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, BILL Holdings or 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, BILL Holdings and Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Microsoft Corporation, BILL Holdings and 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.

BILL Holdings, Inc. provides financial operations platform for small and midsize businesses worldwide. The company offers cloud-based payments, accounts payable, accounts receivable, and spend and expense management solutions. It also provides BILL Spend and Expense, a spend and expense management suite that provides a solution for businesses to have charge cards, build and monitor budgets, manage payments, and eliminate the need for manual expense reports. In addition, the company offers onboarding implementation support, and ongoing support and training services. Additionally, it provides payment services, including ACH, card, real-time, and cross-border payments, as well as checks and pay by card services; lending and deposit products; and value-added services. The company’s artificial intelligence enabled financial software platform provides connections between suppliers and clients. It serves accounting firms, financial institutions, and software provider companies. The company was formerly known as Bill.com Holdings, Inc. and changed its name to BILL Holdings, Inc. in February 2023. BILL Holdings, Inc. was incorporated in 2006 and is headquartered in San Jose, California.

Latest Software and Microsoft Corporation, BILL Holdings, Inc. Stock News

As of September 1, 2026, Microsoft Corporation had a $3.7 trillion market capitalization, compared to the Software median of $1.1 million. Microsoft Corporation’s stock is up 2.8% in 2026, up 0.1% in the previous five trading days and down 1.12% in the past year.

Currently, Microsoft Corporation’s price-earnings ratio is 27.9. 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 1, 2026, BILL Holdings, Inc. had a $4.1 billion market cap, putting it in the 64th percentile of all stocks. BILL Holdings, Inc.’s stock is down 12.3% in 2026, down 0.6% in the previous five trading days and up 2.59% in the past year.

Currently, BILL Holdings, Inc. does not have a price-earnings ratio. BILL Holdings, Inc.’s trailing 12-month revenue is $1.7 billion with a -0.7% net profit margin. Year-over-year quarterly sales growth most recently was 13.8%. Analysts expect adjusted earnings to reach $3.736 per share for the current fiscal year. BILL Holdings, Inc. does not currently pay a dividend.

How We Compare Microsoft Corporation, BILL Holdings and 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, BILL Holdings and Inc.’s stock grades to see how they measure up against one another.

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Microsoft Corporation, BILL Holdings and Inc.’s Quality Grades

Company	Ticker	Quality
Microsoft Corporation	MSFT	A
BILL Holdings, Inc.	BILL	D

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks 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 the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Microsoft Corporation has a Quality Score of 90, which is Very Strong. BILL Holdings, Inc. has a Quality Score of 40, which is Weak.

The Quality Grade Winner: Microsoft Corporation

As you can clearly see from the Quality Grade breakdown above, Microsoft Corporation has a better overall quality grade than BILL Holdings, Inc.. For investors who are looking for companies with higher quality than others in the same industry, Microsoft Corporation could be a good stock to add to their portfolios. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Microsoft Corporation, BILL Holdings and Inc.’s Momentum Grades

Company	Ticker	Momentum
Microsoft Corporation	MSFT	C
BILL Holdings, Inc.	BILL	B

Momentum grades help to 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. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Microsoft Corporation has a Momentum Score of 53, which is Average. BILL Holdings, Inc. has a Momentum Score of 72, which is Strong.

The Momentum Grade Winner: BILL Holdings, Inc.

As you can clearly see from the Momentum Grade breakdown above, BILL Holdings, Inc. is considered to have stronger momentum compared to Microsoft Corporation. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, BILL Holdings, Inc. could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Microsoft Corporation, BILL Holdings and Inc.’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
Microsoft Corporation	MSFT	B
BILL Holdings, Inc.	BILL	A

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. BILL Holdings, Inc. has a Earnings Estimate Score of 87, which is Very Positive.

The Earnings Estimate Revisions Grade Winner: BILL Holdings, Inc.

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, BILL Holdings, Inc. has a better Earnings Estimate Revisions Grade than Microsoft Corporation. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, BILL Holdings, Inc. could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Other Microsoft Corporation, BILL Holdings and Inc. Grades

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

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

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.

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, BILL Holdings and Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Microsoft Corporation, BILL Holdings or Inc. Stock?

Overall, Microsoft Corporation stock has a Momentum Score of 53, Estimate Revisions Score of 67 and Quality Score of 90.

BILL Holdings, Inc. stock has a Momentum Score of 72, Estimate Revisions Score of 87 and Quality Score of 40.

Comparing Microsoft Corporation, BILL Holdings and 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.