CSCO vs. MSFT
CSCO (Cisco Systems, Inc.) and MSFT (Microsoft Corporation) are both stocks. Both are in the Technology sector — CSCO in Communication Equipment, MSFT in Software - Infrastructure. Over the past 10 years, CSCO returned 18.77%/yr vs 24.41%/yr for MSFT. A 0.51 correlation means they provide meaningful diversification when combined.
Performance
CSCO vs. MSFT - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, CSCO achieves a 56.90% return, which is significantly higher than MSFT's -18.20% return. Over the past 10 years, CSCO has underperformed MSFT with an annualized return of 18.77%, while MSFT has yielded a comparatively higher 24.41% annualized return.
CSCO
- 1D
- -0.50%
- 1M
- 1.15%
- YTD
- 56.90%
- 6M
- 55.85%
- 1Y
- 86.72%
- 3Y*
- 35.63%
- 5Y*
- 21.03%
- 10Y*
- 18.77%
MSFT
- 1D
- -1.48%
- 1M
- -6.46%
- YTD
- -18.20%
- 6M
- -16.96%
- 1Y
- -17.15%
- 3Y*
- 5.60%
- 5Y*
- 9.48%
- 10Y*
- 24.41%
CSCO vs. MSFT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
CSCO Cisco Systems, Inc. | 56.90% | 33.47% | 21.00% | 9.30% | -22.46% | 45.76% | -3.49% | 13.81% | 16.57% | 31.27% |
MSFT Microsoft Corporation | -18.20% | 15.58% | 12.93% | 58.19% | -28.02% | 52.48% | 42.53% | 57.56% | 20.80% | 40.73% |
Correlation
The correlation between CSCO and MSFT is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.18 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.30 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.44 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.50 |
Correlation (All Time) Calculated using the full available price history since Mar 26, 1990 | 0.51 |
Over the past year, the correlation between CSCO and MSFT has dropped to 0.18 - well below their long-term average of 0.51, suggesting their price drivers have been diverging.
Fundamentals
CSCO:
$476.73B
MSFT:
$2.93T
CSCO:
$3.00
MSFT:
$16.79
CSCO:
39.89
MSFT:
23.46
CSCO:
33.47
MSFT:
1.64
CSCO:
7.85
MSFT:
9.23
CSCO:
9.76
MSFT:
7.08
CSCO:
$60.75B
MSFT:
$318.27B
CSCO:
$39.08B
MSFT:
$217.41B
CSCO:
$13.98B
MSFT:
$200.96B
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
CSCO vs. MSFT — Risk / Return Rank
CSCO
MSFT
CSCO vs. MSFT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Cisco Systems, Inc. (CSCO) and Microsoft Corporation (MSFT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| CSCO | MSFT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +3.50 | ||
| Sortino ratioReturn per unit of downside risk | +4.18 | ||
| Omega ratioGain probability vs. loss probability | 1.51 | 0.90 | +0.62 |
| Calmar ratioReturn relative to maximum drawdown | 6.42 | -0.51 | +6.93 |
| Martin ratioReturn relative to average drawdown | 17.47 | -1.03 | +18.50 |
Loading charts...
Drawdowns
CSCO vs. MSFT - Drawdown Comparison
The maximum CSCO drawdown since its inception was -89.26%, which is greater than MSFT's maximum drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for CSCO and MSFT.
Loading charts...
Drawdown Indicators
| CSCO | MSFT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -89.26% | -69.38% | -19.88% |
Max Drawdown (1Y)Largest decline over 1 year | -13.57% | -33.91% | +20.34% |
Max Drawdown (3Y)Largest decline over 3 years | -20.16% | -33.91% | +13.75% |
Max Drawdown (5Y)Largest decline over 5 years | -36.68% | -37.15% | +0.47% |
Max Drawdown (10Y)Largest decline over 10 years | -41.95% | -37.15% | -4.80% |
Current DrawdownCurrent decline from peak | -8.02% | -26.89% | +18.87% |
Average DrawdownAverage peak-to-trough decline | -40.11% | -21.78% | -18.33% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.98% | 16.64% | -11.66% |
Volatility
CSCO vs. MSFT - Volatility Comparison
Cisco Systems, Inc. (CSCO) has a higher volatility of 11.99% compared to Microsoft Corporation (MSFT) at 10.31%. This indicates that CSCO's price experiences larger fluctuations and is considered to be riskier than MSFT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| CSCO | MSFT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 11.99% | 10.31% | +1.68% |
Volatility (6M)Calculated over the trailing 6-month period | 27.19% | 22.43% | +4.76% |
Volatility (1Y)Calculated over the trailing 1-year period | 30.89% | 25.53% | +5.36% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 24.88% | 26.69% | -1.81% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 25.90% | 27.07% | -1.17% |
Dividends
CSCO vs. MSFT - Dividend Comparison
CSCO's dividend yield for the trailing twelve months is around 1.38%, more than MSFT's 0.90% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
CSCO Cisco Systems, Inc. | 1.38% | 2.12% | 2.69% | 3.07% | 3.17% | 2.32% | 3.20% | 2.88% | 2.95% | 2.95% | 3.28% | 3.02% |
MSFT Microsoft Corporation | 0.90% | 0.70% | 0.73% | 0.74% | 1.06% | 0.68% | 0.94% | 1.20% | 1.69% | 1.86% | 2.37% | 2.33% |
Financials
CSCO vs. MSFT - Financials Comparison
This section allows you to compare key financial metrics between Cisco Systems, Inc. and Microsoft Corporation. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
CSCO vs. MSFT - Profitability Comparison
CSCO - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Cisco Systems, Inc. reported a gross profit of 10.08B and revenue of 15.84B. Therefore, the gross margin over that period was 63.6%.
MSFT - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Microsoft Corporation reported a gross profit of 56.06B and revenue of 82.89B. Therefore, the gross margin over that period was 67.6%.
CSCO - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Cisco Systems, Inc. reported an operating income of 3.96B and revenue of 15.84B, resulting in an operating margin of 25.0%.
MSFT - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Microsoft Corporation reported an operating income of 38.40B and revenue of 82.89B, resulting in an operating margin of 46.3%.
CSCO - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Cisco Systems, Inc. reported a net income of 3.37B and revenue of 15.84B, resulting in a net margin of 21.3%.
MSFT - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Microsoft Corporation reported a net income of 31.78B and revenue of 82.89B, resulting in a net margin of 38.3%.
Frequently Asked Questions
CSCO and MSFT have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
CSCO has higher volatility (11.99%) compared to MSFT (10.31%). In terms of maximum drawdown, CSCO dropped -89.26% vs MSFT's -69.38%.
CSCO currently has the higher Sharpe Ratio (2.83 vs -0.67), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
Find the right allocation for CSCO and MSFT
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer