WallStSmart

ASML Holding N.V. New York Registry Shares (ASML)vsMicrosoft Corporation (MSFT)

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Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 778% more annual revenue ($346.44B vs $39.47B). MSFT leads profitability with a 41.2% profit margin vs 34.1%. ASML appears more attractively valued with a PEG of 0.85. ASML earns a higher WallStSmart Score of 76/100 (B+).

ASML

Strong Buy

76

out of 100

Grade: B+

Growth: 9.3Profit: 10.0Value: 5.7Quality: 7.5
Piotroski: 6/9Altman Z: 2.41

MSFT

Strong Buy

72

out of 100

Grade: B

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

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ASML6 strengths · Avg: 10.0/10
Market CapQuality
$630.38B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
61.1%10/10

Every $100 of equity generates 61 in profit

Profit MarginProfitability
34.1%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
44.4%10/10

Strong operational efficiency at 44.4%

Revenue GrowthGrowth
55.2%10/10

Revenue surging 55.2% year-over-year

EPS GrowthGrowth
135.9%10/10

Earnings expanding 135.9% YoY

MSFT6 strengths · Avg: 9.8/10
Market CapQuality
$3.88T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
30.3%10/10

Every $100 of equity generates 30 in profit

Profit MarginProfitability
41.2%10/10

Keeps 41 of every $100 in revenue as profit

Operating MarginProfitability
49.8%10/10

Strong operational efficiency at 49.8%

Free Cash FlowQuality
$18.63B10/10

Generating 18.6B in free cash flow

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

Areas to Watch

ASML2 concerns · Avg: 2.0/10
P/E RatioValuation
40.3x2/10

Premium valuation, high expectations priced in

Price/BookValuation
1217.7x2/10

Trading at 1217.7x book value

MSFT3 concerns · Avg: 4.0/10
PEG RatioValuation
1.704/10

Expensive relative to growth rate

P/E RatioValuation
27.2x4/10

Moderate valuation

Price/BookValuation
8.4x4/10

Trading at 8.4x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : ASML

The strongest argument for ASML centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 34.1% and operating margin at 44.4%. Revenue growth of 55.2% demonstrates continued momentum.

Bull Case : MSFT

The strongest argument for MSFT centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 41.2% and operating margin at 49.8%. Revenue growth of 18.8% demonstrates continued momentum.

Bear Case : ASML

The primary concerns for ASML are P/E Ratio, Price/Book. A P/E of 40.3x leaves little room for execution misses.

Bear Case : MSFT

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

Key Dynamics to Monitor

ASML carries more volatility with a beta of 1.30 — expect wider price swings.

ASML is growing revenue faster at 55.2% — sustainability is the question.

MSFT generates stronger free cash flow (18.6B), providing more financial flexibility.

Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ASML scores higher overall (76/100 vs 72/100), backed by strong 34.1% margins and 55.2% 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.

ASML Holding N.V. New York Registry Shares

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

ASML Holding NV develops, produces, markets, sells and services advanced semiconductor equipment systems consisting of lithography, metrology and inspection related systems for memory and logic chip manufacturers. The company is headquartered in Veldhoven, the Netherlands.

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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