Microsoft Corporation (MSFT)vsStoneCo Ltd (STNE)
MSFT
Microsoft Corporation
$367.34
+1.80%
TECHNOLOGY · Cap: $2.97T
STNE
StoneCo Ltd
$10.74
-3.35%
TECHNOLOGY · Cap: $2.74B
Smart Verdict
WallStSmart Research — data-driven comparison
Microsoft Corporation generates 2251% more annual revenue ($318.27B vs $13.54B). MSFT leads profitability with a 39.3% profit margin vs 26.0%. STNE trades at a lower P/E of 4.2x. STNE earns a higher WallStSmart Score of 77/100 (B+).
MSFT
Strong Buy72
out of 100
Grade: B
STNE
Strong Buy77
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-77.9%
Fair Value
$213.30
Current Price
$367.34
$154.04 premium
Margin of Safety
+79.4%
Fair Value
$85.94
Current Price
$10.74
$75.20 discount
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
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 44.3%
Earnings expanding 273.8% YoY
Every $100 of equity generates 28 in profit
Keeps 26 of every $100 in revenue as profit
Areas to Watch
No major concerns identified
4.3% revenue growth
Elevated debt levels
Distress zone — elevated risk
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 : STNE
The strongest argument for STNE centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 26.0% and operating margin at 44.3%.
Bear Case : MSFT
No major red flags identified for MSFT, but monitor valuation.
Bear Case : STNE
The primary concerns for STNE are Revenue Growth, Debt/Equity, Altman Z-Score.
Key Dynamics to Monitor
MSFT profiles as a growth stock while STNE is a value play — different risk/reward profiles.
STNE carries more volatility with a beta of 1.59 — expect wider price swings.
MSFT is growing revenue faster at 18.3% — sustainability is the question.
MSFT generates stronger free cash flow (15.8B), providing more financial flexibility.
Bottom Line
STNE scores higher overall (77/100 vs 72/100), backed by strong 26.0% margins. 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 →StoneCo Ltd
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
StoneCo Ltd. provides fintech solutions to merchants and integrated partners to conduct e-commerce through store, online and mobile channels in Brazil.
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