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LGL vs MSFT

LGL
The LGL Group, Inc.
BEARISH
Price
$7.28
Market Cap
$47.6M
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
LGL
66.14
MSFT
26.6
Forward P/E
LGL
31.63
MSFT
22.68
P/B Ratio
LGL
1.03
MSFT
8.16
P/S Ratio
LGL
11.41
MSFT
10.44
EV/EBITDA
LGL
29.64
MSFT
18.38

Profitability

Gross Margin
LGL
72.3%
MSFT
68.59%
Operating Margin
LGL
9.76%
MSFT
47.09%
Profit Margin
LGL
16.5%
MSFT
39.04%
ROE
LGL
1.74%
MSFT
34.39%
ROA
LGL
0.35%
MSFT
14.86%

Growth

Revenue Growth
LGL
5.4%
MSFT
16.7%
Earnings Growth
LGL
--
MSFT
59.8%

Financial Health

Debt/Equity
LGL
0.01
MSFT
0.32
Current Ratio
LGL
50.63
MSFT
1.39
Quick Ratio
LGL
50.02
MSFT
1.24

Dividends

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

AI Verdict

LGL BEARISH

LGL exhibits significant fundamental weakness, highlighted by a weak Piotroski F-Score of 3/9 and a current price ($7.28) that trades at a massive premium to both its Graham Number ($4.19) and Intrinsic Value ($0.77). While the company maintains an exceptionally clean balance sheet with virtually no debt and extreme liquidity, its operational efficiency is poor, evidenced by very low ROE (1.74%) and a dismal earnings track record. The stock appears to be priced for growth that is not supported by its current 5.4% revenue growth or its consistent failure to meet earnings estimates.

Strengths
Exceptional gross margins of 72.30%
Virtually debt-free with a Debt/Equity ratio of 0.01
Extreme short-term liquidity (Current Ratio of 50.63)
Risks
Severe overvaluation relative to intrinsic value ($0.77) and Graham Number ($4.19)
Consistent earnings misses (0/4 beats in the last 4 quarters)
Very poor capital efficiency (ROE of 1.74% and ROA of 0.35%)
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

LGL vs MSFT: Head-to-Head Comparison

This page compares The LGL Group, Inc. (LGL) 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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