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AMBA vs MSFT

AMBA
Ambarella, Inc.
BEARISH
Price
$52.29
Market Cap
$2.25B
Sector
Technology
AI Confidence
85%
MSFT
Microsoft Corporation
BULLISH
Price
$370.17
Market Cap
$2.75T
Sector
Technology
AI Confidence
40%

Valuation

P/E Ratio
AMBA
--
MSFT
23.18
Forward P/E
AMBA
48.14
MSFT
19.64
P/B Ratio
AMBA
3.8
MSFT
7.04
P/S Ratio
AMBA
5.76
MSFT
9.01
EV/EBITDA
AMBA
-30.38
MSFT
15.88

Profitability

Gross Margin
AMBA
59.97%
MSFT
68.59%
Operating Margin
AMBA
-17.07%
MSFT
47.09%
Profit Margin
AMBA
-19.42%
MSFT
39.04%
ROE
AMBA
-13.12%
MSFT
34.39%
ROA
AMBA
-6.53%
MSFT
14.86%

Growth

Revenue Growth
AMBA
20.1%
MSFT
16.7%
Earnings Growth
AMBA
--
MSFT
59.8%

Financial Health

Debt/Equity
AMBA
0.02
MSFT
0.32
Current Ratio
AMBA
2.31
MSFT
1.39
Quick Ratio
AMBA
1.98
MSFT
1.24

Dividends

Dividend Yield
AMBA
--
MSFT
1.01%
Payout Ratio
AMBA
0.0%
MSFT
21.28%

AI Verdict

AMBA BEARISH

Ambarella (AMBA) exhibits weak financial health per the Piotroski F-Score of 4/9, indicating a fragile operational foundation despite modest growth. The company trades at a high forward P/E of 48.14 and a price/sales ratio of 5.76, significantly above sector averages, suggesting overvaluation. While revenue growth is strong at 20.1% YoY and earnings surprises have been positive in recent quarters, profitability remains deeply negative with a -19.42% profit margin and negative ROE/ROA. Insider selling activity totaling $6.52M over six months signals bearish sentiment from within the company. The absence of a Graham Number and intrinsic value estimate further limits fundamental valuation clarity.

Strengths
Strong revenue growth of 20.1% YoY
Consistently positive earnings surprises in the last 4 quarters (average +77.78%)
High gross margin of 59.97% indicates pricing power and efficient production
Risks
Piotroski F-Score of 4/9 indicates weak financial health and operational instability
Negative profit margin (-19.42%) and ROE (-13.12%) suggest ongoing profitability challenges
Insider selling of $6.52M in last 6 months reflects bearish internal sentiment
MSFT BULLISH

MSFT shows bullish fundamentals based on deterministic rules. Financial strength is strong (F-Score 7/9). Key strengths include strong valuation and growth metrics.

Strengths
Strong profitability (39.0% margin)
Strong financial trend (Piotroski F-Score: 7/9)
Strong revenue growth of 16.7%
Risks
Premium vs Graham Number ($137.5)

Compare Another Pair

AMBA vs MSFT: Head-to-Head Comparison

This page compares Ambarella, Inc. (AMBA) and Microsoft Corporation (MSFT) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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