Microsoft vs Apple: The Data That Shows Who's Still a Growth Stock

Phaetrix Aug 14, 2025

Most investors lump them together as “big mature tech.” That’s a costly mistake. Here’s what the numbers actually say.

Most people assume Microsoft and Apple are in the same stage of their life cycle — massive, mature, and past their best growth days. I used to think that too.

But when you compare their revenue growth, margins, and market positioning, the results are striking: Microsoft still qualifies as a true growth stock. Apple doesn’t even come close.

Here’s what the data shows — and why it matters for your portfolio.

Big Tech ≠ Dead Growth

A $3+ trillion market cap doesn’t automatically mean growth is over.

The real question is whether a business can still deliver:

• Revenue acceleration
• Profit expansion
• Operational efficiency

On those fundamentals, Microsoft and Apple tell very different stories.

Microsoft vs. Apple — Head-to-Head

Revenue growth: Microsoft continues to post double-digit revenue growth, fueled by Azure cloud services and enterprise demand. Apple’s revenue growth sits under 10% — remarkable for its size, but slower relative to peers.

Profitability: Microsoft’s operating margins consistently push near 40%, thanks to cloud scale and software leverage. Apple’s margins, while strong at ~24%, are tethered to hardware cycles and the iPhone ecosystem.

Cash generation: Apple is unmatched in free cash flow, generating nearly $95 billion annually. Microsoft, however, combines strong cash generation with higher reinvestment into AI and enterprise software — fueling future growth.

Valuation: Microsoft trades around 33x forward earnings, reflecting its premium for continued growth. Apple trades closer to 28x, signaling the market sees it more as a stable cash compounder than a growth rocket.

What It Means for Investors

If you want growth exposure:

• Microsoft is still a bet on cloud and AI transformation.
• Apple is more of a cash-generating value play with slower growth.

If you own both, understand they serve different purposes in your portfolio.

The Takeaway

Never assume two companies in the same sector have the same growth profile.

Microsoft has successfully evolved its business model — diversifying beyond Windows and Office into cloud, AI, and enterprise services. Apple remains anchored to the iPhone ecosystem: wildly profitable, but with natural limits on growth.

The numbers don’t lie: both will likely remain strong companies for decades, but only one is still a true growth stock.

💬 Question for you: Which metric do you think is most important for growth stock analysis? Comment below — I’d love to hear your take.