WallStSmart

Microsoft Corporation (MSFT)vsParsons Corp (PSN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 4951% more annual revenue ($318.27B vs $6.30B). MSFT leads profitability with a 39.3% profit margin vs 3.6%. MSFT trades at a lower P/E of 23.8x. MSFT earns a higher WallStSmart Score of 72/100 (B).

MSFT

Strong Buy

72

out of 100

Grade: B

Growth: 8.0Profit: 9.5Value: 4.7Quality: 7.0
Piotroski: 4/9Altman Z: 2.51

PSN

Hold

42

out of 100

Grade: D

Growth: 4.0Profit: 5.5Value: 4.3Quality: 6.5
Piotroski: 4/9Altman Z: 2.30
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MSFTSignificantly Overvalued (-77.9%)

Margin of Safety

-77.9%

Fair Value

$213.30

Current Price

$367.34

$154.04 premium

UndervaluedFair: $213.30Overvalued
PSNSignificantly Overvalued (-27.8%)

Margin of Safety

-27.8%

Fair Value

$47.13

Current Price

$58.72

$11.59 premium

UndervaluedFair: $47.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MSFT6 strengths · Avg: 9.8/10
Market CapQuality
$2.97T10/10

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

PSN1 strengths · Avg: 8.0/10
Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Areas to Watch

MSFT0 concerns · Avg: 0/10

No major concerns identified

PSN4 concerns · Avg: 2.8/10
P/E RatioValuation
27.1x4/10

Moderate valuation

Profit MarginProfitability
3.6%3/10

3.6% margin — thin

Revenue GrowthGrowth
-4.1%2/10

Revenue declined 4.1%

EPS GrowthGrowth
-17.9%2/10

Earnings declined 17.9%

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 : PSN

The strongest argument for PSN centers on Price/Book.

Bear Case : MSFT

No major red flags identified for MSFT, but monitor valuation.

Bear Case : PSN

The primary concerns for PSN are P/E Ratio, Profit Margin, Revenue Growth. Thin 3.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

MSFT profiles as a growth stock while PSN is a value 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 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 42/100), backed by strong 39.3% margins and 18.3% revenue growth. Both earn "Strong Buy" and "Hold" 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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Parsons Corp

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Parsons Corporation provides technology-based solutions in defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. The company is headquartered in Centreville, Virginia.

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