WallStSmart

Gen Digital Inc. (GEN)vsMicrosoft Corporation (MSFT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 6265% more annual revenue ($318.27B vs $5.00B). MSFT leads profitability with a 39.3% profit margin vs 19.5%. GEN appears more attractively valued with a PEG of 1.40. GEN earns a higher WallStSmart Score of 78/100 (B+).

GEN

Strong Buy

78

out of 100

Grade: B+

Growth: 8.7Profit: 9.0Value: 5.3Quality: 3.0
Piotroski: 4/9Altman Z: 0.80

MSFT

Strong Buy

72

out of 100

Grade: B

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GENSignificantly Overvalued (-37.0%)

Margin of Safety

-37.0%

Fair Value

$18.01

Current Price

$26.28

$8.27 premium

UndervaluedFair: $18.01Overvalued

Intrinsic value data unavailable for MSFT.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GEN5 strengths · Avg: 9.2/10
Return on EquityProfitability
37.3%10/10

Every $100 of equity generates 37 in profit

Operating MarginProfitability
63.4%10/10

Strong operational efficiency at 63.4%

EPS GrowthGrowth
265.2%10/10

Earnings expanding 265.2% YoY

P/E RatioValuation
15.5x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
27.0%8/10

Revenue surging 27.0% year-over-year

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

GEN2 concerns · Avg: 1.5/10
Altman Z-ScoreHealth
0.802/10

Distress zone — elevated risk

Debt/EquityHealth
3.161/10

Elevated debt levels

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

Moderate valuation

Comparative Analysis Report

WallStSmart Research

Bull Case : GEN

The strongest argument for GEN centers on Return on Equity, Operating Margin, EPS Growth. Profitability is solid with margins at 19.5% and operating margin at 63.4%. Revenue growth of 27.0% 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 : GEN

The primary concerns for GEN are Altman Z-Score, Debt/Equity. Debt-to-equity of 3.16 is elevated, increasing financial risk.

Bear Case : MSFT

The primary concerns for MSFT are P/E Ratio.

Key Dynamics to Monitor

GEN carries more volatility with a beta of 1.21 — expect wider price swings.

GEN is growing revenue faster at 27.0% — sustainability is the question.

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

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

Bottom Line

GEN scores higher overall (78/100 vs 72/100), backed by strong 19.5% margins and 27.0% 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.

Gen Digital Inc.

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Gen Digital Inc. provides cybersecurity solutions for consumers in the United States, Canada, Latin America, Europe, the Middle East, Africa, Asia Pacific, and Japan. The company is headquartered in Tempe, Arizona.

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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