WallStSmart

Gilead Sciences Inc (GILD)vsMicrosoft Corporation (MSFT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 937% more annual revenue ($305.45B vs $29.44B). MSFT leads profitability with a 39.0% profit margin vs 28.9%. GILD appears more attractively valued with a PEG of 0.38. MSFT earns a higher WallStSmart Score of 74/100 (B).

GILD

Strong Buy

72

out of 100

Grade: B

Growth: 5.3Profit: 9.5Value: 10.0Quality: 5.5
Piotroski: 6/9

MSFT

Strong Buy

74

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 10.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GILDUndervalued (+53.9%)

Margin of Safety

+53.9%

Fair Value

$299.95

Current Price

$138.26

$161.69 discount

UndervaluedFair: $299.95Overvalued
MSFTUndervalued (+50.1%)

Margin of Safety

+50.1%

Fair Value

$747.40

Current Price

$371.04

$376.36 discount

UndervaluedFair: $747.40Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GILD6 strengths · Avg: 9.3/10
PEG RatioValuation
0.3810/10

Growing faster than its price suggests

Return on EquityProfitability
40.7%10/10

Every $100 of equity generates 41 in profit

Operating MarginProfitability
37.4%10/10

Strong operational efficiency at 37.4%

Market CapQuality
$171.45B9/10

Large-cap with strong market position

Profit MarginProfitability
28.9%9/10

Keeps 29 of every $100 in revenue as profit

EPS GrowthGrowth
23.4%8/10

Earnings expanding 23.4% YoY

MSFT6 strengths · Avg: 9.7/10
Market CapQuality
$2.85T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.4%10/10

Every $100 of equity generates 34 in profit

Profit MarginProfitability
39.0%10/10

Keeps 39 of every $100 in revenue as profit

Operating MarginProfitability
47.1%10/10

Strong operational efficiency at 47.1%

EPS GrowthGrowth
59.8%10/10

Earnings expanding 59.8% YoY

Revenue GrowthGrowth
16.7%8/10

16.7% revenue growth

Areas to Watch

GILD1 concerns · Avg: 4.0/10
Revenue GrowthGrowth
4.7%4/10

4.7% revenue growth

MSFT0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : GILD

The strongest argument for GILD centers on PEG Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 28.9% and operating margin at 37.4%. PEG of 0.38 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 : GILD

The primary concerns for GILD are Revenue Growth.

Bear Case : MSFT

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

Key Dynamics to Monitor

GILD profiles as a value 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 16.7% — sustainability is the question.

MSFT generates stronger free cash flow (5.9B), providing more financial flexibility.

Bottom Line

MSFT scores higher overall (74/100 vs 72/100), backed by strong 39.0% margins and 16.7% revenue growth. GILD offers better value entry with a 53.9% margin of safety. 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.

Gilead Sciences Inc

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Gilead Sciences, Inc. is an American biopharmaceutical company headquartered in Foster City, California, that focuses on researching and developing antiviral drugs used in the treatment of HIV, hepatitis B, hepatitis C, and influenza, including Harvoni and Sovaldi.

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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