Sifting through countless of stocks in the Software industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Microsoft Corporation or Unity Software Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Microsoft Corporation and Unity Software Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Microsoft Corporation and Unity Software Inc.

Microsoft Corporation, a technology company, develops and supports a portfolio of technology solutions for individuals and businesses worldwide. Its products include operating systems, server applications, business solution applications, software development tools, desktop and server management tools, and video games; and devices, such as PCs, tablets, gaming and entertainment consoles, other intelligent devices, and related accessories. The company's Productivity and Business Processes segment offers Microsoft 365 Commercial, Enterprise Mobility + Security, Power BI, Exchange, SharePoint, Microsoft Teams, Microsoft 365 Security and Compliance, Microsoft 365 Copilot, and Windows Commercial on-premises and Office licensed on-premises. This segment also provides Microsoft 365 Consumer products and cloud services; LinkedIn, including talent solutions, marketing solutions, subscriptions, and sales solutions; Dynamics 365, a set of cloud-based applications; and on-premises ERP and CRM applications. Its Intelligent Cloud segment offers server products and cloud services; cloud and AI consumption-based services, GitHub cloud services, health and life sciences cloud services, as well as virtual desktop offerings, and other cloud services; SQL Server, Windows Server, Visual Studio, System Center, and related client access licenses; and enterprise support services, industry solutions, Microsoft partner network, and learning experience. The company's More Personal Computing segment provides Windows OEM licensing and devices comprising Surface and PC accessories; XBOX hardware, and XBOX first- and third-party content and services; XBOX Game Pass and other subscriptions; XBOX Cloud Gaming, advertising, and other cloud services; and search advertising consisting of Bing, Copilot, Microsoft News, Microsoft Edge, and third-party affiliates. It sells its products through partners and retail networks. The company was founded in 1975 and is headquartered in Redmond, Washington.

Unity Software Inc. operates a platform to develop, deploy, and grow games and interactive experiences for mobile phones, PCs, consoles, and extended reality devices in the United States, China, Hong Kong, Taiwan, Europe, the Middle East, Africa, the Asia Pacific, Canada, and Latin America. The company's platform offers artificial intelligence solutions that support developers through the entire development lifecycle, which includes prototyping, live service operation, user acquisition, and monetization. It also provides Create Solutions, a set of tools and services used to build, ship, and run real-time 2D and 3D content; and Grow Solutions, which allows customers to grow and engage their user base and monetize their content. In addition, the company offers enterprise support and consumption services; professional services, including consulting, platform integration, training, and custom application and workflow development services; and advertising and game publishing services. It provides its solutions directly through its online store, field sales operations, independent distributors, and resellers. The company serves enterprises, mid-market companies, government, and non-profit institutions; mid-sized, small, and independent businesses; and individuals from various industries. Unity Software Inc. was founded in 2004 and is headquartered in San Francisco, California.

Latest Software and Microsoft Corporation, Unity Software Inc. Stock News

As of September 2, 2026, Microsoft Corporation had a $3.7 trillion market capitalization, compared to the Software median of $1.0 million. Microsoft Corporation’s stock is up 5.5% in 2026, up 1% in the previous five trading days and down 1.64% in the past year.

Currently, Microsoft Corporation’s price-earnings ratio is 27.7. Microsoft Corporation’s trailing 12-month revenue is $331.8 billion with a 40.3% net profit margin. Year-over-year quarterly sales growth most recently was 17.7%. Analysts expect adjusted earnings to reach $19.753 per share for the current fiscal year. Microsoft Corporation currently has a 0.7% dividend yield.

As of September 2, 2026, Unity Software Inc. had a $17.9 billion market cap, putting it in the 85th percentile of all stocks. Unity Software Inc.’s stock is down 4.7% in 2026, down 3.2% in the previous five trading days and up 3.43% in the past year.

Currently, Unity Software Inc. does not have a price-earnings ratio. Unity Software Inc.’s trailing 12-month revenue is $2.0 billion with a -29.0% net profit margin. Year-over-year quarterly sales growth most recently was 24.0%. Analysts expect adjusted earnings to reach $1.211 per share for the current fiscal year. Unity Software Inc. does not currently pay a dividend.

How We Compare Microsoft Corporation and Unity Software Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Microsoft Corporation and Unity Software Inc.’s stock grades to see how they measure up against one another.

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Microsoft Corporation and Unity Software Inc. Stock Value Grades

Company	Ticker	Value
Microsoft Corporation	MSFT	F
Unity Software Inc.	U	F

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Microsoft Corporation has a Value Score of 12, which is Ultra Expensive. Unity Software Inc. has a Value Score of 7, which is Ultra Expensive.

The Value Stock Winner: No Clear Winner

Neither Microsoft Corporation or Unity Software Inc. has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Microsoft Corporation or Unity Software Inc. is the better investment when it comes to value.

Microsoft Corporation and Unity Software Inc. Growth Grades

Company	Ticker	Growth
Microsoft Corporation	MSFT	A
Unity Software Inc.	U	D

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Microsoft Corporation has a Growth Score of 89, which is Very Strong. Unity Software Inc. has a Growth Score of 27, which is Weak.

The Growth Grade Winner: Microsoft Corporation

As you can clearly see from the Growth Grade breakdown above, Microsoft Corporation has a more attractive growth grade than Unity Software Inc.. For investors who focus solely on how a company is growing relative to other companies in the same industry, Microsoft Corporation could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Microsoft Corporation and Unity Software Inc.’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
Microsoft Corporation	MSFT	B
Unity Software Inc.	U	B

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Microsoft Corporation has a Earnings Estimate Score of 67, which is Positive. Unity Software Inc. has a Earnings Estimate Score of 61, which is Positive.

The Earnings Estimate Revisions Grade Winner: It’s a Tie!

Looking at the Earnings Estimate Revisions Grade breakdown above, both Microsoft Corporation and Unity Software Inc. have a grade of B. For those focusing solely on a company’s estimate revisions, other financial metrics will need to be evaluated to determine whether Microsoft Corporation or Unity Software Inc. is a better fit.

Other Microsoft Corporation and Unity Software Inc. Grades

In addition to Estimate Revisions, Value and Growth, A+ Investor also provides grades for Momentum and Quality.

Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Microsoft Corporation and Unity Software Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Microsoft Corporation or Unity Software Inc. Stock?

Overall, Microsoft Corporation stock has a Value Score of 12, Growth Score of 89 and Estimate Revisions Score of 67.

Unity Software Inc. stock has a Value Score of 7, Growth Score of 27 and Estimate Revisions Score of 61.

Comparing Microsoft Corporation and Unity Software Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.