WallStSmart

Aehr Test Systems (AEHR)vsMicrosoft Corporation (MSFT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 663565% more annual revenue ($331.84B vs $50.00M). MSFT leads profitability with a 40.3% profit margin vs -14.2%. AEHR appears more attractively valued with a PEG of 0.90. MSFT earns a higher WallStSmart Score of 72/100 (B).

AEHR

Hold

38

out of 100

Grade: F

Growth: 4.7Profit: 2.0Value: 6.0Quality: 7.3
Piotroski: 2/9

MSFT

Strong Buy

72

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 5.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.68

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEHR3 strengths · Avg: 9.3/10
Revenue GrowthGrowth
33.7%10/10

Revenue surging 33.7% year-over-year

Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.908/10

Growing faster than its price suggests

MSFT6 strengths · Avg: 9.8/10
Market CapQuality
$3.68T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
30.2%10/10

Every $100 of equity generates 30 in profit

Profit MarginProfitability
40.3%10/10

Keeps 40 of every $100 in revenue as profit

Operating MarginProfitability
45.1%10/10

Strong operational efficiency at 45.1%

Free Cash FlowQuality
$19.64B10/10

Generating 19.6B in free cash flow

Debt/EquityHealth
0.299/10

Conservative balance sheet, low leverage

Areas to Watch

AEHR4 concerns · Avg: 2.8/10
Price/BookValuation
14.0x4/10

Trading at 14.0x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-8.2%2/10

ROE of -8.2% — below average capital efficiency

EPS GrowthGrowth
-87.5%2/10

Earnings declined 87.5%

MSFT3 concerns · Avg: 4.0/10
PEG RatioValuation
1.604/10

Expensive relative to growth rate

P/E RatioValuation
27.4x4/10

Moderate valuation

Price/BookValuation
8.3x4/10

Trading at 8.3x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : AEHR

The strongest argument for AEHR centers on Revenue Growth, Debt/Equity, PEG Ratio. Revenue growth of 33.7% demonstrates continued momentum. PEG of 0.90 suggests the stock is reasonably priced for its growth.

Bull Case : MSFT

The strongest argument for MSFT centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 40.3% and operating margin at 45.1%. Revenue growth of 17.7% demonstrates continued momentum.

Bear Case : AEHR

The primary concerns for AEHR are Price/Book, Piotroski F-Score, Return on Equity.

Bear Case : MSFT

The primary concerns for MSFT are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

AEHR profiles as a hypergrowth stock while MSFT is a growth play — different risk/reward profiles.

AEHR carries more volatility with a beta of 3.07 — expect wider price swings.

AEHR is growing revenue faster at 33.7% — sustainability is the question.

MSFT generates stronger free cash flow (19.6B), providing more financial flexibility.

Bottom Line

MSFT scores higher overall (72/100 vs 38/100), backed by strong 40.3% margins and 17.7% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Aehr Test Systems

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

Aehr Test Systems primarily designs, designs, manufactures and sells test and burn equipment for use in the semiconductor industry in the United States, Asia and Europe. The company is headquartered in Fremont, California.

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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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