WallStSmart

Credo Technology Group Holding Ltd (CRDO)vsMicrosoft Corporation (MSFT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 29697% more annual revenue ($318.27B vs $1.07B). MSFT leads profitability with a 39.3% profit margin vs 31.8%. MSFT trades at a lower P/E of 25.0x. MSFT earns a higher WallStSmart Score of 72/100 (B).

CRDO

Strong Buy

69

out of 100

Grade: B-

Growth: 10.0Profit: 9.5Value: 3.0Quality: 9.0
Piotroski: 4/9Altman Z: 4.65

MSFT

Strong Buy

72

out of 100

Grade: B

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CRDOSignificantly Overvalued (-63.0%)

Margin of Safety

-63.0%

Fair Value

$78.77

Current Price

$188.50

$109.73 premium

UndervaluedFair: $78.77Overvalued
MSFTSignificantly Overvalued (-75.3%)

Margin of Safety

-75.3%

Fair Value

$240.06

Current Price

$415.12

$175.06 premium

UndervaluedFair: $240.06Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRDO6 strengths · Avg: 10.0/10
Profit MarginProfitability
31.8%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
36.8%10/10

Strong operational efficiency at 36.8%

Revenue GrowthGrowth
201.5%10/10

Revenue surging 201.5% year-over-year

EPS GrowthGrowth
412.5%10/10

Earnings expanding 412.5% YoY

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.6510/10

Safe zone — low bankruptcy risk

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

Areas to Watch

CRDO2 concerns · Avg: 3.0/10
Price/BookValuation
18.8x4/10

Trading at 18.8x book value

P/E RatioValuation
109.0x2/10

Premium valuation, high expectations priced in

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

Moderate valuation

Comparative Analysis Report

WallStSmart Research

Bull Case : CRDO

The strongest argument for CRDO centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 31.8% and operating margin at 36.8%. Revenue growth of 201.5% 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 : CRDO

The primary concerns for CRDO are Price/Book, P/E Ratio. A P/E of 109.0x leaves little room for execution misses.

Bear Case : MSFT

The primary concerns for MSFT are P/E Ratio.

Key Dynamics to Monitor

CRDO carries more volatility with a beta of 3.18 — expect wider price swings.

CRDO is growing revenue faster at 201.5% — 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 69/100), 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.

Credo Technology Group Holding Ltd

TECHNOLOGY · SEMICONDUCTORS · USA

Credo Technology Group Holding Ltd offers various high-speed connectivity solutions for electrical and optical Ethernet applications in the United States, Mexico, Malaysia, Hong Kong and internationally. The company is headquartered in San Jose, 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.

Visit Website →

Want to dig deeper into these stocks?