LIVE
ZM
Zoom Video Communications, Inc. · Technology
$86.36
-11.33% this month
VERSUS
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COMPARE
MSFT
Microsoft Corporation · Technology
$379.40
-9.11% this month
Scoreboard verdict
Across AI score, momentum, valuation, upside, operating margin
ZM
2
MSFT
2
Comparison scoreboard
MIXED SETUPAI Score
ZM 35.1
MSFT ✓59.0
1Y Return
ZM ✓+11.46%
MSFT -20.63%
Fwd P/E
ZM ✓13.71
MSFT 20.20
Target Up.
ZM +33.16%
MSFT ✓+43.67%
Op. Margin
ZM N/A
MSFT 46.33%
Metrics last refreshed: 6/20/2026
Quick take
ZM vs MSFT Stock Comparison: AI Score, Valuation, Performance and Upside
Zoom and Microsoft represent an asymmetric competition: Zoom is a focused video and collaboration company fighting for survival as Microsoft bundles Teams into its dominant enterprise productivity platform at no additional cost. Microsoft's scale, Teams bundling, Copilot AI, and Azure cloud position make it a far stronger enterprise software investment than Zoom, which is fighting to maintain relevance with AI differentiation and Zoom Phone.
ZM vs MSFT is not a symmetric comparison — Microsoft is one of the largest and most powerful technology companies in the world, and Zoom is a specialized collaboration vendor trying to carve out a sustainable niche despite Teams bundling. Investing in Zoom requires believing it can succeed as a standalone collaboration and phone vendor despite Microsoft's overwhelming bundling advantage.
Live analysis · updated 6/20/2026
ZM and MSFT are closely matched — they split the tracked metrics evenly. ZM leads on both 1-year return (+11.46%) and forward P/E (13.71x vs 20.20x for MSFT), a relatively favorable combination of momentum and valuation. Analyst consensus implies meaningfully more upside for MSFT (+43.67%) than for ZM (+33.16%).
Normalized 1Y performance
ZM
MSFT
Recent returns
ZM
MSFT
Analyst price targets & sentiment
ZM · 26 analysts
STRONG BUYHOLDSTRONG SELL
Buy (2.0/5.0)
Price target range
analyst low$79.00
analyst high$135.00
analyst mean$115.00
current price$86.36
+33.2% upside to analyst mean
MSFT · 54 analysts
STRONG BUYHOLDSTRONG SELL
Strong Buy (1.3/5.0)
Price target range
analyst low$400.00
analyst high$870.00
analyst mean$561.39
current price$379.40
+43.7% upside to analyst mean
Who should consider this stock?
ZM may suit investors who:
- →prefer a value investment in a profitable collaboration platform with AI differentiation via Zoom AI Companion
- →value Zoom Phone's cloud PBX replacement potential as a durable growth vector independent of video competition
- →want exposure to collaboration AI features that some enterprises prefer over Microsoft's Teams experience
- →are comfortable with near-zero revenue growth and Microsoft Teams competition as the dominant near-term risk
MSFT may suit investors who:
- →prefer the most diversified large-cap technology company with Azure AI, Microsoft 365 Copilot, and Teams as AI enterprise anchors
- →value Microsoft 365 Copilot as the broadest AI monetization in enterprise software globally
- →want a mega-cap technology compounder with cloud, productivity, gaming, and AI exposure in a single holding
- →are comfortable with premium large-cap valuation in exchange for unmatched enterprise AI platform positioning
Performance & AI score
| Metric | ZM | MSFT |
|---|---|---|
| AI score | 35.1 | 59.0 |
| AI rank | #1631 | #181 |
| Latest close | $86.36 | $379.40 |
| 1M return | -11.33% | -9.11% |
| 6M return | -2.69% | -20.31% |
| 1Y return | +11.46% | -20.63% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | ZM | MSFT |
|---|---|---|
| 1Y ago | $11.15K (+11.5%) started 2025-06-18 | $7.9K (-21.0%) started 2025-06-18 |
| 5Y ago | $2.31K (-76.9%) started 2021-06-18 | $15.45K (+54.5%) started 2021-06-21 |
| 10Y ago | $13.93K (+39.3%) started 2019-04-18 | $96.04K (+860.4%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | ZM | MSFT |
|---|---|---|
| Market cap | $25.32B | $2.9T |
| Trailing P/E | 12.72 | 23.26 |
| Forward P/E | 13.71 | 20.20 |
| Price/Sales | 5.13 | 11.87 |
| EV/Revenue | 3.92 | 9.27 |
| Analyst target | $115.00 | $561.39 |
| Target upside | +33.16% | +43.67% |
Growth, profitability & risk
| Metric | ZM | MSFT |
|---|---|---|
| Revenue growth | 5.50% | 18.30% |
| Earnings growth | 74.20% | 23.40% |
| EPS growth | +74.20% | +23.40% |
| FCF margin | +40.16% | +11.63% |
| Operating margin | N/A | 46.33% |
| Profit margin | 41.99% | 39.34% |
| ROIC proxy | 21.95% | 34.01% |
| Return on equity | 21.95% | 34.01% |
| Dividend yield | 0.00% | 0.93% |
| Beta | 0.99 | 1.10 |
| Debt/equity | 0.60 | 30.27 |
| Current ratio | 4.22 | 1.28 |
| Quick ratio | 4.03 | 1.14 |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
ZM max drawdown24.42%
MSFT max drawdown34.18%
ZM max wkly drop18.11%
MSFT max wkly drop14.43%
5Y risk snapshot
ZM max drawdown86.21%
MSFT max drawdown37.15%
ZM max wkly drop25.52%
MSFT max wkly drop14.43%
10Y risk snapshot
ZM max drawdown90.27%
MSFT max drawdown37.15%
ZM max wkly drop25.52%
MSFT max wkly drop16.36%
Performance metrics by period
| Period | Metric | ZM | MSFT |
|---|---|---|---|
| 1Y | Growth | +11.46% | -21.00% |
| CAGR | +11.47% | -21.02% | |
| Sharpe ratio | 0.36 | -0.96 | |
| Max drawdown | 24.42% | 34.18% | |
| Max daily drop | 11.58% | 9.99% | |
| Max wkly drop | 18.11% | 14.43% | |
| 5Y | Growth | -76.92% | +49.34% |
| CAGR | -25.42% | +8.36% | |
| Sharpe ratio | -0.54 | 0.27 | |
| Max drawdown | 86.21% | 37.15% | |
| Max daily drop | 16.69% | 9.99% | |
| Max wkly drop | 25.52% | 14.43% | |
| 10Y | Growth | +39.29% | +750.25% |
| CAGR | +4.73% | +23.88% | |
| Sharpe ratio | 0.27 | 0.76 | |
| Max drawdown | 90.27% | 37.15% | |
| Max daily drop | 17.37% | 14.74% | |
| Max wkly drop | 25.52% | 16.36% |
Business comparison
| Category | ZM | MSFT |
|---|---|---|
| Company | Zoom Video Communications, Inc. | Microsoft Corporation |
| Sector | Technology | Technology |
| Industry | N/A | Software - Infrastructure |
| Core business | Zoom provides cloud video conferencing, webinar, and phone (Zoom Phone) services for enterprises and SMBs. Zoom became the default video collaboration platform during COVID, but has faced significant headwinds as Microsoft Teams bundled competing video capabilities into Microsoft 365. Zoom is diversifying into AI-powered workplace tools — Zoom AI Companion includes meeting summaries, action items, and real-time coaching — and expanding its contact center and Zoom Phone businesses. | Microsoft is a technology conglomerate spanning enterprise productivity (Microsoft 365, Teams, SharePoint), cloud infrastructure (Azure), gaming (Xbox, Activision Blizzard), LinkedIn, and Dynamics 365. Microsoft 365 Copilot — AI embedded across Word, Excel, PowerPoint, Teams, Outlook, and more — represents Microsoft's most significant monetization opportunity in decades. Azure AI is the enterprise cloud platform of choice for OpenAI's GPT models, giving Microsoft privileged access to the most capable AI models for enterprise applications. |
| Investor focus | Investors track enterprise customer count and ARPU, Zoom Phone subscriber growth, AI Companion adoption, and operating margin sustainability as the company navigates a post-COVID normalization and Microsoft Teams competition. | Investors focus on Azure revenue growth and AI cloud spending share, Microsoft 365 Copilot paid seat adoption, operating margin sustainability as AI R&D and infrastructure investment scales, and gaming segment revenue from Activision integration. |
ZM strengths
- →Best-in-class video quality and ease of use maintain a loyal user base despite Teams bundling
- →Zoom Phone is growing into a meaningful cloud PBX replacement business with strong retention
- →AI Companion is differentiating Zoom with meeting intelligence features that Teams has been slower to deploy broadly
MSFT strengths
- →Azure AI and OpenAI partnership positions Microsoft as the enterprise AI infrastructure and application leader
- →Microsoft 365 Copilot is the most broadly deployed enterprise AI tool, bundled into Teams, Outlook, and Office applications across 300M+ commercial seats
- →Teams bundling within Microsoft 365 has made it the de facto enterprise video and collaboration platform, replacing standalone video vendors
Risks to watch — ZM
- →Microsoft Teams is bundled into Microsoft 365 subscriptions at no incremental cost, making it very difficult to compete on price in enterprise accounts
- →Revenue growth has decelerated dramatically from COVID peaks and is now growing at low single digits
- →Google Meet and Cisco Webex also compete for enterprise video without incremental cost within existing platform agreements
Risks to watch — MSFT
- →Azure growth must continue accelerating or meeting expectations for the stock to sustain premium valuation
- →Copilot monetization pace relative to the R&D and infrastructure investment is a key profitability watch item
- →Antitrust scrutiny of Microsoft's bundling practices in EU and FTC could create compliance costs
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