Microsoft Corporation (MSFT)vsSilicon Motion Technology (SIMO)
MSFT
Microsoft Corporation
$495.63
+0.65%
TECHNOLOGY · Cap: $3.68T
SIMO
Silicon Motion Technology
$284.48
+7.25%
TECHNOLOGY · Cap: $9.42B
Smart Verdict
WallStSmart Research — data-driven comparison
Microsoft Corporation generates 25162% more annual revenue ($331.84B vs $1.31B). MSFT leads profitability with a 40.3% profit margin vs 22.1%. SIMO appears more attractively valued with a PEG of 0.70. SIMO earns a higher WallStSmart Score of 78/100 (B+).
MSFT
Strong Buy72
out of 100
Grade: B
SIMO
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for MSFT.
Margin of Safety
-23.9%
Fair Value
$112.96
Current Price
$284.48
$171.52 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
Revenue surging 127.0% year-over-year
Earnings expanding 734.0% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Keeps 22 of every $100 in revenue as profit
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 8.3x book value
Premium valuation, high expectations priced in
Trading at 9.2x book value
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 40.3% and operating margin at 45.1%. Revenue growth of 17.7% demonstrates continued momentum.
Bull Case : SIMO
The strongest argument for SIMO centers on Revenue Growth, EPS Growth, Debt/Equity. Profitability is solid with margins at 22.1% and operating margin at 22.4%. Revenue growth of 127.0% demonstrates continued momentum.
Bear Case : MSFT
The primary concerns for MSFT are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : SIMO
The primary concerns for SIMO are P/E Ratio, Price/Book, Free Cash Flow.
Key Dynamics to Monitor
SIMO carries more volatility with a beta of 1.70 — expect wider price swings.
SIMO is growing revenue faster at 127.0% — sustainability is the question.
MSFT generates stronger free cash flow (19.6B), providing more financial flexibility.
Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SIMO scores higher overall (78/100 vs 72/100), backed by strong 22.1% margins and 127.0% 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 →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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