WallStSmart

Innodata Inc (INOD)vsMicrosoft Corporation (MSFT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 112199% more annual revenue ($318.27B vs $283.42M). MSFT leads profitability with a 39.3% profit margin vs 13.9%. INOD appears more attractively valued with a PEG of 0.87. MSFT earns a higher WallStSmart Score of 72/100 (B).

INOD

Strong Buy

67

out of 100

Grade: B-

Growth: 10.0Profit: 8.5Value: 5.0Quality: 8.0
Piotroski: 3/9Altman Z: 4.38

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

INOD6 strengths · Avg: 9.7/10
Return on EquityProfitability
30.6%10/10

Every $100 of equity generates 31 in profit

Revenue GrowthGrowth
54.4%10/10

Revenue surging 54.4% year-over-year

EPS GrowthGrowth
90.9%10/10

Earnings expanding 90.9% YoY

Debt/EquityHealth
0.0310/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.3810/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.878/10

Growing faster than its price suggests

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

INOD3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
93.7x2/10

Premium valuation, high expectations priced in

Price/BookValuation
30.9x2/10

Trading at 30.9x book value

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

Moderate valuation

Comparative Analysis Report

WallStSmart Research

Bull Case : INOD

The strongest argument for INOD centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 54.4% demonstrates continued momentum. PEG of 0.87 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 : INOD

The primary concerns for INOD are Piotroski F-Score, P/E Ratio, Price/Book. A P/E of 93.7x leaves little room for execution misses.

Bear Case : MSFT

The primary concerns for MSFT are P/E Ratio.

Key Dynamics to Monitor

INOD carries more volatility with a beta of 2.40 — expect wider price swings.

INOD is growing revenue faster at 54.4% — sustainability is the question.

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

Monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MSFT scores higher overall (72/100 vs 67/100), 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.

Innodata Inc

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Innodata Inc. is a global data engineering company in the United States, the United Kingdom, the Netherlands, Canada, and internationally. The company is headquartered in Ridgefield Park, New Jersey.

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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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