TEX vs. MSFT

Last updated Jun 3, 2026

TEX (Terex Corporation) and MSFT (Microsoft Corporation) are both stocks. TEX operates in Farm & Heavy Construction Machinery (Industrials), while MSFT operates in Software - Infrastructure (Technology). Over the past 10 years, TEX returned 12.74%/yr vs 25.43%/yr for MSFT. At a 0.26 correlation, their price movements are largely independent.

Performance

TEX vs. MSFT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Terex Corporation (TEX) and Microsoft Corporation (MSFT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TEX achieves a 15.17% return, which is significantly higher than MSFT's -8.34% return. Over the past 10 years, TEX has underperformed MSFT with an annualized return of 12.74%, while MSFT has yielded a comparatively higher 25.43% annualized return.

TEX

• 1D: 5.32%
• 1M: -0.89%
• YTD: 15.17%
• 6M: 32.21%
• 1Y: 41.07%
• 3Y*: 7.09%
• 5Y*: 4.38%
• 10Y*: 12.74%

MSFT

• 1D: -4.17%
• 1M: 6.71%
• YTD: -8.34%
• 6M: -9.54%
• 1Y: -3.71%
• 3Y*: 10.44%
• 5Y*: 13.35%
• 10Y*: 25.43%

*Multi-year figures are annualized to reflect compound growth (CAGR)

TEX vs. MSFT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TEX Terex Corporation	15.17%	17.25%	-18.59%	36.10%	-1.44%	27.22%	17.82%	9.67%	-42.22%	54.26%
MSFT Microsoft Corporation	-8.34%	15.58%	12.93%	58.19%	-28.02%	52.48%	42.53%	57.56%	20.80%	40.73%

Correlation

The correlation between TEX and MSFT is 0.05, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.05
Correlation (3Y) Calculated over the trailing 3-year period	0.17
Correlation (5Y) Calculated over the trailing 5-year period	0.26
Correlation (10Y) Calculated over the trailing 10-year period	0.27
Correlation (All Time) Calculated using the full available price history since Mar 27, 1990	0.26

Over the past year, the correlation between TEX and MSFT has dropped to 0.05 - well below their long-term average of 0.26, suggesting their price drivers have been diverging.

Fundamentals

EPS TEX : $2.24 MSFT : $16.79
PE Ratio TEX : 27.36 MSFT : 26.28
PEG Ratio TEX : 2.29 MSFT : 1.84
PS Ratio TEX : 0.51 MSFT : 10.34
Total Revenue (TTM) TEX : $5.93B MSFT : $318.27B
Gross Profit (TTM) TEX : $1.03B MSFT : $217.41B
EBITDA (TTM) TEX : $449.00M MSFT : $200.96B

Return for Risk

TEX vs. MSFT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TEX

TEX Risk / Return Rank: 66
TEX Sharpe Ratio Rank: 68
TEX Sortino Ratio Rank: 64
TEX Omega Ratio Rank: 63
TEX Calmar Ratio Rank: 66
TEX Martin Ratio Rank: 69

MSFT

MSFT Risk / Return Rank: 33
MSFT Sharpe Ratio Rank: 34
MSFT Sortino Ratio Rank: 28
MSFT Omega Ratio Rank: 29
MSFT Calmar Ratio Rank: 36
MSFT Martin Ratio Rank: 37

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

TEX vs. MSFT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Terex Corporation (TEX) 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.

	TEX	MSFT	Difference
Sharpe ratio Return per unit of total volatility	0.88	-0.15	+1.02
Sortino ratio Return per unit of downside risk	1.48	-0.04	+1.52
Omega ratio Gain probability vs. loss probability	1.19	1.00	+0.19
Calmar ratio Return relative to maximum drawdown	1.35	-0.10	+1.45
Martin ratio Return relative to average drawdown	3.72	-0.21	+3.93
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TEX vs. MSFT - Sharpe Ratio Comparison

The current TEX Sharpe Ratio is 0.88, which is higher than the MSFT Sharpe Ratio of -0.15. The chart below compares the historical Sharpe Ratios of TEX and MSFT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	TEX	MSFT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.88	-0.15	+1.02
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.10	0.50	-0.41
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.28	0.94	-0.66
Sharpe Ratio (All Time) Calculated using the full available price history	0.10	0.75	-0.65

Drawdowns

TEX vs. MSFT - Drawdown Comparison

The maximum TEX drawdown since its inception was -91.96%, which is greater than MSFT's maximum drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for TEX and MSFT.

Drawdown Indicators

	TEX	MSFT	Difference
Max Drawdown Largest peak-to-trough decline	-91.96%	-69.38%	-22.58%
Max Drawdown (1Y) Largest decline over 1 year	-28.29%	-33.91%	+5.62%
Max Drawdown (3Y) Largest decline over 3 years	-51.25%	-33.91%	-17.34%
Max Drawdown (5Y) Largest decline over 5 years	-51.25%	-37.15%	-14.10%
Max Drawdown (10Y) Largest decline over 10 years	-74.15%	-37.15%	-37.00%
Current Drawdown Current decline from peak	-25.44%	-18.07%	-7.37%
Average Drawdown Average peak-to-trough decline	-51.43%	-21.78%	-29.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.25%	15.90%	-5.65%

Volatility

TEX vs. MSFT - Volatility Comparison

Terex Corporation (TEX) has a higher volatility of 14.48% compared to Microsoft Corporation (MSFT) at 9.31%. This indicates that TEX'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.

Volatility by Period

	TEX	MSFT	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.48%	9.31%	+5.17%
Volatility (6M) Calculated over the trailing 6-month period	34.66%	22.14%	+12.52%
Volatility (1Y) Calculated over the trailing 1-year period	47.19%	24.92%	+22.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	44.13%	26.59%	+17.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	45.16%	27.03%	+18.13%

Dividends

TEX vs. MSFT - Dividend Comparison

TEX's dividend yield for the trailing twelve months is around 1.11%, more than MSFT's 0.81% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MSFT Microsoft Corporation	0.81%	0.70%	0.73%	0.74%	1.06%	0.68%	0.94%	1.20%	1.69%	1.86%	2.37%	2.33%
TEX Terex Corporation	1.11%	1.27%	1.47%	1.11%	1.22%	1.09%	0.34%	1.48%	1.45%	0.66%	0.89%	1.30%

Financials

TEX vs. MSFT - Profitability Comparison

The chart below illustrates the profitability comparison between Terex Corporation and Microsoft Corporation over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

TEX - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Terex Corporation reported a gross profit of 206.00M and revenue of 1.73B. Therefore, the gross margin over that period was 11.9%.

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%.

TEX - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Terex Corporation reported an operating income of -82.00M and revenue of 1.73B, resulting in an operating margin of -4.7%.

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%.

TEX - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Terex Corporation reported a net income of -89.00M and revenue of 1.73B, resulting in a net margin of -5.1%.

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

Can I hold both TEX and MSFT in my portfolio?

TEX and MSFT have a correlation of 0.05, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TEX or MSFT?

TEX has higher volatility (14.48%) compared to MSFT (9.31%). In terms of maximum drawdown, TEX dropped -91.96% vs MSFT's -69.38%.

Which has better risk-adjusted returns?

TEX currently has the higher Sharpe Ratio (0.88 vs -0.15), 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.