MSFT vs NTDOY: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of September 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.

Reading it: NTDOY 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.

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. MSFT and NTDOY 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 MSFT and NTDOY 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.

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.

Full MSFT guide

Nintendo (NTDOY) is one of the world's leading video game companies, built on a rare combination of hardware and the software and characters that run on it. It designs and sells dedicated game consoles, most recently the Switch 2 launched in June 2025, and publishes first-party games featuring some of the most valuable franchises in entertainment, including Mario, The Legend of Zelda, Pokemon, Animal Crossing, Splatoon, and Donkey Kong. Unlike pure software publishers, Nintendo controls both the platform and the biggest games on it, which lets it capture hardware sales, high-margin software, subscriptions through Nintendo Switch Online, and a growing stream of licensing, mobile, movies, and theme parks around its intellectual property. The business moves in console cycles: revenue and profit surge when a successful new system launches and its software library builds, then soften as the platform ages before the next machine arrives. For US investors, Nintendo trades as an over-the-counter American depositary receipt (NTDOY) that represents shares of the Japan-listed parent, so it carries yen currency exposure and thinner liquidity than a primary US listing. It is widely viewed as a way to own a durable stable of gaming IP alongside the swings of the hardware cycle.

Full NTDOY guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• MSFT drivers: AI as the platform; Closing the gap with AWS in cloud.
• NTDOY drivers: Irreplaceable gaming intellectual property; The Switch 2 hardware cycle.

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: 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. For NTDOY, nintendo is a hit-driven, cyclical business.

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 MSFT if you believe its drivers more; NTDOY 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 MSFT and NTDOY guides.

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.

NTDOY. Nintendo reports in Japanese yen on a fiscal year ending March 31, and its earnings are cyclical, jumping when a successful console launches and its software library builds, then easing as the platform ages. The Switch 2 launch in June 2025 drove a large revenue increase in the year ended March 2026, and the company subsequently guided to lower Switch 2 unit sales for the following year, a typical pattern after a launch surge. Because NTDOY is an ADR, US-quoted figures are affected by the yen-dollar exchange rate as well as the underlying business. Figures are approximate, reported in yen, and can move with hardware timing and currency; verify current numbers before relying on them.

Headline figures (approximate, early 2026): 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; NTDOY shows fiscal year end March 31 (Japan-listed parent), revenue (fy ended march 2026) ~2.3 trillion yen, up sharply on the Switch 2 launch, switch 2 units (first year) ~19.9 million, launched June 2025, fy2027 switch 2 guidance ~16.5 million units (company forecast).

MSFT and NTDOY 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 MSFT and NTDOY exposure against your real portfolio. It is not an investment adviser.