Microsoft Corporation (MSFT)vsTexas Instruments Incorporated (TXN)
MSFT
Microsoft Corporation
$490.30
-1.37%
TECHNOLOGY · Cap: $3.68T
TXN
Texas Instruments Incorporated
$260.67
-1.05%
TECHNOLOGY · Cap: $245.39B
Smart Verdict
WallStSmart Research — data-driven comparison
Microsoft Corporation generates 1606% more annual revenue ($331.84B vs $19.45B). MSFT leads profitability with a 40.3% profit margin vs 31.1%. TXN appears more attractively valued with a PEG of 0.92. TXN earns a higher WallStSmart Score of 78/100 (B+).
MSFT
Strong Buy72
out of 100
Grade: B
TXN
Strong Buy78
out of 100
Grade: B+
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
Mega-cap, among the largest globally
Every $100 of equity generates 34 in profit
Keeps 31 of every $100 in revenue as profit
Strong operational efficiency at 42.6%
Earnings expanding 51.8% YoY
Safe zone — low bankruptcy risk
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 8.2x book value
Premium valuation, high expectations priced in
Trading at 13.2x book value
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 : TXN
The strongest argument for TXN centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 31.1% and operating margin at 42.6%. Revenue growth of 22.8% demonstrates continued momentum.
Bear Case : MSFT
The primary concerns for MSFT are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : TXN
The primary concerns for TXN are P/E Ratio, Price/Book.
Key Dynamics to Monitor
TXN carries more volatility with a beta of 1.31 — expect wider price swings.
TXN is growing revenue faster at 22.8% — 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
TXN scores higher overall (78/100 vs 72/100), backed by strong 31.1% margins and 22.8% revenue growth. 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 →Texas Instruments Incorporated
TECHNOLOGY · SEMICONDUCTORS · USA
Texas Instruments Incorporated (TI) is an American technology company headquartered in Dallas, Texas, that designs and manufactures semiconductors and various integrated circuits, which it sells to electronics designers and manufacturers globally. It is one of the top 10 semiconductor companies worldwide based on sales volume.
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