WallStSmart

Monolithic Power Systems Inc (MPWR)vsMicrosoft Corporation (MSFT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 10846% more annual revenue ($305.45B vs $2.79B). MSFT leads profitability with a 39.0% profit margin vs 22.3%. MSFT appears more attractively valued with a PEG of 1.34. MSFT earns a higher WallStSmart Score of 74/100 (B).

MPWR

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 8.5Value: 3.7Quality: 6.8
Piotroski: 1/9Altman Z: 6.86

MSFT

Strong Buy

74

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 4.7Quality: 6.5
Piotroski: 4/9Altman Z: 2.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for MPWR.

MSFTSignificantly Overvalued (-85.3%)

Margin of Safety

-85.3%

Fair Value

$229.04

Current Price

$424.46

$195.42 premium

UndervaluedFair: $229.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MPWR5 strengths · Avg: 8.8/10
Altman Z-ScoreHealth
6.8610/10

Safe zone — low bankruptcy risk

Market CapQuality
$75.00B9/10

Large-cap with strong market position

Profit MarginProfitability
22.3%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
26.6%8/10

Strong operational efficiency at 26.6%

Revenue GrowthGrowth
20.8%8/10

Revenue surging 20.8% year-over-year

MSFT6 strengths · Avg: 10.0/10
Market CapQuality
$3.16T10/10

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

Free Cash FlowQuality
$15.80B10/10

Generating 15.8B in free cash flow

Areas to Watch

MPWR4 concerns · Avg: 2.8/10
PEG RatioValuation
2.474/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

P/E RatioValuation
119.0x2/10

Premium valuation, high expectations priced in

Price/BookValuation
21.1x2/10

Trading at 21.1x book value

MSFT2 concerns · Avg: 4.0/10
P/E RatioValuation
26.6x4/10

Moderate valuation

Price/BookValuation
8.1x4/10

Trading at 8.1x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : MPWR

The strongest argument for MPWR centers on Altman Z-Score, Market Cap, Profit Margin. Profitability is solid with margins at 22.3% and operating margin at 26.6%. Revenue growth of 20.8% 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 39.0% and operating margin at 47.1%. Revenue growth of 16.7% demonstrates continued momentum.

Bear Case : MPWR

The primary concerns for MPWR are PEG Ratio, Piotroski F-Score, P/E Ratio. A P/E of 119.0x leaves little room for execution misses.

Bear Case : MSFT

The primary concerns for MSFT are P/E Ratio, Price/Book.

Key Dynamics to Monitor

MPWR carries more volatility with a beta of 1.48 — expect wider price swings.

MPWR is growing revenue faster at 20.8% — sustainability is the question.

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

Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MSFT scores higher overall (74/100 vs 56/100), backed by strong 39.0% margins and 16.7% revenue growth. 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.

Monolithic Power Systems Inc

TECHNOLOGY · SEMICONDUCTORS · USA

Monolithic Power Systems, Inc. is an American, publicly traded company headquartered in Kirkland, Washington. The company provides power circuits for systems found in cloud computing, telecom infrastructures, automotive, industrial applications and consumer applications.

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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