WallStSmart

Microsoft Corporation (MSFT)vsSkywater Technology Inc (SKYT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 58673% more annual revenue ($318.27B vs $541.53M). MSFT leads profitability with a 39.3% profit margin vs 21.0%. SKYT trades at a lower P/E of 14.9x. 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

SKYT

Buy

60

out of 100

Grade: C

Growth: 10.0Profit: 5.5Value: 5.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.57
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for MSFT.

SKYTSignificantly Overvalued (-24.6%)

Margin of Safety

-24.6%

Fair Value

$22.81

Current Price

$37.95

$15.14 premium

UndervaluedFair: $22.81Overvalued

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

SKYT5 strengths · Avg: 9.4/10
Return on EquityProfitability
63.2%10/10

Every $100 of equity generates 63 in profit

Revenue GrowthGrowth
162.1%10/10

Revenue surging 162.1% year-over-year

EPS GrowthGrowth
9733.0%10/10

Earnings expanding 9733.0% YoY

Profit MarginProfitability
21.0%9/10

Keeps 21 of every $100 in revenue as profit

P/E RatioValuation
14.9x8/10

Attractively priced relative to earnings

Areas to Watch

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

Moderate valuation

SKYT4 concerns · Avg: 3.3/10
Price/BookValuation
10.3x4/10

Trading at 10.3x book value

Market CapQuality
$1.72B3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.323/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : SKYT

The strongest argument for SKYT centers on Return on Equity, Revenue Growth, EPS Growth. Profitability is solid with margins at 21.0% and operating margin at -3.3%. Revenue growth of 162.1% demonstrates continued momentum.

Bear Case : MSFT

The primary concerns for MSFT are P/E Ratio.

Bear Case : SKYT

The primary concerns for SKYT are Price/Book, Market Cap, Debt/Equity.

Key Dynamics to Monitor

SKYT carries more volatility with a beta of 3.32 — expect wider price swings.

SKYT is growing revenue faster at 162.1% — 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 60/100), 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.

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Skywater Technology Inc

TECHNOLOGY · SEMICONDUCTORS · USA

SkyWater Technology, Inc. manufactures integrated circuits. The company is headquartered in Bloomington, Minnesota.

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