Head to head · SEC data as of July 15, 2026

Amazon vs Microsoft: which has the stronger fundamentals?

Amazon

77

Quality score · out of 100

Microsoft

92

Quality score · out of 100

Microsoft comes in ahead: a quality score of 92 versus 77 for Amazon. Microsoft wins on net margin (39.3% vs 13.8%), ROE (30.2% vs 23.2%) and cash generation (FCF) (22.9% vs -2.1%). Amazon answers with earnings growth (30.2% vs 20.5%).

The metrics, head to head

MetricAmazonMicrosoft
Quality score (0-100)7792
Net margin13.8%39.3%
Gross margin68.3%
ROE23.2%30.2%
Net debt/EBITDA0.12×0.05×
FCF margin-2.1%22.9%
Revenue growth (annualized)13.3%14.9%
Earnings growth (annualized)30.2%20.5%

TTM metrics with official SEC data, refreshed daily. Bold green marks the winner of each metric. A dash means the metric doesn't apply or isn't reliable.

What each one does

Amazon. Amazon dominates e-commerce, but its profit comes mainly from AWS, the world's largest cloud-computing provider. It rounds out the business with advertising and its Prime subscription.

Microsoft. Microsoft is one of the world's largest tech companies. It makes money from enterprise software (Windows, Office/Microsoft 365), but its growth engine is the cloud (Azure), and it has positioned itself as a leader in embedding AI into business products.

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What this comparison doesn't tell you

The score measures business quality, not whether the stock is cheap or expensive: the better company can be the worse investment if you overpay. For the valuation verdict, enter each one's current price in the analyzer:

Analyze Amazon →Analyze Microsoft →

Frequently asked questions

Who has the stronger fundamentals today, Amazon or Microsoft?

By the StockSemáforo model (profitability, growth and financial strength, built on official SEC data), Microsoft scores higher: 92 versus 77 out of 100. The score is recomputed nightly with the latest filings.

Does that make Microsoft the better investment?

No. The score measures business quality, not valuation: an excellent company can trade at an excessive price and be a poor investment at that price. To find out whether it's cheap or expensive, enter its current quote in the StockSemáforo analyzer.

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