WallStSmart

Clearwater Analytics Holdings Inc (CWAN)vsMicrosoft Corporation (MSFT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 38444% more annual revenue ($318.27B vs $825.73M). MSFT leads profitability with a 39.3% profit margin vs -5.8%. MSFT appears more attractively valued with a PEG of 1.42. MSFT earns a higher WallStSmart Score of 72/100 (B).

CWAN

Hold

43

out of 100

Grade: D

Growth: 10.0Profit: 2.5Value: 3.0Quality: 6.0
Piotroski: 1/9Altman Z: 1.63

MSFT

Strong Buy

72

out of 100

Grade: B

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CWANSignificantly Overvalued (-16.1%)

Margin of Safety

-16.1%

Fair Value

$20.33

Current Price

$24.37

$4.04 premium

UndervaluedFair: $20.33Overvalued

Intrinsic value data unavailable for MSFT.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CWAN2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
74.4%10/10

Revenue surging 74.4% year-over-year

EPS GrowthGrowth
202.8%10/10

Earnings expanding 202.8% YoY

MSFT6 strengths · Avg: 9.8/10
Market CapQuality
$3.28T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
30.2%10/10

Every $100 of equity generates 30 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

CWAN4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.634/10

Distress zone — elevated risk

Operating MarginProfitability
4.1%3/10

Operating margin of 4.1%

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
10.372/10

Expensive relative to growth rate

MSFT1 concerns · Avg: 4.0/10
P/E RatioValuation
26.3x4/10

Moderate valuation

Comparative Analysis Report

WallStSmart Research

Bull Case : CWAN

The strongest argument for CWAN centers on Revenue Growth, EPS Growth. Revenue growth of 74.4% 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 : CWAN

The primary concerns for CWAN are Altman Z-Score, Operating Margin, Piotroski F-Score.

Bear Case : MSFT

The primary concerns for MSFT are P/E Ratio.

Key Dynamics to Monitor

CWAN profiles as a hypergrowth stock while MSFT is a growth play — different risk/reward profiles.

MSFT carries more volatility with a beta of 1.09 — expect wider price swings.

CWAN is growing revenue faster at 74.4% — sustainability is the question.

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

Bottom Line

MSFT scores higher overall (72/100 vs 43/100), 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.

Clearwater Analytics Holdings Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Clearwater Analytics Holdings Inc. (CWAN) is a leading provider of innovative, cloud-based investment accounting and analytics solutions designed for investment firms, insurance companies, and multinational corporations. Its advanced platform enhances portfolio management and reporting capabilities, enabling clients to make informed strategic investment decisions while maintaining operational efficiency and regulatory compliance. Positioned at the forefront of the rapidly evolving financial technology sector, Clearwater is well-equipped to capitalize on the growing demand for comprehensive investment solutions, driving sustained growth and ongoing innovation within the financial services industry.

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?