WallStSmart

Daktronics Inc (DAKT)vsMicrosoft Corporation (MSFT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 37956% more annual revenue ($305.45B vs $802.65M). MSFT leads profitability with a 39.0% profit margin vs 3.4%. DAKT appears more attractively valued with a PEG of 0.56. MSFT earns a higher WallStSmart Score of 74/100 (B).

DAKT

Buy

60

out of 100

Grade: C+

Growth: 8.0Profit: 5.0Value: 6.0Quality: 8.0
Piotroski: 3/9Altman Z: 3.03

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

DAKTUndervalued (+12.1%)

Margin of Safety

+12.1%

Fair Value

$29.77

Current Price

$19.66

$10.11 discount

UndervaluedFair: $29.77Overvalued
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

DAKT5 strengths · Avg: 9.0/10
EPS GrowthGrowth
57.1%10/10

Earnings expanding 57.1% YoY

Altman Z-ScoreHealth
3.0310/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.109/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.568/10

Growing faster than its price suggests

Revenue GrowthGrowth
21.6%8/10

Revenue surging 21.6% 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

DAKT4 concerns · Avg: 3.3/10
P/E RatioValuation
36.3x4/10

Premium valuation, high expectations priced in

Market CapQuality
$973.49M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
3.4%3/10

3.4% margin — thin

Operating MarginProfitability
1.1%3/10

Operating margin of 1.1%

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 : DAKT

The strongest argument for DAKT centers on EPS Growth, Altman Z-Score, Debt/Equity. Revenue growth of 21.6% demonstrates continued momentum. PEG of 0.56 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 39.0% and operating margin at 47.1%. Revenue growth of 16.7% demonstrates continued momentum.

Bear Case : DAKT

The primary concerns for DAKT are P/E Ratio, Market Cap, Profit Margin. Thin 3.4% margins leave little buffer for downturns.

Bear Case : MSFT

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

Key Dynamics to Monitor

DAKT carries more volatility with a beta of 1.77 — expect wider price swings.

DAKT is growing revenue faster at 21.6% — sustainability is the question.

MSFT generates stronger free cash flow (15.8B), providing more financial flexibility.

Monitor ELECTRONIC COMPONENTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MSFT scores higher overall (74/100 vs 60/100), backed by strong 39.0% margins and 16.7% 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.

Daktronics Inc

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

Daktronics, Inc. designs, manufactures, markets and sells electronic display systems and related products worldwide. The company is headquartered in Brookings, South Dakota.

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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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