WallStSmart

Microsoft Corporation (MSFT)vsD-Wave Quantum Inc. (QBTS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 1242235% more annual revenue ($305.45B vs $24.59M). MSFT leads profitability with a 39.0% profit margin vs 0.0%. MSFT earns a higher WallStSmart Score of 74/100 (B).

MSFT

Strong Buy

74

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 7.3Quality: 6.5
Piotroski: 4/9Altman Z: 2.51

QBTS

Avoid

25

out of 100

Grade: F

Growth: 7.3Profit: 2.5Value: 5.0Quality: 7.0
Piotroski: 5/9Altman Z: -8.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MSFTUndervalued (+43.8%)

Margin of Safety

+43.8%

Fair Value

$752.08

Current Price

$422.79

$329.29 discount

UndervaluedFair: $752.08Overvalued

Intrinsic value data unavailable for QBTS.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MSFT6 strengths · Avg: 9.7/10
Market CapQuality
$3.14T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.4%10/10

Every $100 of equity generates 34 in profit

Profit MarginProfitability
39.0%10/10

Keeps 39 of every $100 in revenue as profit

Operating MarginProfitability
47.1%10/10

Strong operational efficiency at 47.1%

EPS GrowthGrowth
59.8%10/10

Earnings expanding 59.8% YoY

Revenue GrowthGrowth
16.7%8/10

16.7% revenue growth

QBTS2 strengths · Avg: 9.0/10
Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
19.2%8/10

19.2% revenue growth

Areas to Watch

MSFT2 concerns · Avg: 4.0/10
P/E RatioValuation
26.3x4/10

Moderate valuation

Price/BookValuation
8.0x4/10

Trading at 8.0x book value

QBTS4 concerns · Avg: 3.3/10
Price/BookValuation
9.1x4/10

Trading at 9.1x book value

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

Return on EquityProfitability
-77.6%2/10

ROE of -77.6% — below average capital efficiency

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 39.0% and operating margin at 47.1%. Revenue growth of 16.7% demonstrates continued momentum.

Bull Case : QBTS

The strongest argument for QBTS centers on Debt/Equity, Revenue Growth. Revenue growth of 19.2% demonstrates continued momentum.

Bear Case : MSFT

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

Bear Case : QBTS

The primary concerns for QBTS are Price/Book, EPS Growth, Profit Margin.

Key Dynamics to Monitor

QBTS carries more volatility with a beta of 1.77 — expect wider price swings.

QBTS is growing revenue faster at 19.2% — sustainability is the question.

MSFT generates stronger free cash flow (5.9B), providing more financial flexibility.

Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MSFT scores higher overall (74/100 vs 25/100), backed by strong 39.0% margins and 16.7% revenue growth. 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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D-Wave Quantum Inc.

TECHNOLOGY · COMPUTER HARDWARE · USA

D-Wave Quantum Inc. develops and offers quantum computing systems, software and services worldwide. The company is headquartered in Burnaby, Canada.

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