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MSFT vs OOMA

MSFT
Microsoft Corporation
BULLISH
Price
$429.25
Market Cap
$3.19T
Sector
Technology
AI Confidence
85%
OOMA
Ooma, Inc.
BEARISH
Price
$16.32
Market Cap
$448.4M
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
MSFT
26.6
OOMA
70.96
Forward P/E
MSFT
22.68
OOMA
11.41
P/B Ratio
MSFT
8.16
OOMA
4.84
P/S Ratio
MSFT
10.44
OOMA
1.64
EV/EBITDA
MSFT
18.38
OOMA
29.72

Profitability

Gross Margin
MSFT
68.59%
OOMA
61.13%
Operating Margin
MSFT
47.09%
OOMA
4.22%
Profit Margin
MSFT
39.04%
OOMA
2.36%
ROE
MSFT
34.39%
OOMA
7.25%
ROA
MSFT
14.86%
OOMA
1.95%

Growth

Revenue Growth
MSFT
16.7%
OOMA
14.6%
Earnings Growth
MSFT
59.8%
OOMA
--

Financial Health

Debt/Equity
MSFT
0.32
OOMA
0.79
Current Ratio
MSFT
1.39
OOMA
0.93
Quick Ratio
MSFT
1.24
OOMA
0.45

Dividends

Dividend Yield
MSFT
0.85%
OOMA
--
Payout Ratio
MSFT
21.28%
OOMA
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)
OOMA BEARISH

OOMA exhibits a stable but mediocre Piotroski F-Score of 4/9, while its current price of $16.32 trades at a massive premium compared to its Graham Number ($4.18) and Intrinsic Value ($1.61). Despite strong short-term price momentum and consistent earnings beats, the company faces significant liquidity risks with a Current Ratio of 0.93 and a Quick Ratio of 0.45. Fundamental deterioration is evident in the negative YoY EPS growth (-33.3%) and bearish insider activity from the CEO and CFO. The extreme P/E ratio of 70.96 suggests the stock is heavily overvalued based on current earnings power.

Strengths
Strong gross margins of 61.13%
Consistent track record of beating quarterly earnings estimates
Positive YoY revenue growth of 14.60%
Risks
Severe valuation gap between market price and defensive fair value (Graham Number)
Liquidity concerns with a Current Ratio below 1.0 (0.93)
Negative earnings growth trends (YoY EPS down 33.3%)

Compare Another Pair

MSFT vs OOMA: Head-to-Head Comparison

This page compares Microsoft Corporation (MSFT) and Ooma, Inc. (OOMA) 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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