.6%
|
+17.7%
|
| Gross Margin |
50.8%
|
67.9%
|
| Operating Margin |
12.1%
|
46.8%
|
| Return on Equity |
30.5%
|
33.2%
|
| Dividend Yield |
0% |
0.73% |
| FCF Yield |
—
|
1.81%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Amazon.com operates a vast global retail enterprise spanning online and physical stores, third-party seller services, advertising, subscription offerings, and Amazon Web Services, the world's largest cloud infrastructure provider. The business quality is high: trailing-twelve-month gross margin of 50.8%, operating margin of 12.1%, and net margin of 17.4% reflect a durable mix shift toward high-ma…
Microsoft is a global infrastructure-software platform spanning Azure, Microsoft 365, security, Dynamics, Windows, GitHub and AI copilots, with high business quality supported by enterprise distribution, explicitly cited switching costs, a $678 billion commercial RPO balance, 67.9% TTM gross margin, 46.8% TTM operating margin, 40.3% TTM net margin and 33.2% ROE. Revenue grew 17.7% and earnings gr…
Accumulation Zones
| Metric |
AMZN |
MSFT |
| Zone Low |
$223.25 |
$526.76 |
| Zone High |
$253.02 |
$597.00 |
| In Buy Zone? |
Yes
|
Yes
|