Microsoft Corporation (MSFT)vsToast Inc (TOST)
MSFT
Microsoft Corporation
$495.63
+0.65%
TECHNOLOGY · Cap: $3.68T
TOST
Toast Inc
$32.12
+0.56%
TECHNOLOGY · Cap: $19.62B
Smart Verdict
WallStSmart Research — data-driven comparison
Microsoft Corporation generates 4777% more annual revenue ($331.84B vs $6.80B). MSFT leads profitability with a 40.3% profit margin vs 7.1%. TOST appears more attractively valued with a PEG of 0.25. MSFT earns a higher WallStSmart Score of 72/100 (B).
MSFT
Strong Buy72
out of 100
Grade: B
TOST
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for MSFT.
Margin of Safety
+24.8%
Fair Value
$37.27
Current Price
$32.12
$5.15 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 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
Growing faster than its price suggests
Earnings expanding 100.0% YoY
Safe zone — low bankruptcy risk
Every $100 of equity generates 24 in profit
Revenue surging 23.1% year-over-year
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 8.3x book value
Trading at 9.4x book value
7.1% margin — thin
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 40.3% and operating margin at 45.1%. Revenue growth of 17.7% demonstrates continued momentum.
Bull Case : TOST
The strongest argument for TOST centers on PEG Ratio, EPS Growth, Altman Z-Score. Revenue growth of 23.1% demonstrates continued momentum. PEG of 0.25 suggests the stock is reasonably priced for its growth.
Bear Case : MSFT
The primary concerns for MSFT are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : TOST
The primary concerns for TOST are Price/Book, Profit Margin, P/E Ratio. A P/E of 43.0x leaves little room for execution misses.
Key Dynamics to Monitor
TOST carries more volatility with a beta of 1.73 — expect wider price swings.
TOST is growing revenue faster at 23.1% — 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
MSFT scores higher overall (72/100 vs 68/100), backed by strong 40.3% margins and 17.7% revenue growth. TOST offers better value entry with a 24.8% margin of safety. 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 →Toast Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Toast, Inc. operates a cloud-based technology platform for the restaurant industry in the United States and Ireland. The company is headquartered in Boston, Massachusetts.
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