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IT vs MSFT

IT
Gartner, Inc.
BEARISH
Price
$150.12
Market Cap
$10.13B
Sector
Technology
AI Confidence
85%
MSFT
Microsoft Corporation
BULLISH
Price
$429.25
Market Cap
$3.19T
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
IT
15.56
MSFT
26.6
Forward P/E
IT
10.2
MSFT
22.68
P/B Ratio
IT
33.25
MSFT
8.16
P/S Ratio
IT
1.56
MSFT
10.44
EV/EBITDA
IT
9.31
MSFT
18.38

Profitability

Gross Margin
IT
68.39%
MSFT
68.59%
Operating Margin
IT
18.98%
MSFT
47.09%
Profit Margin
IT
11.22%
MSFT
39.04%
ROE
IT
86.86%
MSFT
34.39%
ROA
IT
8.86%
MSFT
14.86%

Growth

Revenue Growth
IT
2.2%
MSFT
16.7%
Earnings Growth
IT
-34.2%
MSFT
59.8%

Financial Health

Debt/Equity
IT
10.47
MSFT
0.32
Current Ratio
IT
1.0
MSFT
1.39
Quick Ratio
IT
0.85
MSFT
1.24

Dividends

Dividend Yield
IT
--
MSFT
0.85%
Payout Ratio
IT
0.0%
MSFT
21.28%

AI Verdict

IT BEARISH

Gartner, Inc. (IT) exhibits significant financial instability characterized by a Piotroski F-Score of 4/9 (Stable) and a critical Debt/Equity ratio of 10.47. The stock is trading at a massive premium compared to its Graham Number ($31.31) and Intrinsic Value ($67.55), while experiencing a catastrophic 1-year price decline of 63.9%. Despite a low forward P/E of 10.20, the combination of crashing earnings growth (-34.2% YoY) and extreme leverage makes the current valuation unsustainable.

Strengths
Strong Gross Margins (68.39%)
High Return on Equity (86.86%)
Low Forward P/E ratio (10.20) relative to sector
Risks
Extreme leverage with a Debt/Equity ratio of 10.47
Severe negative earnings growth (-34.2% YoY)
Price is trading significantly above both Graham and Intrinsic value estimates
MSFT BULLISH

Microsoft exhibits strong financial health with a Piotroski F-Score of 7/9, indicating robust operational efficiency and stability. While the stock trades at a significant premium to its Graham Number ($138.23), it remains below its growth-based intrinsic value of $476.13, suggesting reasonable upside. Exceptional earnings growth (59.8% YoY) and elite profit margins (39.04%) outweigh current bearish technical trends and insider selling. The company's consistent track record of beating earnings estimates over 25 quarters reinforces a strong long-term outlook.

Strengths
Strong Piotroski F-Score (7/9) confirming financial health
Exceptional profitability with 47.09% operating margins
Massive earnings growth (59.8% YoY) and consistent EPS beats
Risks
Bearish technical trend (0/100) indicating short-term price pressure
Net bearish insider sentiment with $32.64M in recent sales
High valuation multiples (P/B of 8.16 and P/S of 10.44)

Compare Another Pair

IT vs MSFT: Head-to-Head Comparison

This page compares Gartner, Inc. (IT) 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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