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MSFT vs MSI

MSFT
Microsoft Corporation
BULLISH
Price
$429.25
Market Cap
$3.19T
Sector
Technology
AI Confidence
85%
MSI
Motorola Solutions, Inc.
NEUTRAL
Price
$429.23
Market Cap
$71.34B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
MSFT
26.6
MSI
33.67
Forward P/E
MSFT
22.68
MSI
23.51
P/B Ratio
MSFT
8.16
MSI
29.51
P/S Ratio
MSFT
10.44
MSI
6.11
EV/EBITDA
MSFT
18.38
MSI
22.63

Profitability

Gross Margin
MSFT
68.59%
MSI
51.8%
Operating Margin
MSFT
47.09%
MSI
27.81%
Profit Margin
MSFT
39.04%
MSI
18.44%
ROE
MSFT
34.39%
MSI
104.2%
ROA
MSFT
14.86%
MSI
11.39%

Growth

Revenue Growth
MSFT
16.7%
MSI
12.3%
Earnings Growth
MSFT
59.8%
MSI
8.6%

Financial Health

Debt/Equity
MSFT
0.32
MSI
4.02
Current Ratio
MSFT
1.39
MSI
1.04
Quick Ratio
MSFT
1.24
MSI
0.82

Dividends

Dividend Yield
MSFT
0.85%
MSI
1.13%
Payout Ratio
MSFT
21.28%
MSI
35.14%

AI Verdict

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)
MSI NEUTRAL

MSI exhibits a stable financial health profile with a Piotroski F-Score of 4/9, though it is heavily burdened by significant leverage. While the company demonstrates operational excellence with a 25-quarter streak of earnings beats and strong operating margins (27.81%), it trades at a massive premium to its Graham Number ($64.59) and Intrinsic Value ($253.72). The exceptional ROE of 104.20% is likely a function of high debt rather than organic efficiency. Consequently, the stock is a high-quality business currently trading at a speculative valuation.

Strengths
Exceptional earnings track record with beats in nearly every quarter over the last 6 years
Strong profitability with a 51.80% gross margin and 27.81% operating margin
Consistent double-digit revenue growth (12.30% YoY)
Risks
Extreme leverage with a Debt/Equity ratio of 4.02
Severe overvaluation relative to book value (Price/Book of 29.51)
High PEG ratio (2.38) suggesting the price has outpaced earnings growth

Compare Another Pair

MSFT vs MSI: Head-to-Head Comparison

This page compares Microsoft Corporation (MSFT) and Motorola Solutions, Inc. (MSI) 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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