WallStSmart

Microsoft Corporation (MSFT)vsParsons Corp (PSN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 5173% more annual revenue ($331.84B vs $6.29B). MSFT leads profitability with a 40.3% profit margin vs 2.5%. MSFT trades at a lower P/E of 26.2x. MSFT earns a higher WallStSmart Score of 72/100 (B).

MSFT

Strong Buy

72

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 5.0Quality: 6.5
Piotroski: 4/9Altman Z: 2.51

PSN

Hold

41

out of 100

Grade: D

Growth: 4.0Profit: 5.0Value: 3.7Quality: 6.5
Piotroski: 4/9Altman Z: 2.30
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for MSFT.

PSNSignificantly Overvalued (-28.4%)

Margin of Safety

-28.4%

Fair Value

$46.91

Current Price

$47.55

$0.64 premium

UndervaluedFair: $46.91Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MSFT6 strengths · Avg: 9.7/10
Market CapQuality
$3.66T10/10

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
$15.80B10/10

Generating 15.8B in free cash flow

Revenue GrowthGrowth
17.7%8/10

17.7% revenue growth

PSN1 strengths · Avg: 8.0/10
Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

MSFT3 concerns · Avg: 4.0/10
PEG RatioValuation
1.524/10

Expensive relative to growth rate

P/E RatioValuation
26.2x4/10

Moderate valuation

Price/BookValuation
8.4x4/10

Trading at 8.4x book value

PSN4 concerns · Avg: 3.0/10
P/E RatioValuation
30.5x4/10

Premium valuation, high expectations priced in

Profit MarginProfitability
2.5%3/10

2.5% margin — thin

Operating MarginProfitability
2.2%3/10

Operating margin of 2.2%

Revenue GrowthGrowth
-0.5%2/10

Revenue declined 0.5%

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 40.3% and operating margin at 45.1%. Revenue growth of 17.7% demonstrates continued momentum.

Bull Case : PSN

The strongest argument for PSN centers on Price/Book.

Bear Case : MSFT

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

Bear Case : PSN

The primary concerns for PSN are P/E Ratio, Profit Margin, Operating Margin. Thin 2.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

MSFT profiles as a growth stock while PSN is a value play — different risk/reward profiles.

MSFT carries more volatility with a beta of 1.10 — expect wider price swings.

MSFT is growing revenue faster at 17.7% — 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 41/100), backed by strong 40.3% margins and 17.7% 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.

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 →

Parsons Corp

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Parsons Corporation provides technology-based solutions in defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. The company is headquartered in Centreville, Virginia.

Want to dig deeper into these stocks?