WallStSmart

Eltek Ltd (ELTK)vsMicrosoft Corporation (MSFT)

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Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 614445% more annual revenue ($318.27B vs $51.79M). MSFT leads profitability with a 39.3% profit margin vs 1.6%. ELTK appears more attractively valued with a PEG of 0.22. MSFT earns a higher WallStSmart Score of 72/100 (B).

ELTK

Hold

46

out of 100

Grade: D+

Growth: 5.3Profit: 4.0Value: 5.3Quality: 5.0

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

ELTKFair Value (-1.2%)

Margin of Safety

-1.2%

Fair Value

$8.51

Current Price

$8.80

$0.29 premium

UndervaluedFair: $8.51Overvalued
MSFTSignificantly Overvalued (-70.9%)

Margin of Safety

-70.9%

Fair Value

$238.57

Current Price

$407.78

$169.21 premium

UndervaluedFair: $238.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ELTK3 strengths · Avg: 9.3/10
PEG RatioValuation
0.2210/10

Growing faster than its price suggests

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
23.1%8/10

Revenue surging 23.1% year-over-year

MSFT6 strengths · Avg: 9.7/10
Market CapQuality
$3.03T10/10

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

ELTK4 concerns · Avg: 3.0/10
Market CapQuality
$58.40M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
1.9%3/10

ROE of 1.9% — below average capital efficiency

Profit MarginProfitability
1.6%3/10

1.6% margin — thin

Operating MarginProfitability
0.9%3/10

Operating margin of 0.9%

MSFT0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : ELTK

The strongest argument for ELTK centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 23.1% demonstrates continued momentum. PEG of 0.22 suggests the stock is reasonably priced for its growth.

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 : ELTK

The primary concerns for ELTK are Market Cap, Return on Equity, Profit Margin. A P/E of 72.4x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.

Bear Case : MSFT

No major red flags identified for MSFT, but monitor valuation.

Key Dynamics to Monitor

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

ELTK is growing revenue faster at 23.1% — sustainability is the question.

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

Monitor ELECTRONIC COMPONENTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MSFT scores higher overall (72/100 vs 46/100), 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.

Eltek Ltd

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

Eltek Ltd. manufactures, markets and sells printed circuit boards (PCBs) in Israel, Europe, North America, India, the Netherlands and internationally. The company is headquartered in Petach Tikva, Israel.

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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