WallStSmart

Monolithic Power Systems Inc (MPWR)vsMicrosoft Corporation (MSFT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 10038% more annual revenue ($331.84B vs $3.27B). MSFT leads profitability with a 40.3% profit margin vs 24.5%. MPWR appears more attractively valued with a PEG of 0.89. MPWR earns a higher WallStSmart Score of 78/100 (B+).

MPWR

Strong Buy

78

out of 100

Grade: B+

Growth: 9.3Profit: 8.5Value: 5.0Quality: 7.8
Piotroski: 4/9Altman Z: 5.86

MSFT

Strong Buy

72

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 5.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.68

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MPWR6 strengths · Avg: 9.7/10
Operating MarginProfitability
31.0%10/10

Strong operational efficiency at 31.0%

Revenue GrowthGrowth
47.6%10/10

Revenue surging 47.6% year-over-year

EPS GrowthGrowth
85.8%10/10

Earnings expanding 85.8% YoY

Altman Z-ScoreHealth
5.8610/10

Safe zone — low bankruptcy risk

Market CapQuality
$60.67B9/10

Large-cap with strong market position

Return on EquityProfitability
20.5%9/10

Every $100 of equity generates 21 in profit

MSFT6 strengths · Avg: 9.8/10
Market CapQuality
$3.68T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
30.2%10/10

Every $100 of equity generates 30 in profit

Profit MarginProfitability
40.3%10/10

Keeps 40 of every $100 in revenue as profit

Operating MarginProfitability
45.1%10/10

Strong operational efficiency at 45.1%

Free Cash FlowQuality
$19.64B10/10

Generating 19.6B in free cash flow

Debt/EquityHealth
0.299/10

Conservative balance sheet, low leverage

Areas to Watch

MPWR2 concerns · Avg: 3.0/10
Price/BookValuation
15.6x4/10

Trading at 15.6x book value

P/E RatioValuation
72.4x2/10

Premium valuation, high expectations priced in

MSFT3 concerns · Avg: 4.0/10
PEG RatioValuation
1.604/10

Expensive relative to growth rate

P/E RatioValuation
27.4x4/10

Moderate valuation

Price/BookValuation
8.5x4/10

Trading at 8.5x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : MPWR

The strongest argument for MPWR centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 24.5% and operating margin at 31.0%. Revenue growth of 47.6% 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 40.3% and operating margin at 45.1%. Revenue growth of 17.7% demonstrates continued momentum.

Bear Case : MPWR

The primary concerns for MPWR are Price/Book, P/E Ratio. A P/E of 72.4x leaves little room for execution misses.

Bear Case : MSFT

The primary concerns for MSFT are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

MPWR carries more volatility with a beta of 1.66 — expect wider price swings.

MPWR is growing revenue faster at 47.6% — sustainability is the question.

MSFT generates stronger free cash flow (19.6B), providing more financial flexibility.

Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MPWR scores higher overall (78/100 vs 72/100), backed by strong 24.5% margins and 47.6% 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.

Monolithic Power Systems Inc

TECHNOLOGY · SEMICONDUCTORS · USA

Monolithic Power Systems, Inc. is an American, publicly traded company headquartered in Kirkland, Washington. The company provides power circuits for systems found in cloud computing, telecom infrastructures, automotive, industrial applications and consumer applications.

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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