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MSFT vs NVEC

MSFT
Microsoft Corporation
BULLISH
Price
$374.33
Market Cap
$2.78T
Sector
Technology
AI Confidence
85%
NVEC
NVE Corporation
NEUTRAL
Price
$78.83
Market Cap
$381.3M
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
MSFT
23.42
NVEC
26.28
Forward P/E
MSFT
19.86
NVEC
27.86
P/B Ratio
MSFT
7.11
NVEC
6.54
P/S Ratio
MSFT
9.11
NVEC
14.7
EV/EBITDA
MSFT
16.05
NVEC
22.91

Profitability

Gross Margin
MSFT
68.59%
NVEC
79.15%
Operating Margin
MSFT
47.09%
NVEC
60.15%
Profit Margin
MSFT
39.04%
NVEC
54.59%
ROE
MSFT
34.39%
NVEC
23.36%
ROA
MSFT
14.86%
NVEC
15.49%

Growth

Revenue Growth
MSFT
16.7%
NVEC
22.9%
Earnings Growth
MSFT
59.8%
NVEC
11.1%

Financial Health

Debt/Equity
MSFT
0.32
NVEC
0.02
Current Ratio
MSFT
1.39
NVEC
34.84
Quick Ratio
MSFT
1.24
NVEC
26.47

Dividends

Dividend Yield
MSFT
0.97%
NVEC
5.22%
Payout Ratio
MSFT
21.28%
NVEC
136.99%

AI Verdict

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
NVEC NEUTRAL

NVEC presents a dichotomy of pristine operational efficiency and concerning valuation/dividend sustainability. While the Piotroski F-Score of 4/9 indicates stable health and the balance sheet is exceptionally strong with negligible debt and massive liquidity, the stock is significantly overvalued relative to its Graham Number ($28.52). The most critical concern is the unsustainable dividend payout ratio of 136.99%, which suggests the current yield is not supported by earnings. Despite strong margins and revenue growth, bearish insider sentiment and technical trends suggest a potential price correction.

Strengths
Exceptional profitability with a 79.15% gross margin and 54.59% profit margin
Virtually debt-free balance sheet (Debt/Equity of 0.02)
Extreme liquidity with a current ratio of 34.84
Risks
Unsustainable dividend payout ratio (136.99%)
Significant overvaluation relative to defensive fair value (Graham Number)
Very high Price-to-Sales ratio (14.70) for the semiconductor industry

Compare Another Pair

MSFT vs NVEC: Head-to-Head Comparison

This page compares Microsoft Corporation (MSFT) and NVE Corporation (NVEC) 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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