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MSFT vs NRDY

MSFT
Microsoft Corporation
BULLISH
Price
$429.25
Market Cap
$3.19T
Sector
Technology
AI Confidence
85%
NRDY
Nerdy Inc.
BEARISH
Price
$0.89
Market Cap
$220.5M
Sector
Technology
AI Confidence
90%

Valuation

P/E Ratio
MSFT
26.6
NRDY
--
Forward P/E
MSFT
22.68
NRDY
-29.81
P/B Ratio
MSFT
8.16
NRDY
5.81
P/S Ratio
MSFT
10.44
NRDY
1.23
EV/EBITDA
MSFT
18.38
NRDY
-1.81

Profitability

Gross Margin
MSFT
68.59%
NRDY
62.31%
Operating Margin
MSFT
47.09%
NRDY
-12.53%
Profit Margin
MSFT
39.04%
NRDY
-22.3%
ROE
MSFT
34.39%
NRDY
-135.37%
ROA
MSFT
14.86%
NRDY
-39.62%

Growth

Revenue Growth
MSFT
16.7%
NRDY
2.3%
Earnings Growth
MSFT
59.8%
NRDY
--

Financial Health

Debt/Equity
MSFT
0.32
NRDY
0.75
Current Ratio
MSFT
1.39
NRDY
2.27
Quick Ratio
MSFT
1.24
NRDY
2.09

Dividends

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

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)
NRDY BEARISH

NRDY exhibits critical financial weakness, highlighted by a Piotroski F-Score of 1/9, indicating severe deterioration in fundamental health. While the company maintains a strong current ratio (2.27) and healthy gross margins (62.31%), these are offset by a devastating ROE of -135.37% and stagnant revenue growth of only 2.30% YoY. The combination of a bearish technical trend, heavy insider selling, and a 91.4% five-year price collapse suggests a failing growth thesis. Despite beating earnings estimates, the company remains deeply unprofitable with no clear path to positive net income.

Strengths
Strong short-term liquidity with a current ratio of 2.27
Healthy gross profit margins at 62.31%
Consistent track record of beating quarterly earnings estimates (3/4 last 4 quarters)
Risks
Critical financial health as evidenced by a Piotroski F-Score of 1/9
Severe capital inefficiency with an ROE of -135.37%
Stagnant top-line growth (2.30% YoY) for a technology software company

Compare Another Pair

MSFT vs NRDY: Head-to-Head Comparison

This page compares Microsoft Corporation (MSFT) and Nerdy Inc. (NRDY) 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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