WallStSmart

Microsoft Corporation (MSFT)vsMotorola Solutions Inc (MSI)

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Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 2612% more annual revenue ($331.84B vs $12.24B). MSFT leads profitability with a 40.3% profit margin vs 17.4%. MSFT appears more attractively valued with a PEG of 1.61. MSFT earns a higher WallStSmart Score of 72/100 (B).

MSFT

Strong Buy

72

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 5.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.68

MSI

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 9.0Value: 4.3Quality: 3.5
Piotroski: 3/9Altman Z: 1.41

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MSFT6 strengths · Avg: 9.8/10
Market CapQuality
$3.57T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
30.2%10/10

Every $100 of equity generates 30 in profit

Profit MarginProfitability
40.3%10/10

Keeps 40 of every $100 in revenue as profit

Operating MarginProfitability
45.1%10/10

Strong operational efficiency at 45.1%

Free Cash FlowQuality
$19.64B10/10

Generating 19.6B in free cash flow

Debt/EquityHealth
0.299/10

Conservative balance sheet, low leverage

MSI3 strengths · Avg: 9.0/10
Return on EquityProfitability
79.9%10/10

Every $100 of equity generates 80 in profit

Market CapQuality
$75.64B9/10

Large-cap with strong market position

Operating MarginProfitability
27.4%8/10

Strong operational efficiency at 27.4%

Areas to Watch

MSFT3 concerns · Avg: 4.0/10
PEG RatioValuation
1.614/10

Expensive relative to growth rate

P/E RatioValuation
27.6x4/10

Moderate valuation

Price/BookValuation
8.5x4/10

Trading at 8.5x book value

MSI4 concerns · Avg: 3.3/10
PEG RatioValuation
2.224/10

Expensive relative to growth rate

P/E RatioValuation
36.8x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
30.1x2/10

Trading at 30.1x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : MSFT

The strongest argument for MSFT centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 40.3% and operating margin at 45.1%. Revenue growth of 17.7% demonstrates continued momentum.

Bull Case : MSI

The strongest argument for MSI centers on Return on Equity, Market Cap, Operating Margin. Profitability is solid with margins at 17.4% and operating margin at 27.4%. Revenue growth of 13.3% demonstrates continued momentum.

Bear Case : MSFT

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

Bear Case : MSI

The primary concerns for MSI are PEG Ratio, P/E Ratio, Piotroski F-Score. Debt-to-equity of 3.60 is elevated, increasing financial risk.

Key Dynamics to Monitor

MSFT profiles as a growth stock while MSI is a mature play — different risk/reward profiles.

MSFT carries more volatility with a beta of 1.10 — expect wider price swings.

MSFT is growing revenue faster at 17.7% — sustainability is the question.

MSFT generates stronger free cash flow (19.6B), providing more financial flexibility.

Bottom Line

MSFT scores higher overall (72/100 vs 62/100), backed by strong 40.3% margins and 17.7% 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.

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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Motorola Solutions Inc

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Motorola Solutions, Inc., is an American data communications and telecommunications equipment provider that succeeded Motorola, Inc., following the spinoff of the mobile phone division into Motorola Mobility in 2011. The company is headquartered in Chicago, Illinois.

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