MSFT vs SBUX: Which Is the Better Buy?
Side-by-side comparison of Microsoft Corporation and Starbucks Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-18.
Microsoft Corporation · Technology
$497.12
+41.3% upside to fair value
High Conviction
Grade A
High Quality
VS
Starbucks Corporation · Consumer Cyclical
$96.67
+12.3% upside to fair value
Med Conviction
Grade C
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 |
MSFT |
SBUX |
| Current Price |
$497.12 |
$96.67 |
| Fair Value Estimate |
$702.35 |
$108.52 |
| Upside to Fair Value |
+41.3%
|
+12.3%
|
| Market Cap |
$3,691.4B |
$110.2B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
18.3x
|
22.0x
|
| Price / Sales |
11.1x
|
2.9x
|
| Price / FCF |
55.1x
|
30.4x
|
| Revenue Growth YoY |
+17.7%
|
-1.4%
|
| Gross Margin |
67.9%
|
31.7%
|
| Operating Margin |
46.8%
|
9.4%
|
| Return on Equity |
33.2%
|
-24.3%
|
| Dividend Yield |
0.73% |
2.57% |
| FCF Yield |
1.81%
|
3.29%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
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…
Starbucks is the world's largest specialty coffee retailer, operating company-owned and licensed coffeehouses across North America, International, and Channel Development segments, with a brand that has historically supported premium pricing and global scale. The business quality is currently strained: revenue declined 1.4% year over year in the most recent quarter, TTM operating margin is 9.4%, …
Accumulation Zones
| Metric |
MSFT |
SBUX |
| Zone Low |
$526.76 |
$81.39 |
| Zone High |
$597.00 |
$92.24 |
| In Buy Zone? |
Yes
|
No
|