WallStSmart

Microsoft Corporation (MSFT)vsPetroleo Brasileiro Petrobras SA ADR (PBR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Petroleo Brasileiro Petrobras SA ADR generates 56% more annual revenue ($498.09B vs $318.27B). MSFT leads profitability with a 39.3% profit margin vs 21.6%. MSFT appears more attractively valued with a PEG of 1.42. MSFT earns a higher WallStSmart Score of 72/100 (B).

MSFT

Strong Buy

72

out of 100

Grade: B

Growth: 8.0Profit: 9.5Value: 5.7Quality: 7.0
Piotroski: 4/9Altman Z: 2.51

PBR

Strong Buy

66

out of 100

Grade: B-

Growth: 2.7Profit: 8.5Value: 7.3Quality: 5.5
Piotroski: 4/9Altman Z: 2.08
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for MSFT.

PBRUndervalued (+89.6%)

Margin of Safety

+89.6%

Fair Value

$176.60

Current Price

$17.75

$158.85 discount

UndervaluedFair: $176.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MSFT6 strengths · Avg: 9.8/10
Market CapQuality
$3.28T10/10

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

PBR6 strengths · Avg: 9.5/10
P/E RatioValuation
5.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
32.0%10/10

Strong operational efficiency at 32.0%

Market CapQuality
$117.55B9/10

Large-cap with strong market position

Return on EquityProfitability
23.9%9/10

Every $100 of equity generates 24 in profit

Profit MarginProfitability
21.6%9/10

Keeps 22 of every $100 in revenue as profit

Areas to Watch

MSFT1 concerns · Avg: 4.0/10
P/E RatioValuation
26.3x4/10

Moderate valuation

PBR3 concerns · Avg: 2.7/10
Revenue GrowthGrowth
0.4%4/10

0.4% revenue growth

PEG RatioValuation
4.572/10

Expensive relative to growth rate

EPS GrowthGrowth
-7.2%2/10

Earnings declined 7.2%

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 39.3% and operating margin at 46.3%. Revenue growth of 18.3% demonstrates continued momentum.

Bull Case : PBR

The strongest argument for PBR centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 21.6% and operating margin at 32.0%.

Bear Case : MSFT

The primary concerns for MSFT are P/E Ratio.

Bear Case : PBR

The primary concerns for PBR are Revenue Growth, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

MSFT profiles as a growth stock while PBR is a value play — different risk/reward profiles.

MSFT carries more volatility with a beta of 1.09 — expect wider price swings.

MSFT is growing revenue faster at 18.3% — sustainability is the question.

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

Bottom Line

MSFT scores higher overall (72/100 vs 66/100), backed by strong 39.3% margins and 18.3% revenue growth. PBR offers better value entry with a 89.6% margin of safety. 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.

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Petroleo Brasileiro Petrobras SA ADR

ENERGY · OIL & GAS INTEGRATED · USA

Petrleo Brasileiro SA - Petrobras produces and sells oil and gas in Brazil and internationally. The company is headquartered in Rio de Janeiro, Brazil.

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