WallStSmart

Canaan Inc (CAN)vsMicrosoft Corporation (MSFT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 57561% more annual revenue ($305.45B vs $529.74M). MSFT leads profitability with a 39.0% profit margin vs -39.7%. MSFT earns a higher WallStSmart Score of 74/100 (B).

CAN

Hold

42

out of 100

Grade: D

Growth: 4.7Profit: 2.0Value: 5.0Quality: 5.0

MSFT

Strong Buy

74

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 4.7Quality: 6.5
Piotroski: 4/9Altman Z: 2.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CAN.

MSFTSignificantly Overvalued (-85.3%)

Margin of Safety

-85.3%

Fair Value

$229.04

Current Price

$424.46

$195.42 premium

UndervaluedFair: $229.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAN2 strengths · Avg: 10.0/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
121.1%10/10

Revenue surging 121.1% year-over-year

MSFT6 strengths · Avg: 10.0/10
Market CapQuality
$3.16T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.4%10/10

Every $100 of equity generates 34 in profit

Profit MarginProfitability
39.0%10/10

Keeps 39 of every $100 in revenue as profit

Operating MarginProfitability
47.1%10/10

Strong operational efficiency at 47.1%

EPS GrowthGrowth
59.8%10/10

Earnings expanding 59.8% YoY

Free Cash FlowQuality
$15.80B10/10

Generating 15.8B in free cash flow

Areas to Watch

CAN4 concerns · Avg: 2.0/10
Market CapQuality
$410.03M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-59.8%2/10

ROE of -59.8% — below average capital efficiency

EPS GrowthGrowth
-91.6%2/10

Earnings declined 91.6%

Profit MarginProfitability
-39.7%1/10

Currently unprofitable

MSFT2 concerns · Avg: 4.0/10
P/E RatioValuation
26.6x4/10

Moderate valuation

Price/BookValuation
8.1x4/10

Trading at 8.1x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : CAN

The strongest argument for CAN centers on Price/Book, Revenue Growth. Revenue growth of 121.1% 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 39.0% and operating margin at 47.1%. Revenue growth of 16.7% demonstrates continued momentum.

Bear Case : CAN

The primary concerns for CAN are Market Cap, Return on Equity, EPS Growth.

Bear Case : MSFT

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

Key Dynamics to Monitor

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

CAN carries more volatility with a beta of 2.47 — expect wider price swings.

CAN is growing revenue faster at 121.1% — sustainability is the question.

Monitor COMPUTER HARDWARE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MSFT scores higher overall (74/100 vs 42/100), backed by strong 39.0% margins and 16.7% 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.

Canaan Inc

TECHNOLOGY · COMPUTER HARDWARE · China

Canaan Inc. is engaged in the research, design and sale of IC end system products by integrating bitcoin mining IC products and related components mainly in the People's Republic of China. The company is headquartered in Hangzhou, the People's Republic of China.

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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