WallStSmart

Microsoft Corporation (MSFT)vsVeriSign Inc (VRSN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 18809% more annual revenue ($318.27B vs $1.68B). VRSN leads profitability with a 50.0% profit margin vs 39.3%. MSFT appears more attractively valued with a PEG of 1.42. MSFT earns a higher WallStSmart Score of 72/100 (B).

MSFT

Strong Buy

72

out of 100

Grade: B

Growth: 8.0Profit: 9.5Value: 5.7Quality: 7.0
Piotroski: 4/9Altman Z: 2.51

VRSN

Buy

52

out of 100

Grade: C-

Growth: 6.0Profit: 8.5Value: 3.7Quality: 5.5
Piotroski: 6/9Altman Z: -8.96

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MSFT6 strengths · Avg: 9.8/10
Market CapQuality
$3.28T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
30.2%10/10

Every $100 of equity generates 30 in profit

Profit MarginProfitability
39.3%10/10

Keeps 39 of every $100 in revenue as profit

Operating MarginProfitability
46.3%10/10

Strong operational efficiency at 46.3%

Free Cash FlowQuality
$15.80B10/10

Generating 15.8B in free cash flow

Debt/EquityHealth
0.149/10

Conservative balance sheet, low leverage

VRSN3 strengths · Avg: 10.0/10
Profit MarginProfitability
50.0%10/10

Keeps 50 of every $100 in revenue as profit

Operating MarginProfitability
68.4%10/10

Strong operational efficiency at 68.4%

Debt/EquityHealth
-0.8110/10

Conservative balance sheet, low leverage

Areas to Watch

MSFT1 concerns · Avg: 4.0/10
P/E RatioValuation
26.3x4/10

Moderate valuation

VRSN4 concerns · Avg: 2.8/10
P/E RatioValuation
31.0x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

PEG RatioValuation
3.382/10

Expensive relative to growth rate

Altman Z-ScoreHealth
-8.962/10

Distress zone — elevated risk

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 39.3% and operating margin at 46.3%. Revenue growth of 18.3% demonstrates continued momentum.

Bull Case : VRSN

The strongest argument for VRSN centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 50.0% and operating margin at 68.4%.

Bear Case : MSFT

The primary concerns for MSFT are P/E Ratio.

Bear Case : VRSN

The primary concerns for VRSN are P/E Ratio, Return on Equity, PEG Ratio.

Key Dynamics to Monitor

MSFT profiles as a growth stock while VRSN is a mature play — different risk/reward profiles.

MSFT carries more volatility with a beta of 1.09 — 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

MSFT scores higher overall (72/100 vs 52/100), backed by strong 39.3% margins and 18.3% revenue growth. Both earn "Strong Buy" and "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.

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VeriSign Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Verisign Inc. is an American company based in Reston, Virginia, United States that operates a diverse array of network infrastructure, including two of the Internet's thirteen root nameservers. Verisign also offers a range of security services, including managed DNS, distributed denial-of-service (DDoS) attack mitigation and cyber-threat reporting.

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