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MSFT vs POWI

MSFT
Microsoft Corporation
BULLISH
Price
$374.33
Market Cap
$2.78T
Sector
Technology
AI Confidence
85%
POWI
Power Integrations, Inc.
NEUTRAL
Price
$56.05
Market Cap
$3.11B
Sector
Technology
AI Confidence
90%

Valuation

P/E Ratio
MSFT
23.42
POWI
143.72
Forward P/E
MSFT
19.86
POWI
30.44
P/B Ratio
MSFT
7.11
POWI
4.61
P/S Ratio
MSFT
9.11
POWI
7.01
EV/EBITDA
MSFT
16.05
POWI
58.17

Profitability

Gross Margin
MSFT
68.59%
POWI
54.49%
Operating Margin
MSFT
47.09%
POWI
19.45%
Profit Margin
MSFT
39.04%
POWI
4.98%
ROE
MSFT
34.39%
POWI
3.11%
ROA
MSFT
14.86%
POWI
1.68%

Growth

Revenue Growth
MSFT
16.7%
POWI
-1.9%
Earnings Growth
MSFT
59.8%
POWI
44.7%

Financial Health

Debt/Equity
MSFT
0.32
POWI
0.03
Current Ratio
MSFT
1.39
POWI
6.51
Quick Ratio
MSFT
1.24
POWI
3.84

Dividends

Dividend Yield
MSFT
0.97%
POWI
1.53%
Payout Ratio
MSFT
21.28%
POWI
215.38%

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
POWI NEUTRAL

POWI exhibits exceptional financial health with a Piotroski F-Score of 8/9 and a near-zero debt-to-equity ratio (0.03), indicating a fortress balance sheet. However, the stock is severely overvalued relative to deterministic baselines, trading at $56.05 against a Graham Number of $10.33 and an Intrinsic Value of $11.51. While forward P/E (30.44) suggests a recovery in earnings power, the current dividend payout ratio of 215.38% is unsustainable. The divergence between strong internal health and poor valuation/insider sentiment results in a neutral outlook.

Strengths
Strong Piotroski F-Score (8/9) indicating high operational efficiency
Exceptional liquidity with a Current Ratio of 6.51
Negligible debt burden (Debt/Equity 0.03)
Risks
Extreme valuation premium (Price is ~5x the Graham Number)
Unsustainable dividend payout ratio (215.38%)
Negative revenue growth (-1.90% YoY) suggesting stagnation in top-line demand

Compare Another Pair

MSFT vs POWI: Head-to-Head Comparison

This page compares Microsoft Corporation (MSFT) and Power Integrations, Inc. (POWI) 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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