WallStSmart

AMTD Digital Inc. (HKD)vsMicrosoft Corporation (MSFT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 233754% more annual revenue ($318.27B vs $136.10M). HKD leads profitability with a 40.2% profit margin vs 39.3%. HKD trades at a lower P/E of 8.9x. HKD earns a higher WallStSmart Score of 73/100 (B).

HKD

Strong Buy

73

out of 100

Grade: B

Growth: 10.0Profit: 9.0Value: 8.3Quality: 5.5
Piotroski: 3/9Altman Z: 2.04

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

HKDUndervalued (+75.3%)

Margin of Safety

+75.3%

Fair Value

$6.06

Current Price

$1.59

$4.47 discount

UndervaluedFair: $6.06Overvalued
MSFTSignificantly Overvalued (-82.9%)

Margin of Safety

-82.9%

Fair Value

$215.02

Current Price

$451.10

$236.08 premium

UndervaluedFair: $215.02Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HKD6 strengths · Avg: 10.0/10
P/E RatioValuation
8.9x10/10

Attractively priced relative to earnings

Return on EquityProfitability
37.1%10/10

Every $100 of equity generates 37 in profit

Profit MarginProfitability
40.2%10/10

Keeps 40 of every $100 in revenue as profit

Operating MarginProfitability
60.5%10/10

Strong operational efficiency at 60.5%

Revenue GrowthGrowth
340.9%10/10

Revenue surging 340.9% year-over-year

EPS GrowthGrowth
81.0%10/10

Earnings expanding 81.0% YoY

MSFT6 strengths · Avg: 9.7/10
Market CapQuality
$2.90T10/10

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

Revenue GrowthGrowth
18.3%8/10

18.3% revenue growth

Areas to Watch

HKD3 concerns · Avg: 3.0/10
Market CapQuality
$505.99M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.223/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

MSFT1 concerns · Avg: 4.0/10
Price/BookValuation
8.1x4/10

Trading at 8.1x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : HKD

The strongest argument for HKD centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 40.2% and operating margin at 60.5%. Revenue growth of 340.9% 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 : HKD

The primary concerns for HKD are Market Cap, Debt/Equity, Piotroski F-Score.

Bear Case : MSFT

The primary concerns for MSFT are Price/Book.

Key Dynamics to Monitor

HKD carries more volatility with a beta of 2.00 — expect wider price swings.

HKD is growing revenue faster at 340.9% — 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

HKD scores higher overall (73/100 vs 72/100), backed by strong 40.2% margins and 340.9% 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.

AMTD Digital Inc.

TECHNOLOGY · SOFTWARE - APPLICATION · USA

AMTD Digital Inc. designs and develops a digital platform to provide financial, media, content and marketing, and investment solutions.

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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