WallStSmart

Cerebras Systems Inc. Class A Common Stock (CBRS)vsMicrosoft Corporation (MSFT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 62308% more annual revenue ($318.27B vs $509.99M). CBRS leads profitability with a 46.6% profit margin vs 39.3%. MSFT trades at a lower P/E of 24.1x. MSFT earns a higher WallStSmart Score of 72/100 (B).

CBRS

Hold

45

out of 100

Grade: D+

Growth: 8.0Profit: 6.0Value: 4.0Quality: 5.0

MSFT

Strong Buy

72

out of 100

Grade: B

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

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CBRS4 strengths · Avg: 9.8/10
Return on EquityProfitability
38.4%10/10

Every $100 of equity generates 38 in profit

Profit MarginProfitability
46.6%10/10

Keeps 47 of every $100 in revenue as profit

Revenue GrowthGrowth
1474.0%10/10

Revenue surging 1474.0% year-over-year

Market CapQuality
$56.39B9/10

Large-cap with strong market position

MSFT6 strengths · Avg: 9.8/10
Market CapQuality
$3.01T10/10

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

Debt/EquityHealth
0.149/10

Conservative balance sheet, low leverage

Areas to Watch

CBRS4 concerns · Avg: 2.3/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

P/E RatioValuation
626.3x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-392.79M2/10

Negative free cash flow — burning cash

Operating MarginProfitability
-30.6%1/10

Operating margin of -30.6%

MSFT1 concerns · Avg: 4.0/10
Price/BookValuation
8.1x4/10

Trading at 8.1x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : CBRS

The strongest argument for CBRS centers on Return on Equity, Profit Margin, Revenue Growth. Profitability is solid with margins at 46.6% and operating margin at -30.6%. Revenue growth of 1474.0% 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 39.3% and operating margin at 46.3%. Revenue growth of 18.3% demonstrates continued momentum.

Bear Case : CBRS

The primary concerns for CBRS are EPS Growth, P/E Ratio, Free Cash Flow. A P/E of 626.3x leaves little room for execution misses.

Bear Case : MSFT

The primary concerns for MSFT are Price/Book.

Key Dynamics to Monitor

CBRS is growing revenue faster at 1474.0% — sustainability is the question.

MSFT generates stronger free cash flow (15.8B), providing more financial flexibility.

Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MSFT scores higher overall (72/100 vs 45/100), backed by strong 39.3% margins and 18.3% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Cerebras Systems Inc. Class A Common Stock

TECHNOLOGY · SEMICONDUCTORS · USA

Cerebras Systems Inc. designs and develops processors for artificial intelligence (AI) training and inference in the United States, Europe, and Asia. The company is headquartered in Sunnyvale, California.

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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