WallStSmart

Broadridge Financial Solutions Inc (BR)vsMicrosoft Corporation (MSFT)

VS
⚡

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 4485% more annual revenue ($346.44B vs $7.56B). MSFT leads profitability with a 41.2% profit margin vs 14.0%. MSFT appears more attractively valued with a PEG of 1.70. MSFT earns a higher WallStSmart Score of 72/100 (B).

BR

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 7.5Value: 4.0Quality: 6.0
Piotroski: 6/9Altman Z: 2.35

MSFT

Strong Buy

72

out of 100

Grade: B

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BRSignificantly Overvalued (-16.1%)

Margin of Safety

-16.1%

Fair Value

$144.25

Current Price

$191.50

$47.25 premium

UndervaluedFair: $144.25Overvalued

Intrinsic value data unavailable for MSFT.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BR1 strengths · Avg: 10.0/10
Return on EquityProfitability
40.3%10/10

Every $100 of equity generates 40 in profit

MSFT6 strengths · Avg: 9.8/10
Market CapQuality
$3.88T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
30.3%10/10

Every $100 of equity generates 30 in profit

Profit MarginProfitability
41.2%10/10

Keeps 41 of every $100 in revenue as profit

Operating MarginProfitability
49.8%10/10

Strong operational efficiency at 49.8%

Free Cash FlowQuality
$18.63B10/10

Generating 18.6B in free cash flow

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

Areas to Watch

BR4 concerns · Avg: 3.3/10
PEG RatioValuation
1.964/10

Expensive relative to growth rate

Price/BookValuation
8.3x4/10

Trading at 8.3x book value

Debt/EquityHealth
1.383/10

Elevated debt levels

EPS GrowthGrowth
-40.7%2/10

Earnings declined 40.7%

MSFT3 concerns · Avg: 4.0/10
PEG RatioValuation
1.704/10

Expensive relative to growth rate

P/E RatioValuation
27.2x4/10

Moderate valuation

Price/BookValuation
8.3x4/10

Trading at 8.3x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : BR

The strongest argument for BR centers on Return on Equity.

Bull Case : MSFT

The strongest argument for MSFT centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 41.2% and operating margin at 49.8%. Revenue growth of 18.8% demonstrates continued momentum.

Bear Case : BR

The primary concerns for BR are PEG Ratio, Price/Book, Debt/Equity.

Bear Case : MSFT

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

Key Dynamics to Monitor

BR profiles as a value stock while MSFT is a growth play — different risk/reward profiles.

MSFT carries more volatility with a beta of 1.10 — expect wider price swings.

MSFT is growing revenue faster at 18.8% — sustainability is the question.

MSFT generates stronger free cash flow (18.6B), providing more financial flexibility.

Bottom Line

MSFT scores higher overall (72/100 vs 54/100), backed by strong 41.2% margins and 18.8% revenue growth. Both earn "Strong Buy" and "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.

Broadridge Financial Solutions Inc

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Broadridge Financial Solutions is a public corporate services company founded in 2007 as a spin-off from Automatic Data Processing. The main business of Broadridge is as a service provider supplying public companies with proxy statements, annual reports and other financial documents, and shareholder communications solutions, such as virtual annual meetings.

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 →

Want to dig deeper into these stocks?