Microsoft Corporation (MSFT)vsOracle Corporation (ORCL)
MSFT
Microsoft Corporation
$416.67
+0.13%
TECHNOLOGY · Cap: $2.97T
ORCL
Oracle Corporation
$213.68
+0.41%
TECHNOLOGY · Cap: $554.04B
Smart Verdict
WallStSmart Research — data-driven comparison
Microsoft Corporation generates 373% more annual revenue ($318.27B vs $67.36B). MSFT leads profitability with a 39.3% profit margin vs 25.4%. ORCL appears more attractively valued with a PEG of 1.04. MSFT earns a higher WallStSmart Score of 72/100 (B).
MSFT
Strong Buy72
out of 100
Grade: B
ORCL
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-85.2%
Fair Value
$212.64
Current Price
$416.67
$204.03 premium
Margin of Safety
-79.9%
Fair Value
$104.69
Current Price
$213.68
$108.99 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 39 of every $100 in revenue as profit
Strong operational efficiency at 46.3%
Generating 15.8B in free cash flow
Conservative balance sheet, low leverage
Mega-cap, among the largest globally
Every $100 of equity generates 42 in profit
Strong operational efficiency at 36.3%
Keeps 25 of every $100 in revenue as profit
Revenue surging 20.6% year-over-year
Earnings expanding 21.9% YoY
Areas to Watch
No major concerns identified
Premium valuation, high expectations priced in
Trading at 18.3x book value
Weak financial health signals
Negative free cash flow — burning cash
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 39.3% and operating margin at 46.3%. Revenue growth of 18.3% demonstrates continued momentum.
Bull Case : ORCL
The strongest argument for ORCL centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 25.4% and operating margin at 36.3%. Revenue growth of 20.6% demonstrates continued momentum.
Bear Case : MSFT
No major red flags identified for MSFT, but monitor valuation.
Bear Case : ORCL
The primary concerns for ORCL are P/E Ratio, Price/Book, Piotroski F-Score. Debt-to-equity of 4.21 is elevated, increasing financial risk.
Key Dynamics to Monitor
ORCL carries more volatility with a beta of 1.66 — expect wider price swings.
ORCL is growing revenue faster at 20.6% — sustainability is the question.
MSFT generates stronger free cash flow (15.8B), providing more financial flexibility.
Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MSFT scores higher overall (72/100 vs 71/100), backed by strong 39.3% margins and 18.3% revenue growth. Both earn "Strong 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 →Oracle Corporation
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Oracle is an American multinational computer technology corporation headquartered in Austin, Texas. The company was formerly headquartered in Redwood Shores, California until December 2020 when it moved its headquarters to Texas. The company sells database software and technology, cloud engineered systems, and enterprise software products, particularly its own brands of database management systems.
Visit Website →Compare with Other SOFTWARE - INFRASTRUCTURE Stocks
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