WallStSmart

Microsoft Corporation (MSFT)vsVertiv Holdings Co (VRT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 2835% more annual revenue ($318.27B vs $10.84B). MSFT leads profitability with a 39.3% profit margin vs 14.4%. MSFT appears more attractively valued with a PEG of 1.28. MSFT earns a higher WallStSmart Score of 72/100 (B).

MSFT

Strong Buy

72

out of 100

Grade: B

Growth: 8.0Profit: 9.5Value: 4.7Quality: 6.5
Piotroski: 4/9Altman Z: 2.51

VRT

Strong Buy

67

out of 100

Grade: B-

Growth: 10.0Profit: 8.0Value: 3.7Quality: 6.3
Piotroski: 4/9Altman Z: 2.25
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MSFTSignificantly Overvalued (-72.4%)

Margin of Safety

-72.4%

Fair Value

$240.84

Current Price

$407.77

$166.93 premium

UndervaluedFair: $240.84Overvalued

Intrinsic value data unavailable for VRT.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MSFT6 strengths · Avg: 9.7/10
Market CapQuality
$3.13T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.0%10/10

Every $100 of equity generates 34 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

Revenue GrowthGrowth
18.3%8/10

18.3% revenue growth

VRT4 strengths · Avg: 9.8/10
Return on EquityProfitability
45.1%10/10

Every $100 of equity generates 45 in profit

Revenue GrowthGrowth
30.1%10/10

Revenue surging 30.1% year-over-year

EPS GrowthGrowth
135.7%10/10

Earnings expanding 135.7% YoY

Market CapQuality
$130.60B9/10

Large-cap with strong market position

Areas to Watch

MSFT1 concerns · Avg: 4.0/10
P/E RatioValuation
25.0x4/10

Moderate valuation

VRT3 concerns · Avg: 2.7/10
PEG RatioValuation
1.664/10

Expensive relative to growth rate

P/E RatioValuation
85.4x2/10

Premium valuation, high expectations priced in

Price/BookValuation
35.7x2/10

Trading at 35.7x book value

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 : VRT

The strongest argument for VRT centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 30.1% demonstrates continued momentum.

Bear Case : MSFT

The primary concerns for MSFT are P/E Ratio.

Bear Case : VRT

The primary concerns for VRT are PEG Ratio, P/E Ratio, Price/Book. A P/E of 85.4x leaves little room for execution misses.

Key Dynamics to Monitor

VRT carries more volatility with a beta of 2.10 — expect wider price swings.

VRT is growing revenue faster at 30.1% — 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 67/100), backed by strong 39.3% margins and 18.3% 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.

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Vertiv Holdings Co

INDUSTRIALS · ELECTRICAL EQUIPMENT & PARTS · USA

Vertiv Holdings Co designs, manufactures and services critical digital infrastructure technologies and lifecycle services for data centers, communication networks, and commercial and industrial environments in the Americas, Asia Pacific, Europe, the Middle East, and Africa. The company is headquartered in Columbus, Ohio.

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