Microsoft Corporation (MSFT)vsTE Connectivity Ltd (TEL)
MSFT
Microsoft Corporation
$530.61
-0.99%
TECHNOLOGY · Cap: $3.88T
TEL
TE Connectivity Ltd
$206.99
+0.32%
TECHNOLOGY · Cap: $61.25B
Smart Verdict
WallStSmart Research — data-driven comparison
Microsoft Corporation generates 1642% more annual revenue ($346.44B vs $19.89B). MSFT leads profitability with a 41.2% profit margin vs 16.4%. TEL appears more attractively valued with a PEG of 1.23. TEL earns a higher WallStSmart Score of 76/100 (B+).
MSFT
Strong Buy72
out of 100
Grade: B
TEL
Strong Buy76
out of 100
Grade: B+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 30 in profit
Keeps 41 of every $100 in revenue as profit
Strong operational efficiency at 49.8%
Generating 18.6B in free cash flow
Conservative balance sheet, low leverage
Large-cap with strong market position
Every $100 of equity generates 24 in profit
Strong operational efficiency at 21.1%
Earnings expanding 39.1% YoY
Generating 1.2B in free cash flow
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 8.4x book value
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull Case : MSFT
The strongest argument for MSFT centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 41.2% and operating margin at 49.8%. Revenue growth of 18.8% demonstrates continued momentum.
Bull Case : TEL
The strongest argument for TEL centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 16.4% and operating margin at 21.1%. Revenue growth of 11.9% demonstrates continued momentum.
Bear Case : MSFT
The primary concerns for MSFT are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : TEL
No major red flags identified for TEL, but monitor valuation.
Key Dynamics to Monitor
MSFT profiles as a growth stock while TEL is a mature play — different risk/reward profiles.
TEL carries more volatility with a beta of 1.14 — expect wider price swings.
MSFT is growing revenue faster at 18.8% — sustainability is the question.
MSFT generates stronger free cash flow (18.6B), providing more financial flexibility.
Bottom Line
TEL scores higher overall (76/100 vs 72/100), backed by strong 16.4% margins and 11.9% 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.
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 →TE Connectivity Ltd
TECHNOLOGY · ELECTRONIC COMPONENTS · USA
TE Connectivity is an American Swiss-domiciled technology company that designs and manufactures connectors and sensors for several industries, such as automotive, industrial equipment, data communication systems, aerospace, defense, medical, oil and gas, consumer electronics and energy.
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