WallStSmart

Microsoft Corporation (MSFT)vsWex Inc (WEX)

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Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 11697% more annual revenue ($318.27B vs $2.70B). MSFT leads profitability with a 39.3% profit margin vs 11.5%. WEX appears more attractively valued with a PEG of 0.78. WEX earns a higher WallStSmart Score of 74/100 (B).

MSFT

Strong Buy

72

out of 100

Grade: B

Growth: 8.0Profit: 9.5Value: 5.7Quality: 7.0
Piotroski: 4/9Altman Z: 2.51

WEX

Strong Buy

74

out of 100

Grade: B

Growth: 6.0Profit: 6.5Value: 7.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.66

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MSFT6 strengths · Avg: 9.8/10
Market CapQuality
$3.28T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
30.2%10/10

Every $100 of equity generates 30 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

Debt/EquityHealth
0.149/10

Conservative balance sheet, low leverage

WEX5 strengths · Avg: 8.2/10
Return on EquityProfitability
24.4%9/10

Every $100 of equity generates 24 in profit

PEG RatioValuation
0.788/10

Growing faster than its price suggests

P/E RatioValuation
15.3x8/10

Attractively priced relative to earnings

Operating MarginProfitability
23.5%8/10

Strong operational efficiency at 23.5%

EPS GrowthGrowth
22.7%8/10

Earnings expanding 22.7% YoY

Areas to Watch

MSFT1 concerns · Avg: 4.0/10
P/E RatioValuation
26.3x4/10

Moderate valuation

WEX4 concerns · Avg: 2.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-368.30M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.662/10

Distress zone — elevated risk

Debt/EquityHealth
4.111/10

Elevated debt levels

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 : WEX

The strongest argument for WEX centers on Return on Equity, PEG Ratio, P/E Ratio. PEG of 0.78 suggests the stock is reasonably priced for its growth.

Bear Case : MSFT

The primary concerns for MSFT are P/E Ratio.

Bear Case : WEX

The primary concerns for WEX are Piotroski F-Score, Free Cash Flow, Altman Z-Score. Debt-to-equity of 4.11 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

MSFT carries more volatility with a beta of 1.09 — 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

WEX scores higher overall (74/100 vs 72/100). 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.

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Wex Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

WEX Inc. offers financial technology services in North America, Asia Pacific, and Europe. The company is headquartered in Portland, Maine.

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