WallStSmart

Microsoft Corporation (MSFT)vsSony Group Corp (SONY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sony Group Corp generates 4212% more annual revenue ($13.17T vs $305.45B). MSFT leads profitability with a 39.0% profit margin vs -1.6%. MSFT appears more attractively valued with a PEG of 1.31. MSFT earns a higher WallStSmart Score of 74/100 (B).

MSFT

Strong Buy

74

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 10.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.51

SONY

Hold

47

out of 100

Grade: D+

Growth: 7.3Profit: 5.0Value: 6.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MSFTUndervalued (+47.6%)

Margin of Safety

+47.6%

Fair Value

$747.86

Current Price

$391.79

$356.07 discount

UndervaluedFair: $747.86Overvalued
SONYUndervalued (+8.0%)

Margin of Safety

+8.0%

Fair Value

$24.87

Current Price

$20.38

$4.49 discount

UndervaluedFair: $24.87Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MSFT6 strengths · Avg: 9.7/10
Market CapQuality
$2.97T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.4%10/10

Every $100 of equity generates 34 in profit

Profit MarginProfitability
39.0%10/10

Keeps 39 of every $100 in revenue as profit

Operating MarginProfitability
47.1%10/10

Strong operational efficiency at 47.1%

EPS GrowthGrowth
59.8%10/10

Earnings expanding 59.8% YoY

Revenue GrowthGrowth
16.7%8/10

16.7% revenue growth

SONY5 strengths · Avg: 9.0/10
Revenue GrowthGrowth
50.0%10/10

Revenue surging 50.0% year-over-year

Free Cash FlowQuality
$898.45B10/10

Generating 898.5B in free cash flow

Market CapQuality
$128.56B9/10

Large-cap with strong market position

P/E RatioValuation
16.8x8/10

Attractively priced relative to earnings

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Areas to Watch

MSFT0 concerns · Avg: 0/10

No major concerns identified

SONY2 concerns · Avg: 1.5/10
PEG RatioValuation
2.972/10

Expensive relative to growth rate

Profit MarginProfitability
-1.6%1/10

Currently unprofitable

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 39.0% and operating margin at 47.1%. Revenue growth of 16.7% demonstrates continued momentum.

Bull Case : SONY

The strongest argument for SONY centers on Revenue Growth, Free Cash Flow, Market Cap. Revenue growth of 50.0% demonstrates continued momentum.

Bear Case : MSFT

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

Bear Case : SONY

The primary concerns for SONY are PEG Ratio, Profit Margin.

Key Dynamics to Monitor

MSFT profiles as a growth stock while SONY is a hypergrowth play — different risk/reward profiles.

MSFT carries more volatility with a beta of 1.11 — expect wider price swings.

SONY is growing revenue faster at 50.0% — sustainability is the question.

SONY generates stronger free cash flow (898.5B), providing more financial flexibility.

Bottom Line

MSFT scores higher overall (74/100 vs 47/100), backed by strong 39.0% margins and 16.7% 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.

Visit Website →

Sony Group Corp

TECHNOLOGY · CONSUMER ELECTRONICS · USA

Sony Group Corporation designs, develops, produces and sells electronic equipment, instruments and devices for the consumer, professional and industrial markets worldwide. The company is headquartered in Tokyo, Japan.

Want to dig deeper into these stocks?