Hewlett Packard Enterprise Co (HPE)vsMicrosoft Corporation (MSFT)
HPE
Hewlett Packard Enterprise Co
$28.30
+1.25%
TECHNOLOGY · Cap: $37.55B
MSFT
Microsoft Corporation
$424.46
-3.93%
TECHNOLOGY · Cap: $3.16T
Smart Verdict
WallStSmart Research — data-driven comparison
Microsoft Corporation generates 755% more annual revenue ($305.45B vs $35.74B). MSFT leads profitability with a 39.0% profit margin vs -0.3%. HPE appears more attractively valued with a PEG of 0.85. MSFT earns a higher WallStSmart Score of 74/100 (B).
HPE
Buy52
out of 100
Grade: C-
MSFT
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+80.9%
Fair Value
$124.72
Current Price
$28.30
$96.42 discount
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
Growing faster than its price suggests
Reasonable price relative to book value
18.4% revenue growth
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
Weak financial health signals
ROE of -0.5% — below average capital efficiency
Earnings declined 30.3%
Distress zone — elevated risk
Moderate valuation
Trading at 8.1x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : HPE
The strongest argument for HPE centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 18.4% demonstrates continued momentum. PEG of 0.85 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 : HPE
The primary concerns for HPE are Piotroski F-Score, Return on Equity, EPS Growth.
Bear Case : MSFT
The primary concerns for MSFT are P/E Ratio, Price/Book.
Key Dynamics to Monitor
HPE carries more volatility with a beta of 1.22 — expect wider price swings.
HPE is growing revenue faster at 18.4% — sustainability is the question.
MSFT generates stronger free cash flow (15.8B), providing more financial flexibility.
Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MSFT scores higher overall (74/100 vs 52/100), backed by strong 39.0% margins and 16.7% revenue growth. HPE offers better value entry with a 80.9% margin of safety. 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.
Hewlett Packard Enterprise Co
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
The Hewlett Packard Enterprise Company (HPE) is an American multinational enterprise information technology company based in Houston, Texas, United States.
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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