EPAM Systems Inc (EPAM)vsMicrosoft Corporation (MSFT)
EPAM
EPAM Systems Inc
$99.23
-4.81%
TECHNOLOGY · Cap: $5.50B
MSFT
Microsoft Corporation
$415.12
-1.34%
TECHNOLOGY · Cap: $3.13T
Smart Verdict
WallStSmart Research — data-driven comparison
Microsoft Corporation generates 5732% more annual revenue ($318.27B vs $5.46B). MSFT leads profitability with a 39.3% profit margin vs 6.9%. EPAM appears more attractively valued with a PEG of 0.66. MSFT earns a higher WallStSmart Score of 72/100 (B).
EPAM
Strong Buy66
out of 100
Grade: B-
MSFT
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+57.1%
Fair Value
$414.58
Current Price
$99.23
$315.35 discount
Margin of Safety
-72.4%
Fair Value
$240.84
Current Price
$415.12
$174.28 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Mega-cap, among the largest globally
Every $100 of equity generates 34 in profit
Keeps 39 of every $100 in revenue as profit
Strong operational efficiency at 46.3%
Generating 15.8B in free cash flow
18.3% revenue growth
Areas to Watch
6.9% margin — thin
Weak financial health signals
Negative free cash flow — burning cash
Moderate valuation
Comparative Analysis Report
WallStSmart ResearchBull Case : EPAM
The strongest argument for EPAM centers on Price/Book, Debt/Equity, Altman Z-Score. Revenue growth of 12.8% demonstrates continued momentum. PEG of 0.66 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 : EPAM
The primary concerns for EPAM are Profit Margin, Piotroski F-Score, Free Cash Flow.
Bear Case : MSFT
The primary concerns for MSFT are P/E Ratio.
Key Dynamics to Monitor
EPAM profiles as a value stock while MSFT is a growth play — different risk/reward profiles.
EPAM carries more volatility with a beta of 1.45 — expect wider price swings.
MSFT is growing revenue faster at 18.3% — 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 66/100), backed by strong 39.3% margins and 18.3% revenue growth. EPAM offers better value entry with a 57.1% margin of safety. 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.
EPAM Systems Inc
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
EPAM Systems, Inc. provides digital platform engineering and software development services in North America, Europe, Russia, Belarus, Kazakhstan, Ukraine, Georgia, East Asia, Southeast Asia, and Australia. The company is headquartered in Newtown, Pennsylvania.
Visit Website →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 →Compare with Other INFORMATION TECHNOLOGY SERVICES Stocks
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