WallStSmart

Microsoft Corporation (MSFT)vsWorkiva Inc (WK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 34263% more annual revenue ($331.84B vs $965.70M). MSFT leads profitability with a 40.3% profit margin vs 4.9%. MSFT trades at a lower P/E of 27.4x. MSFT earns a higher WallStSmart Score of 72/100 (B).

MSFT

Strong Buy

72

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 5.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.68

WK

Avoid

31

out of 100

Grade: F

Growth: 6.7Profit: 3.5Value: 4.0Quality: 5.5
Piotroski: 5/9Altman Z: 0.22

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MSFT6 strengths · Avg: 9.8/10
Market CapQuality
$3.68T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
30.2%10/10

Every $100 of equity generates 30 in profit

Profit MarginProfitability
40.3%10/10

Keeps 40 of every $100 in revenue as profit

Operating MarginProfitability
45.1%10/10

Strong operational efficiency at 45.1%

Free Cash FlowQuality
$19.64B10/10

Generating 19.6B in free cash flow

Debt/EquityHealth
0.299/10

Conservative balance sheet, low leverage

WK2 strengths · Avg: 9.0/10
Debt/EquityHealth
-8.0610/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
18.6%8/10

18.6% revenue growth

Areas to Watch

MSFT3 concerns · Avg: 4.0/10
PEG RatioValuation
1.604/10

Expensive relative to growth rate

P/E RatioValuation
27.4x4/10

Moderate valuation

Price/BookValuation
8.4x4/10

Trading at 8.4x book value

WK4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Profit MarginProfitability
4.9%3/10

4.9% margin — thin

Operating MarginProfitability
4.6%3/10

Operating margin of 4.6%

P/E RatioValuation
86.7x2/10

Premium valuation, high expectations priced in

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 40.3% and operating margin at 45.1%. Revenue growth of 17.7% demonstrates continued momentum.

Bull Case : WK

The strongest argument for WK centers on Debt/Equity, Revenue Growth. Revenue growth of 18.6% demonstrates continued momentum.

Bear Case : MSFT

The primary concerns for MSFT are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : WK

The primary concerns for WK are EPS Growth, Profit Margin, Operating Margin. A P/E of 86.7x leaves little room for execution misses. Thin 4.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

MSFT carries more volatility with a beta of 1.11 — expect wider price swings.

WK is growing revenue faster at 18.6% — 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 31/100), backed by strong 40.3% margins and 17.7% revenue growth. Both earn "Strong Buy" and "Avoid" 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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Workiva Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Workiva Inc. provides global cloud-based compliance and regulatory reporting solutions. The company is headquartered in Ames, Iowa.

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