Microsoft Corporation (MSFT)vsSilicon Motion Technology (SIMO)
MSFT
Microsoft Corporation
$407.78
-3.93%
TECHNOLOGY · Cap: $3.03T
SIMO
Silicon Motion Technology
$217.50
+45.80%
TECHNOLOGY · Cap: $7.39B
Smart Verdict
WallStSmart Research — data-driven comparison
Microsoft Corporation generates 35838% more annual revenue ($318.27B vs $885.63M). MSFT leads profitability with a 39.3% profit margin vs 13.9%. SIMO appears more attractively valued with a PEG of 0.70. MSFT earns a higher WallStSmart Score of 72/100 (B).
MSFT
Strong Buy72
out of 100
Grade: B
SIMO
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-70.9%
Fair Value
$238.57
Current Price
$407.78
$169.21 premium
Margin of Safety
-57.0%
Fair Value
$89.16
Current Price
$217.50
$128.34 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 34 in profit
Keeps 39 of every $100 in revenue as profit
Strong operational efficiency at 46.3%
Generating 15.8B in free cash flow
18.3% revenue growth
Revenue surging 45.7% year-over-year
Earnings expanding 118.7% YoY
Growing faster than its price suggests
Areas to Watch
No major concerns identified
Trading at 8.8x book value
Premium valuation, high expectations priced in
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 : SIMO
The strongest argument for SIMO centers on Revenue Growth, EPS Growth, PEG Ratio. Revenue growth of 45.7% demonstrates continued momentum. PEG of 0.70 suggests the stock is reasonably priced for its growth.
Bear Case : MSFT
No major red flags identified for MSFT, but monitor valuation.
Bear Case : SIMO
The primary concerns for SIMO are Price/Book, P/E Ratio, Free Cash Flow. A P/E of 48.4x leaves little room for execution misses.
Key Dynamics to Monitor
MSFT carries more volatility with a beta of 1.11 — expect wider price swings.
SIMO is growing revenue faster at 45.7% — 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 65/100), backed by strong 39.3% margins and 18.3% 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.
Visit Website →Silicon Motion Technology
TECHNOLOGY · SEMICONDUCTORS · USA
Silicon Motion Technology Corporation designs, develops and markets NAND flash controllers for solid state storage devices. The company is headquartered in Kowloon, Hong Kong.
Visit Website →Compare with Other SOFTWARE - INFRASTRUCTURE Stocks
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