Microsoft Corporation (MSFT)vsWestern Digital Corporation (WDC)
MSFT
Microsoft Corporation
$487.46
-1.09%
TECHNOLOGY · Cap: $3.66T
WDC
Western Digital Corporation
$519.17
-5.36%
TECHNOLOGY · Cap: $189.08B
Smart Verdict
WallStSmart Research — data-driven comparison
Microsoft Corporation generates 2718% more annual revenue ($331.84B vs $11.78B). WDC leads profitability with a 55.3% profit margin vs 40.3%. WDC appears more attractively valued with a PEG of 0.49. WDC earns a higher WallStSmart Score of 79/100 (B+).
MSFT
Strong Buy72
out of 100
Grade: B
WDC
Strong Buy79
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 15.8B in free cash flow
17.7% revenue growth
Growing faster than its price suggests
Every $100 of equity generates 67 in profit
Keeps 55 of every $100 in revenue as profit
Strong operational efficiency at 37.0%
Revenue surging 45.5% year-over-year
Earnings expanding 482.9% YoY
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 8.2x book value
Premium valuation, high expectations priced in
Distress zone — elevated risk
Trading at 24.8x 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 : WDC
The strongest argument for WDC centers on PEG Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 55.3% and operating margin at 37.0%. Revenue growth of 45.5% demonstrates continued momentum.
Bear Case : MSFT
The primary concerns for MSFT are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : WDC
The primary concerns for WDC are P/E Ratio, Altman Z-Score, Price/Book.
Key Dynamics to Monitor
WDC carries more volatility with a beta of 2.22 — expect wider price swings.
WDC is growing revenue faster at 45.5% — 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
WDC scores higher overall (79/100 vs 72/100), backed by strong 55.3% margins and 45.5% 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 →Western Digital Corporation
TECHNOLOGY · COMPUTER HARDWARE · USA
Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.
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