DOCS vs MSFT: How Doximity and Microsoft Compare (2026)
Last updated August 2026
Short answer
MSFT is the larger of the two ($3.45T market cap): the incumbent the market prices for continued execution (19.96x forward earnings, beta 1.13). DOCS is the smaller challenger ($4.88B), cheaper on forward earnings (17.34x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
DOCS vs MSFT: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | DOCS | MSFT | What it tells you |
|---|---|---|---|
| Market cap | $4.88B | $3.45T | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 17.34 | 19.96 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 32.62 | 25.90 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 1.21 | 1.13 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 17% of range | 56% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 5.28 | 7.80 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: DOCS is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how DOCS and MSFT affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. DOCS and MSFT share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined DOCS and MSFT exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Doximity (DOCS) do?
Doximity, Inc. (NYSE: DOCS) operates a verified online network for U.S. medical professionals, with membership the company says covers more than 85% of U.S. physicians. Doctors use it free: profiles and colleague search, a specialty-tailored newsfeed, secure messaging, a voice and video dialer, digital fax, the Amion on-call scheduling tool, telehealth visits, and a Clinical AI Suite that includes Ask (formerly DoxGPT), the Scribe ambient note taker and the PeerCheck reference feature. Revenue comes from the other side of the network: Marketing, Hiring and Workflow Solutions sold mainly to pharmaceutical manufacturers and health systems. The company was founded in 2010, is headquartered in San Francisco with roughly 880 employees, and closes its fiscal year on March 31, so figures labeled fiscal 2026 cover April 2025 through March 2026.
What does Microsoft (MSFT) do?
Microsoft (MSFT) is one of the largest and most diversified technology companies in the world, operating across three reporting segments. Productivity and Business Processes includes Microsoft 365 (Office, Teams, Dynamics 365) and LinkedIn. Intelligent Cloud covers Azure, GitHub, server products, and enterprise services. More Personal Computing spans Windows, gaming (Xbox plus the acquired Activision Blizzard), Surface devices, and search via Bing. Azure is the second-largest cloud computing platform in the world behind AWS, and Microsoft 365 is the dominant productivity suite for businesses globally. AI is woven across all of it through the Copilot product line and a deep partnership with OpenAI, in which Microsoft is both the primary cloud provider and a major investor. The company was founded in 1975 by Bill Gates and Paul Allen, is headquartered in Redmond, Washington, and is led by CEO Satya Nadella (since 2014). Microsoft is consistently the largest or one of the two largest publicly traded US companies by market cap, with enormous recurring cash flow and a multi-decade dividend-growth streak.
DOCS vs MSFT: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- DOCS drivers: Clinical AI moving from demo to daily use; Pharma spend and the large-customer cohort.
- MSFT drivers: AI as the platform; Closing the gap with AWS in cloud.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Revenue is concentrated: 127 customers were ~83% of trailing revenue, and most are pharmaceutical manufacturers whose promotional budgets move with drug launches, patent expirations and pricing policy. For MSFT, the largest open question is the return on AI capex: Microsoft is spending more than $50 billion a year on AI and cloud infrastructure, and if enterprise adoption is slower than expected the payback stretches out.
DOCS or MSFT: which should you pick?
Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick DOCS if you believe its drivers more; MSFT if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the DOCS and MSFT guides.
DOCS vs MSFT: the full fundamentals
DOCS. At the ~$27.40 close on August 7, 2026, DOCS traded at roughly ~7.5x trailing revenue and about ~22x trailing GAAP earnings, with enterprise value near ~$4.25B, or roughly ~13x the midpoint of fiscal 2027 adjusted EBITDA guidance. Because the fiscal year ends March 31, the newest reported quarter is Q1 fiscal 2027 (the three months ended June 30, 2026) and the most recent full year is fiscal 2026 (April 2025 through March 2026). GAAP net income in that June quarter fell to ~$24.3M from ~$53.3M a year earlier on higher stock compensation and a larger tax provision, so trailing GAAP earnings are declining faster than revenue and the reported P/E is a weak comparison point right now.
MSFT. For comparison, the S&P 500 trades at roughly 22x earnings on average. Microsoft's premium reflects its combination of growth, durability, margins, and AI exposure through Azure and OpenAI. It is not the highest P/E in mega-cap tech; NVIDIA, for example, trades at roughly 50x. The premium is justified as long as Azure keeps growing double digits and the AI capex earns a return; multiple compression risk rises if cloud growth slows. All figures are approximate as of early 2026 and refresh quarterly; verify against Microsoft's investor relations page or your broker.
Headline figures (approximate, August 2026): DOCS shows revenue (ttm through june 2026) ~$656M, revenue (fiscal 2026, year ended march 31, 2026) ~$645M, up ~13% year over year, revenue (q1 fiscal 2027, quarter ended june 30, 2026) ~$157M, up ~7% year over year, fiscal 2027 revenue guidance ~$671M to ~$681M; MSFT shows revenue (fy2025 ending june) ~$245 billion, growing ~15% year over year, operating margin ~45%, among the highest of any company at Microsoft's scale, net income ~$95 billion, eps (ttm) ~$12.80.
The bottom line: DOCS vs MSFT
DOCS and MSFT are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined DOCS and MSFT exposure against your real portfolio. It is not an investment adviser.
Wondering how DOCS or MSFT fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Doximity with AI
Connect the broker you already use and ask Walnut's AI how DOCS fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between DOCS and MSFT?
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Doximity, Inc. Microsoft (MSFT) is one of the largest and most diversified technology companies in the world, operating across three reporting segments. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is DOCS or MSFT the better stock?
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Neither is universally better. MSFT is the larger incumbent; DOCS is the smaller challenger and looks cheaper on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, DOCS or MSFT?
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On forward P/E (as of August 2026), DOCS trades at 17.34x and MSFT at 19.96x, so DOCS is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both DOCS and MSFT?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of DOCS vs MSFT?
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DOCS: Revenue is concentrated: 127 customers were ~83% of trailing revenue, and most are pharmaceutical manufacturers whose promotional budgets move with drug launches, patent expirations and pricing policy. Net revenue retention of 107%, down from 118%, shows existing customers expanding far more slowly than they were a year ago. AI is a cost line before it is a revenue line here, with gross margin, adjusted EBITDA margin and stock compensation all moving the wrong way in the June 2026 quarter, and OpenEvidence, a free ad-supported clinical AI reference used by many of the same physicians, competes directly and has sued Doximity in federal court alleging unauthorized access to its platform (Doximity has filed counterclaims including false advertising and defamation). The securities class action that followed the fiscal 2024 guidance reset was settled for $31 million funded by insurance carriers, with final court approval on June 11, 2026 and the case terminated on June 23, 2026, but related shareholder derivative suits in California and Delaware remain pending. The stock has also been unstable in a way that is easy to underestimate: a ~$17.15 to ~$76.51 range over the past year, and an August 7, 2026 session that opened near ~$39 and closed near ~$27.40 on roughly six times normal volume. MSFT: The largest open question is the return on AI capex: Microsoft is spending more than $50 billion a year on AI and cloud infrastructure, and if enterprise adoption is slower than expected the payback stretches out. Antitrust pressure is real, with the FTC and EU both active on Microsoft's stack over the years. The concentrated dependence on OpenAI as the AI partner of choice cuts both ways, since OpenAI is also, increasingly, a competitor. Cloud is competitive (AWS leads, Google Cloud and Oracle are investing heavily), and the valuation, while not the highest in mega-cap tech, embeds confidence in durable double-digit growth that could compress if Azure decelerates.
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Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell DOCS or MSFT; figures are approximate and dated (as of August 2026). Verify current data before investing.