Bank of America (BAC) vs Microsoft (MSFT)
Head-to-head comparison of performance, valuation, growth, profitability and dividends. Prices delayed 15 minutes; data as of Oct 8, 2026.
Summary
Bank of America (BAC) has outperformed Microsoft (MSFT) over the past year, gaining 6.4% versus a gain of 1.1%. Over five years, MSFT leads with a +74.1% price change compared with +15.4% for BAC. Microsoft is the larger company by market cap ($3.88 trillion vs $374.88 billion), about 10.4 times the size.
On valuation, Bank of America trades at a lower forward P/E (10.2x vs 22.1x for Microsoft). Bank of America offers the higher dividend yield (2.09% vs 0.70%). Microsoft converts more of its revenue into profit, with a net margin of 40.3% versus 27.0%.
Summary generated from market data by MetaCap's automated system. Methodology
Relative performance
Percent change in share price from the first common trading day shown; excludes dividends.
Head-to-head
| Metric | BAC | MSFT |
|---|---|---|
| Share price | $53.61 | $522.61 |
| Market cap | $374.88B | $3.88T |
| 1-day change | +0.17% | -1.35% |
| YTD return | -2.69% | +9.54% |
| 1-year return | +6.42% | +1.10% |
| 5-year return | +15.42% | +74.14% |
| P/E ratio (TTM) | 12.38 | 29.11 |
| Forward P/E | 10.22 | 22.07 |
| EPS (TTM) | $4.33 | $17.95 |
| Dividend yield | 2.09% | 0.70% |
| Annual dividend | $1.12 | $3.64 |
| Revenue (latest FY) | $113.10B | $331.84B |
| Revenue growth (YoY) | +6.84% | +17.79% |
| Net income (latest FY) | $30.51B | $133.75B |
| Gross margin | — | 67.94% |
| Operating margin | — | 46.78% |
| Net margin | 26.98% | 40.31% |
| 52-week high | $65.23 | $553.72 |
| 52-week low | $46.12 | $349.20 |
| Distance from 52-week high | -17.81% | -5.62% |
| Analyst consensus | strong_buy | strong_buy |
| Avg. price target upside | +25.59% | +12.44% |
| Average volume | 33.38M | 27.86M |
| Shares outstanding | 6.99B | 7.43B |
| Employees | 211,000 | 223,000 |
| Sector | Finance | Technology |
| Industry | Major Banks | Computer Software: Prepackaged Software |
Highlighted cells mark the higher value for growth, returns, margins and yield, and the lower value for P/E ratios. Highlighting is a mechanical comparison, not a recommendation.
Key differences
- Microsoft is about 10.4 times larger than Bank of America by market value ($3.88T vs $374.88B).
- Microsoft trades at a higher earnings multiple (29.1x vs 12.4x trailing P/E).
- Bank of America offers a meaningfully higher dividend yield (2.09% vs 0.70%).
- Microsoft is more profitable, keeping 40.3 cents of every revenue dollar as net income versus 27.0 cents for Bank of America.
- Microsoft grew revenue faster in its latest fiscal year (+17.79% vs +6.84%).
- The two companies sit in different sectors: Bank of America in Finance and Microsoft in Technology.
About Bank of America
BAC stock →Bank of America Corporation, through its subsidiaries, provides various financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates through four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.
Finance · Major Banks · 211,000 employees
About Microsoft
MSFT stock →Microsoft Corporation, a technology company, develops and supports a portfolio of technology solutions for individuals and businesses worldwide. Its products include operating systems, server applications, business solution applications, software development tools, desktop and server management tools, and video games; and devices, such as PCs, tablets, gaming and entertainment consoles, other intelligent devices, and related accessories.
Technology · Computer Software: Prepackaged Software · 223,000 employees
BAC vs MSFT FAQ
Which is bigger, Bank of America or Microsoft?
Microsoft (MSFT) is larger, with a market capitalization of $3.88T compared with $374.88B for Bank of America (BAC).
Which stock has performed better over the past year, BAC or MSFT?
BAC returned +6.42% over the past 12 months, compared with +1.10% for MSFT (price return, excluding dividends). Past performance does not predict future results.
Which has the lower P/E ratio, BAC or MSFT?
BAC has the lower trailing P/E at 12.4, versus 29.1 for MSFT. A lower P/E is not by itself a sign of a better investment; it can reflect slower expected growth or higher risk.
Which pays a higher dividend, Bank of America or Microsoft?
Bank of America has the higher yield at 2.09%, compared with 0.70% for Microsoft.
Are Bank of America and Microsoft in the same industry?
No. Bank of America is in the Finance sector, while Microsoft is in Technology.