Microsoft Corporation (MSFT)vsNVIDIA Corporation (NVDA)
MSFT
Microsoft Corporation
$498.00
-0.72%
TECHNOLOGY · Cap: $3.68T
NVDA
NVIDIA Corporation
$228.87
+0.66%
TECHNOLOGY · Cap: $5.27T
Smart Verdict
WallStSmart Research — data-driven comparison
Microsoft Corporation generates 10% more annual revenue ($331.84B vs $302.97B). NVDA leads profitability with a 63.7% profit margin vs 40.3%. NVDA appears more attractively valued with a PEG of 0.56. NVDA earns a higher WallStSmart Score of 80/100 (A-).
MSFT
Strong Buy72
out of 100
Grade: B
NVDA
Exceptional Buy80
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for MSFT.
Margin of Safety
-53.4%
Fair Value
$143.03
Current Price
$228.87
$85.84 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 30 in profit
Keeps 40 of every $100 in revenue as profit
Strong operational efficiency at 45.1%
Generating 19.6B in free cash flow
Conservative balance sheet, low leverage
Mega-cap, among the largest globally
Every $100 of equity generates 84 in profit
Keeps 64 of every $100 in revenue as profit
Strong operational efficiency at 66.2%
Revenue surging 105.9% year-over-year
Earnings expanding 127.8% YoY
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 8.4x book value
Moderate valuation
Weak financial health signals
Trading at 24.1x book value
Comparative Analysis Report
WallStSmart ResearchBull 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 : NVDA
The strongest argument for NVDA centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 63.7% and operating margin at 66.2%. Revenue growth of 105.9% demonstrates continued momentum.
Bear Case : MSFT
The primary concerns for MSFT are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : NVDA
The primary concerns for NVDA are P/E Ratio, Piotroski F-Score, Price/Book.
Key Dynamics to Monitor
NVDA carries more volatility with a beta of 2.22 — expect wider price swings.
NVDA is growing revenue faster at 105.9% — sustainability is the question.
NVDA generates stronger free cash flow (21.4B), providing more financial flexibility.
Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NVDA scores higher overall (80/100 vs 72/100), backed by strong 63.7% margins and 105.9% revenue growth. Both earn "Exceptional 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.
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.
Visit Website →NVIDIA Corporation
TECHNOLOGY · SEMICONDUCTORS · USA
Nvidia Corporation is an American multinational technology company incorporated in Delaware and based in Santa Clara, California. It designs graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market.
Visit Website →Compare with Other SOFTWARE - INFRASTRUCTURE Stocks
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