Analog Devices Inc (ADI)vsMicrosoft Corporation (MSFT)
ADI
Analog Devices Inc
$353.37
-3.41%
TECHNOLOGY · Cap: $181.42B
MSFT
Microsoft Corporation
$390.54
-0.71%
TECHNOLOGY · Cap: $2.90T
Smart Verdict
WallStSmart Research — data-driven comparison
Microsoft Corporation generates 2398% more annual revenue ($318.27B vs $12.74B). MSFT leads profitability with a 39.3% profit margin vs 26.0%. ADI appears more attractively valued with a PEG of 0.70. MSFT earns a higher WallStSmart Score of 72/100 (B).
ADI
Strong Buy72
out of 100
Grade: B
MSFT
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ADI.
Margin of Safety
-82.9%
Fair Value
$215.02
Current Price
$390.54
$175.52 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 38.1%
Revenue surging 37.2% year-over-year
Earnings expanding 110.5% YoY
Large-cap with strong market position
Keeps 26 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Mega-cap, among the largest globally
Every $100 of equity generates 30 in profit
Keeps 39 of every $100 in revenue as profit
Strong operational efficiency at 46.3%
Generating 15.8B in free cash flow
18.3% revenue growth
Areas to Watch
Premium valuation, high expectations priced in
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull Case : ADI
The strongest argument for ADI centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 26.0% and operating margin at 38.1%. Revenue growth of 37.2% demonstrates continued momentum.
Bull Case : MSFT
The strongest argument for MSFT centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 39.3% and operating margin at 46.3%. Revenue growth of 18.3% demonstrates continued momentum.
Bear Case : ADI
The primary concerns for ADI are P/E Ratio. A P/E of 56.8x leaves little room for execution misses.
Bear Case : MSFT
No major red flags identified for MSFT, but monitor valuation.
Key Dynamics to Monitor
ADI carries more volatility with a beta of 1.19 — expect wider price swings.
ADI is growing revenue faster at 37.2% — sustainability is the question.
MSFT generates stronger free cash flow (15.8B), providing more financial flexibility.
Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ADI scores higher overall (72/100 vs 72/100), backed by strong 26.0% margins and 37.2% revenue growth. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Analog Devices Inc
TECHNOLOGY · SEMICONDUCTORS · USA
Analog Devices, Inc. (ADI), also known simply as Analog, is an American multinational semiconductor company specializing in data conversion, signal processing and power management technology, headquartered in Wilmington, Massachusetts.
Microsoft Corporation
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Microsoft Corporation is an American multinational technology company which produces computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue; it was the world's largest software maker by revenue as of 2016. It is considered one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Amazon, and Facebook.
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