Microsoft Corporation (MSFT)vsTeradyne Inc (TER)
MSFT
Microsoft Corporation
$499.99
+0.03%
TECHNOLOGY · Cap: $3.66T
TER
Teradyne Inc
$379.31
-1.45%
TECHNOLOGY · Cap: $63.09B
Smart Verdict
WallStSmart Research — data-driven comparison
Microsoft Corporation generates 7334% more annual revenue ($331.84B vs $4.46B). MSFT leads profitability with a 40.3% profit margin vs 25.8%. TER appears more attractively valued with a PEG of 0.94. TER earns a higher WallStSmart Score of 79/100 (B+).
MSFT
Strong Buy72
out of 100
Grade: B
TER
Strong Buy79
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 40 of every $100 in revenue as profit
Strong operational efficiency at 45.1%
Generating 15.8B in free cash flow
17.7% revenue growth
Strong operational efficiency at 33.2%
Revenue surging 103.9% year-over-year
Earnings expanding 385.8% YoY
Conservative balance sheet, low leverage
Generating 506.4B in free cash flow
Large-cap with strong market position
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 8.4x book value
Trading at 17.3x book value
ROE of 0.0% — below average capital efficiency
Premium valuation, high expectations priced in
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 40.3% and operating margin at 45.1%. Revenue growth of 17.7% demonstrates continued momentum.
Bull Case : TER
The strongest argument for TER centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 25.8% and operating margin at 33.2%. Revenue growth of 103.9% demonstrates continued momentum.
Bear Case : MSFT
The primary concerns for MSFT are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : TER
The primary concerns for TER are Price/Book, Return on Equity, P/E Ratio. A P/E of 55.4x leaves little room for execution misses.
Key Dynamics to Monitor
TER carries more volatility with a beta of 1.79 — expect wider price swings.
TER is growing revenue faster at 103.9% — sustainability is the question.
TER generates stronger free cash flow (506.4B), providing more financial flexibility.
Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TER scores higher overall (79/100 vs 72/100), backed by strong 25.8% margins and 103.9% 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 →Teradyne Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Teradyne, Inc. is an American automatic test equipment (ATE) designer and manufacturer based in North Reading, Massachusetts.
Visit Website →Compare with Other SOFTWARE - INFRASTRUCTURE Stocks
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