Fabrinet (FN)vsMicrosoft Corporation (MSFT)
FN
Fabrinet
$643.46
+0.90%
TECHNOLOGY · Cap: $23.05B
MSFT
Microsoft Corporation
$424.46
-3.93%
TECHNOLOGY · Cap: $3.16T
Smart Verdict
WallStSmart Research — data-driven comparison
Microsoft Corporation generates 7747% more annual revenue ($305.45B vs $3.89B). MSFT leads profitability with a 39.0% profit margin vs 9.7%. FN appears more attractively valued with a PEG of 1.19. MSFT earns a higher WallStSmart Score of 74/100 (B).
FN
Buy65
out of 100
Grade: C+
MSFT
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-86.5%
Fair Value
$249.61
Current Price
$643.46
$393.85 premium
Margin of Safety
-85.3%
Fair Value
$229.04
Current Price
$424.46
$195.42 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 35.9% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Earnings expanding 30.7% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 34 in profit
Keeps 39 of every $100 in revenue as profit
Strong operational efficiency at 47.1%
Earnings expanding 59.8% YoY
Generating 15.8B in free cash flow
Areas to Watch
Trading at 10.6x book value
Weak financial health signals
Premium valuation, high expectations priced in
Negative free cash flow — burning cash
Moderate valuation
Trading at 8.1x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : FN
The strongest argument for FN centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 35.9% demonstrates continued momentum. PEG of 1.19 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 : FN
The primary concerns for FN are Price/Book, Piotroski F-Score, P/E Ratio. A P/E of 61.8x leaves little room for execution misses.
Bear Case : MSFT
The primary concerns for MSFT are P/E Ratio, Price/Book.
Key Dynamics to Monitor
FN profiles as a hypergrowth 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.
FN is growing revenue faster at 35.9% — sustainability is the question.
MSFT generates stronger free cash flow (15.8B), providing more financial flexibility.
Bottom Line
MSFT scores higher overall (74/100 vs 65/100), 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.
Fabrinet
TECHNOLOGY · ELECTRONIC COMPONENTS · USA
Fabrinet offers optical packaging and precision electronic, electromechanical and optical manufacturing services in North America, Asia-Pacific and Europe. The company is headquartered in George Town, the Cayman Islands.
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 →Compare with Other ELECTRONIC COMPONENTS Stocks
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