WallStSmart

Microsoft Corporation (MSFT)vsWex Inc (WEX)

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Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 11785% more annual revenue ($331.84B vs $2.79B). MSFT leads profitability with a 40.3% profit margin vs 12.6%. WEX appears more attractively valued with a PEG of 1.03. WEX earns a higher WallStSmart Score of 73/100 (B).

MSFT

Strong Buy

72

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 5.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.68

WEX

Strong Buy

73

out of 100

Grade: B

Growth: 6.7Profit: 7.0Value: 5.7Quality: 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
$3.68T10/10

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
$19.64B10/10

Generating 19.6B in free cash flow

Debt/EquityHealth
0.299/10

Conservative balance sheet, low leverage

WEX3 strengths · Avg: 9.0/10
EPS GrowthGrowth
57.1%10/10

Earnings expanding 57.1% YoY

Return on EquityProfitability
24.4%9/10

Every $100 of equity generates 24 in profit

Operating MarginProfitability
26.9%8/10

Strong operational efficiency at 26.9%

Areas to Watch

MSFT3 concerns · Avg: 4.0/10
PEG RatioValuation
1.604/10

Expensive relative to growth rate

P/E RatioValuation
27.4x4/10

Moderate valuation

Price/BookValuation
8.3x4/10

Trading at 8.3x book value

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

Weak financial health signals

Free Cash FlowQuality
$-121.10M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.662/10

Distress zone — elevated risk

Debt/EquityHealth
3.981/10

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

Bull Case : WEX

The strongest argument for WEX centers on EPS Growth, Return on Equity, Operating Margin. Revenue growth of 14.2% demonstrates continued momentum. PEG of 1.03 suggests the stock is reasonably priced for its growth.

Bear Case : MSFT

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

Bear Case : WEX

The primary concerns for WEX are Piotroski F-Score, Free Cash Flow, Altman Z-Score. Debt-to-equity of 3.98 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 1.11 — expect wider price swings.

MSFT is growing revenue faster at 17.7% — sustainability is the question.

MSFT generates stronger free cash flow (19.6B), providing more financial flexibility.

Bottom Line

WEX scores higher overall (73/100 vs 72/100) and 14.2% 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.

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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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