Apple vs Microsoft: Which Stock Could Bring Higher Returns?
Apple and Microsoft are two of the biggest companies in the world. But if you had to choose only one for the next 5 years, which one could potentially bring a better return?
I compared their latest full-year results, and the difference is interesting.
In FY2025, Apple generated around $416B in revenue and $112B in net income. Its revenue grew by about 6%, with the iPhone bringing in roughly $210B and Services $109B.
Microsoft generated around $282B in revenue and $102B in net income. Its revenue grew by 15%, while its profit margin was around 36%. Azure also passed $75B in annual revenue.
So Apple is still the bigger business, but Microsoft is growing faster and is more profitable.
Apple's biggest strength is its ecosystem. The iPhone, Services and other products keep users within the same ecosystem and generate huge amounts of cash.
Microsoft has a different growth story. Cloud computing, enterprise software and AI are becoming increasingly important, with Azure being one of its biggest growth drivers.
So, which one could bring higher returns?
For me, Microsoft currently has the more interesting growth story. But there's one thing I wouldn't ignore: valuation. A great company isn't necessarily a great investment if you pay too much for it.
If I had to choose today, I'd lean toward MSFT for the next 5 years.
What would you choose — $AAPLB or $MSFTB ? 👇
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