WallStSmart

Endava Ltd (DAVA)vsMicrosoft Corporation (MSFT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 43643% more annual revenue ($318.27B vs $727.60M). MSFT leads profitability with a 39.3% profit margin vs -56.1%. DAVA appears more attractively valued with a PEG of 0.28. MSFT earns a higher WallStSmart Score of 72/100 (B).

DAVA

Hold

42

out of 100

Grade: D

Growth: 3.3Profit: 2.5Value: 6.7Quality: 7.0
Piotroski: 5/9Altman Z: 3.01

MSFT

Strong Buy

72

out of 100

Grade: B

Growth: 8.0Profit: 9.5Value: 5.7Quality: 7.0
Piotroski: 4/9Altman Z: 2.51

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DAVA3 strengths · Avg: 10.0/10
PEG RatioValuation
0.2810/10

Growing faster than its price suggests

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.0110/10

Safe zone — low bankruptcy risk

MSFT6 strengths · Avg: 9.8/10
Market CapQuality
$3.28T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
30.2%10/10

Every $100 of equity generates 30 in profit

Profit MarginProfitability
39.3%10/10

Keeps 39 of every $100 in revenue as profit

Operating MarginProfitability
46.3%10/10

Strong operational efficiency at 46.3%

Free Cash FlowQuality
$15.80B10/10

Generating 15.8B in free cash flow

Debt/EquityHealth
0.149/10

Conservative balance sheet, low leverage

Areas to Watch

DAVA4 concerns · Avg: 2.5/10
Market CapQuality
$152.19M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.383/10

Elevated debt levels

Return on EquityProfitability
-241.4%2/10

ROE of -241.4% — below average capital efficiency

Revenue GrowthGrowth
-8.4%2/10

Revenue declined 8.4%

MSFT1 concerns · Avg: 4.0/10
P/E RatioValuation
26.3x4/10

Moderate valuation

Comparative Analysis Report

WallStSmart Research

Bull Case : DAVA

The strongest argument for DAVA centers on PEG Ratio, Price/Book, Altman Z-Score. PEG of 0.28 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 : DAVA

The primary concerns for DAVA are Market Cap, Debt/Equity, Return on Equity.

Bear Case : MSFT

The primary concerns for MSFT are P/E Ratio.

Key Dynamics to Monitor

DAVA profiles as a turnaround stock while MSFT is a growth play — different risk/reward profiles.

DAVA carries more volatility with a beta of 1.11 — expect wider price swings.

MSFT is growing revenue faster at 18.3% — sustainability is the question.

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

Bottom Line

MSFT scores higher overall (72/100 vs 42/100), backed by strong 39.3% margins and 18.3% 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.

Endava Ltd

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Endava plc provides technology services for clients in the consumer products, healthcare, logistics and retail sectors in Europe, Latin America and North America. The company is headquartered in London, United Kingdom.

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 →

Want to dig deeper into these stocks?