WallStSmart

Microsoft Corporation (MSFT)vsNerdy Inc (NRDY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 177718% more annual revenue ($318.27B vs $178.99M). MSFT leads profitability with a 39.3% profit margin vs -22.3%. MSFT earns a higher WallStSmart Score of 72/100 (B).

MSFT

Strong Buy

72

out of 100

Grade: B

Growth: 8.0Profit: 9.5Value: 4.7Quality: 6.5
Piotroski: 4/9Altman Z: 2.51

NRDY

Avoid

22

out of 100

Grade: F

Growth: 4.0Profit: 2.0Value: 6.7Quality: 3.8
Piotroski: 2/9Altman Z: -7.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MSFTSignificantly Overvalued (-70.9%)

Margin of Safety

-70.9%

Fair Value

$238.57

Current Price

$407.78

$169.21 premium

UndervaluedFair: $238.57Overvalued
NRDYUndervalued (+79.9%)

Margin of Safety

+79.9%

Fair Value

$4.98

Current Price

$0.90

$4.08 discount

UndervaluedFair: $4.98Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

NRDY0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

MSFT0 concerns · Avg: 0/10

No major concerns identified

NRDY4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
2.3%4/10

2.3% revenue growth

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$221.86M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : NRDY

NRDY has a balanced fundamental profile.

Bear Case : MSFT

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

Bear Case : NRDY

The primary concerns for NRDY are Revenue Growth, EPS Growth, Market Cap.

Key Dynamics to Monitor

MSFT profiles as a growth stock while NRDY is a turnaround play — different risk/reward profiles.

NRDY carries more volatility with a beta of 1.85 — 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 22/100), backed by strong 39.3% margins and 18.3% revenue growth. NRDY offers better value entry with a 79.9% margin of safety. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

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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Nerdy Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Nerdy Inc. is a prominent online learning platform, best known for its flagship brand, Varsity Tutors, which delivers personalized educational experiences through advanced technology. The company provides an extensive range of services, including individual tutoring and small group classes, targeting a diverse clientele across various subjects and educational levels. With a strong emphasis on data analytics to enhance learning effectiveness, Nerdy is well-equipped to capitalize on the expanding online education sector. Committed to improving accessibility and empowering students with innovative solutions, Nerdy Inc. is poised to play a transformative role in the future of education.

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