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CWAN vs MSFT

CWAN
Clearwater Analytics Holdings, Inc.
BEARISH
Price
$24.15
Market Cap
$7.19B
Sector
Technology
AI Confidence
85%
MSFT
Microsoft Corporation
BULLISH
Price
$374.33
Market Cap
$2.78T
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
CWAN
--
MSFT
23.42
Forward P/E
CWAN
27.2
MSFT
19.86
P/B Ratio
CWAN
3.48
MSFT
7.11
P/S Ratio
CWAN
9.83
MSFT
9.11
EV/EBITDA
CWAN
91.12
MSFT
16.05

Profitability

Gross Margin
CWAN
67.29%
MSFT
68.59%
Operating Margin
CWAN
-3.1%
MSFT
47.09%
Profit Margin
CWAN
-5.31%
MSFT
39.04%
ROE
CWAN
-2.63%
MSFT
34.39%
ROA
CWAN
0.03%
MSFT
14.86%

Growth

Revenue Growth
CWAN
72.0%
MSFT
16.7%
Earnings Growth
CWAN
--
MSFT
59.8%

Financial Health

Debt/Equity
CWAN
0.42
MSFT
0.32
Current Ratio
CWAN
1.83
MSFT
1.39
Quick Ratio
CWAN
1.63
MSFT
1.24

Dividends

Dividend Yield
CWAN
--
MSFT
0.97%
Payout Ratio
CWAN
0.0%
MSFT
21.28%

AI Verdict

CWAN BEARISH

CWAN exhibits a critical disconnect between explosive top-line growth and fundamental financial health, evidenced by a weak Piotroski F-Score of 2/9. While revenue growth is an impressive 72% YoY, the valuation is severely stretched with a PEG ratio of 10.15 and a Price/Sales ratio of 9.83. This fundamental weakness is compounded by aggressive insider selling from the CEO, CFO, and CTO, and a bearish technical trend. Despite a consistent track record of earnings beats, the lack of GAAP profitability and poor deterministic health scores suggest the stock is significantly overvalued.

Strengths
Exceptional revenue growth of 72% YoY
Strong gross margins at 67.29%
Consistent history of beating quarterly earnings estimates
Risks
Very weak financial health (Piotroski F-Score 2/9)
Extreme valuation stretch (PEG Ratio 10.15)
Negative profit margins (-5.31%) and ROE (-2.63%)
MSFT BULLISH

Microsoft exhibits strong fundamental health with a Piotroski F-Score of 7/9, indicating robust financial stability. While the stock is currently experiencing a severe technical downtrend (0/100) and significant 6-month price depreciation (-28.6%), the current price of $374.33 sits well below the growth-based intrinsic value of $471.41 and the analyst target of $587.31. Exceptional earnings growth (59.8% YoY) and high operating margins (47.09%) suggest that the current price correction presents a value opportunity despite bearish insider sentiment.

Strengths
Strong financial health evidenced by a Piotroski F-Score of 7/9
Exceptional profitability with a 39.04% profit margin and 47.09% operating margin
Robust earnings growth (59.8% YoY) and consistent history of beating estimates
Risks
Severe short-term technical bearishness (0/100 trend score)
Bearish insider activity with $32.64M in net sales over the last 6 months
High Price-to-Book ratio (7.11) indicating a premium over book value

Compare Another Pair

CWAN vs MSFT: Head-to-Head Comparison

This page compares Clearwater Analytics Holdings, Inc. (CWAN) 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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