Microsoft Corporation (MSFT)vsSTMicroelectronics NV ADR (STM)
MSFT
Microsoft Corporation
$416.67
+0.10%
TECHNOLOGY · Cap: $3.28T
STM
STMicroelectronics NV ADR
$70.72
-1.05%
TECHNOLOGY · Cap: $70.67B
Smart Verdict
WallStSmart Research — data-driven comparison
Microsoft Corporation generates 2471% more annual revenue ($318.27B vs $12.38B). MSFT leads profitability with a 39.3% profit margin vs 1.2%. STM appears more attractively valued with a PEG of 0.71. MSFT earns a higher WallStSmart Score of 72/100 (B).
MSFT
Strong Buy72
out of 100
Grade: B
STM
Hold40
out of 100
Grade: D
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 39 of every $100 in revenue as profit
Strong operational efficiency at 46.3%
Generating 15.8B in free cash flow
Conservative balance sheet, low leverage
Large-cap with strong market position
Conservative balance sheet, low leverage
Growing faster than its price suggests
Revenue surging 23.0% year-over-year
Areas to Watch
Moderate valuation
ROE of 0.8% — below average capital efficiency
1.2% margin — thin
Operating margin of 3.6%
Premium valuation, high expectations priced in
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 : STM
The strongest argument for STM centers on Market Cap, Debt/Equity, PEG Ratio. Revenue growth of 23.0% demonstrates continued momentum. PEG of 0.71 suggests the stock is reasonably priced for its growth.
Bear Case : MSFT
The primary concerns for MSFT are P/E Ratio.
Bear Case : STM
The primary concerns for STM are Return on Equity, Profit Margin, Operating Margin. A P/E of 496.9x leaves little room for execution misses. Thin 1.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
STM carries more volatility with a beta of 1.51 — expect wider price swings.
STM is growing revenue faster at 23.0% — 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 40/100), 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.
Visit Website →STMicroelectronics NV ADR
TECHNOLOGY · SEMICONDUCTORS · USA
STMicroelectronics NV designs, develops, manufactures and markets semiconductor products in Europe, the Middle East, Africa, the Americas and Asia Pacific. The company is headquartered in Geneva, Switzerland.
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