Arrow Electronics Inc (ARW)vsMicrosoft Corporation (MSFT)
ARW
Arrow Electronics Inc
$187.83
+0.99%
TECHNOLOGY · Cap: $9.40B
MSFT
Microsoft Corporation
$407.78
-3.93%
TECHNOLOGY · Cap: $3.03T
Smart Verdict
WallStSmart Research — data-driven comparison
Microsoft Corporation generates 932% more annual revenue ($318.27B vs $30.85B). MSFT leads profitability with a 39.3% profit margin vs 1.9%. ARW appears more attractively valued with a PEG of 0.95. MSFT earns a higher WallStSmart Score of 72/100 (B).
ARW
Strong Buy69
out of 100
Grade: B-
MSFT
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+67.9%
Fair Value
$491.31
Current Price
$187.83
$303.48 discount
Margin of Safety
-70.9%
Fair Value
$238.57
Current Price
$407.78
$169.21 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 100.5% YoY
Growing faster than its price suggests
Attractively priced relative to earnings
Revenue surging 20.1% year-over-year
Mega-cap, among the largest globally
Every $100 of equity generates 34 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
Grey zone — moderate risk
1.9% margin — thin
Operating margin of 3.7%
Weak financial health signals
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull Case : ARW
The strongest argument for ARW centers on Price/Book, EPS Growth, PEG Ratio. Revenue growth of 20.1% demonstrates continued momentum. PEG of 0.95 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 39.3% and operating margin at 46.3%. Revenue growth of 18.3% demonstrates continued momentum.
Bear Case : ARW
The primary concerns for ARW are Altman Z-Score, Profit Margin, Operating Margin. Thin 1.9% margins leave little buffer for downturns.
Bear Case : MSFT
No major red flags identified for MSFT, but monitor valuation.
Key Dynamics to Monitor
MSFT carries more volatility with a beta of 1.11 — expect wider price swings.
ARW is growing revenue faster at 20.1% — sustainability is the question.
MSFT generates stronger free cash flow (15.8B), providing more financial flexibility.
Monitor ELECTRONICS & COMPUTER DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MSFT scores higher overall (72/100 vs 69/100), backed by strong 39.3% margins and 18.3% revenue growth. ARW offers better value entry with a 67.9% margin of safety. 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.
Arrow Electronics Inc
TECHNOLOGY · ELECTRONICS & COMPUTER DISTRIBUTION · USA
Arrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Centennial, Colorado.
Visit Website →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.
Visit Website →Compare with Other ELECTRONICS & COMPUTER DISTRIBUTION Stocks
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