WallStSmart

Fair Isaac Corporation (FICO)vsMicrosoft Corporation (MSFT)

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Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 14009% more annual revenue ($318.27B vs $2.26B). MSFT leads profitability with a 39.3% profit margin vs 33.7%. FICO appears more attractively valued with a PEG of 0.79. FICO earns a higher WallStSmart Score of 79/100 (B+).

FICO

Strong Buy

79

out of 100

Grade: B+

Growth: 9.3Profit: 10.0Value: 5.7Quality: 8.5
Piotroski: 5/9Altman Z: 6.04

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

FICO6 strengths · Avg: 10.0/10
Return on EquityProfitability
35.6%10/10

Every $100 of equity generates 36 in profit

Profit MarginProfitability
33.7%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
58.2%10/10

Strong operational efficiency at 58.2%

Revenue GrowthGrowth
38.7%10/10

Revenue surging 38.7% year-over-year

EPS GrowthGrowth
69.0%10/10

Earnings expanding 69.0% YoY

Debt/EquityHealth
-1.7410/10

Conservative balance sheet, low leverage

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

FICO1 concerns · Avg: 4.0/10
P/E RatioValuation
37.5x4/10

Premium valuation, high expectations priced in

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

Moderate valuation

Comparative Analysis Report

WallStSmart Research

Bull Case : FICO

The strongest argument for FICO centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 33.7% and operating margin at 58.2%. Revenue growth of 38.7% 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 : FICO

The primary concerns for FICO are P/E Ratio.

Bear Case : MSFT

The primary concerns for MSFT are P/E Ratio.

Key Dynamics to Monitor

FICO carries more volatility with a beta of 1.28 — expect wider price swings.

FICO is growing revenue faster at 38.7% — sustainability is the question.

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

Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

FICO scores higher overall (79/100 vs 72/100), backed by strong 33.7% margins and 38.7% revenue growth. Both earn "Strong Buy" and "Strong 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.

Fair Isaac Corporation

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Fair Isaac Corporation develops data management, software and analytics products and services that enable companies to automate, improve and connect decisions in North America, Latin America, Europe, the Middle East, Africa and Asia Pacific. The company is headquartered in San Jose, California.

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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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