WallStSmart

Daily Journal Corp (DJCO)vsMicrosoft Corporation (MSFT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 355377% more annual revenue ($318.27B vs $89.53M). DJCO leads profitability with a 104.2% profit margin vs 39.3%. MSFT appears more attractively valued with a PEG of 1.34. MSFT earns a higher WallStSmart Score of 72/100 (B).

DJCO

Buy

64

out of 100

Grade: C+

Growth: 8.0Profit: 7.5Value: 4.7Quality: 7.8
Piotroski: 5/9Altman Z: 4.65

MSFT

Strong Buy

72

out of 100

Grade: B

Growth: 8.0Profit: 9.5Value: 4.7Quality: 6.5
Piotroski: 4/9Altman Z: 2.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DJCOSignificantly Overvalued (-71.7%)

Margin of Safety

-71.7%

Fair Value

$325.08

Current Price

$528.76

$203.68 premium

UndervaluedFair: $325.08Overvalued
MSFTSignificantly Overvalued (-70.9%)

Margin of Safety

-70.9%

Fair Value

$238.57

Current Price

$407.78

$169.21 premium

UndervaluedFair: $238.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DJCO6 strengths · Avg: 9.5/10
P/E RatioValuation
7.9x10/10

Attractively priced relative to earnings

Profit MarginProfitability
104.2%10/10

Keeps 104 of every $100 in revenue as profit

EPS GrowthGrowth
57.6%10/10

Earnings expanding 57.6% YoY

Altman Z-ScoreHealth
4.6510/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
27.7%9/10

Every $100 of equity generates 28 in profit

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

MSFT6 strengths · Avg: 9.7/10
Market CapQuality
$3.03T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.0%10/10

Every $100 of equity generates 34 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

Revenue GrowthGrowth
18.3%8/10

18.3% revenue growth

Areas to Watch

DJCO3 concerns · Avg: 2.3/10
Market CapQuality
$734.15M3/10

Smaller company, higher risk/reward

PEG RatioValuation
4.322/10

Expensive relative to growth rate

Free Cash FlowQuality
$-1.95M2/10

Negative free cash flow — burning cash

MSFT0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : DJCO

The strongest argument for DJCO centers on P/E Ratio, Profit Margin, EPS Growth. Profitability is solid with margins at 104.2% and operating margin at 5.5%. Revenue growth of 10.4% 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 39.3% and operating margin at 46.3%. Revenue growth of 18.3% demonstrates continued momentum.

Bear Case : DJCO

The primary concerns for DJCO are Market Cap, PEG Ratio, Free Cash Flow.

Bear Case : MSFT

No major red flags identified for MSFT, but monitor valuation.

Key Dynamics to Monitor

DJCO profiles as a mature stock while MSFT is a growth play — different risk/reward profiles.

MSFT 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 64/100), backed by strong 39.3% margins and 18.3% 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.

Daily Journal Corp

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Daily Journal Corporation publishes newspapers and websites covering California, Arizona, and Utah. The company is headquartered in Los Angeles, California.

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?