WallStSmart

IONQ Inc (IONQ)vsMicrosoft Corporation (MSFT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 169992% more annual revenue ($318.27B vs $187.12M). IONQ leads profitability with a 174.9% profit margin vs 39.3%. MSFT trades at a lower P/E of 23.8x. MSFT earns a higher WallStSmart Score of 72/100 (B).

IONQ

Hold

47

out of 100

Grade: D+

Growth: 8.0Profit: 4.5Value: 4.0Quality: 6.5
Piotroski: 3/9Altman Z: 0.76

MSFT

Strong Buy

72

out of 100

Grade: B

Growth: 8.0Profit: 9.5Value: 4.7Quality: 7.0
Piotroski: 4/9Altman Z: 2.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for IONQ.

MSFTSignificantly Overvalued (-85.2%)

Margin of Safety

-85.2%

Fair Value

$212.64

Current Price

$416.67

$204.03 premium

UndervaluedFair: $212.64Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

IONQ3 strengths · Avg: 10.0/10
Profit MarginProfitability
174.9%10/10

Keeps 175 of every $100 in revenue as profit

Revenue GrowthGrowth
755.0%10/10

Revenue surging 755.0% year-over-year

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

MSFT6 strengths · Avg: 9.8/10
Market CapQuality
$2.97T10/10

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

IONQ4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
5.6%3/10

ROE of 5.6% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
148.3x2/10

Premium valuation, high expectations priced in

MSFT0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : IONQ

The strongest argument for IONQ centers on Profit Margin, Revenue Growth, Debt/Equity. Profitability is solid with margins at 174.9% and operating margin at -401.8%. Revenue growth of 755.0% 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 : IONQ

The primary concerns for IONQ are EPS Growth, Return on Equity, Piotroski F-Score. A P/E of 148.3x leaves little room for execution misses.

Bear Case : MSFT

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

Key Dynamics to Monitor

IONQ carries more volatility with a beta of 3.18 — expect wider price swings.

IONQ is growing revenue faster at 755.0% — sustainability is the question.

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

Monitor COMPUTER HARDWARE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MSFT scores higher overall (72/100 vs 47/100), backed by strong 39.3% margins and 18.3% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

IONQ Inc

TECHNOLOGY · COMPUTER HARDWARE · USA

IONQ Inc. is a leading innovator in the quantum computing space, dedicated to developing cutting-edge quantum processors and sophisticated software solutions to tackle complex computational challenges across a range of industries, including finance, logistics, and pharmaceuticals. Founded in 2015, the company has capitalized on a cloud-based platform to democratize access to quantum technology, establishing itself as a key player in the market. With a strong portfolio of intellectual property and strategic alliances, IONQ is poised to capitalize on the burgeoning demand for quantum applications, making it an attractive prospect for institutional investors looking to participate in pioneering advancements in technology.

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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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