Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In today's rapidly changing and fiercely competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies. In this article, we will conduct a comprehensive industry comparison, evaluating Microsoft (NASDAQ:MSFT) against its key competitors in the Software industry. By examining key financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within the industry.
Microsoft Background Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).
| Microsoft Corp | 38.04 | 13.12 | 13.80 | 9.53% | $33.39 | $42.4 | 17.58% |
| Oracle Corp | 33.14 | 61.40 | 6.73 | 50.61% | $5.3 | $9.41 | 7.11% |
| ServiceNow Inc | 90.55 | 20.49 | 17.47 | 3.98% | $0.51 | $1.92 | 25.62% |
| Palo Alto Networks Inc | 43.95 | 21.05 | 13.26 | 53.52% | $0.21 | $1.48 | 19.33% |
| CrowdStrike Holdings Inc | 866.46 | 33.66 | 25.56 | 2.48% | $0.12 | $0.64 | 32.63% |
| Gen Digital Inc | 10.14 | 5.90 | 3.81 | 5.96% | $0.47 | $0.77 | 1.6% |
| Dolby Laboratories Inc | 43.63 | 3.41 | 6.40 | 2.85% | $0.09 | $0.28 | -5.78% |
| Qualys Inc | 41.41 | 16.76 | 11.32 | 11.75% | $0.05 | $0.12 | 10.49% |
| Teradata Corp | 63.39 | 27.98 | 2.16 | -5.45% | $0.06 | $0.28 | 1.11% |
| N-able Inc | 100.54 | 3.39 | 5.76 | 1.35% | $0.03 | $0.09 | 13.22% |
| Progress Software Corp | 33.96 | 5.01 | 3.43 | 3.39% | $0.05 | $0.14 | 12.63% |
| Average | 132.72 | 19.9 | 9.59 | 13.04% | $0.69 | $1.51 | 11.8% |
th, td { padding: 8px; text-align: left; }
th { background-color: #293a5a; color: #fff; text-align: left; }
tr:nth-child(even) { background-color: #f2f4f8; }
tr:hover { background-color: #e1e4ea; }
td:nth-child(3), td:nth-child(5) { text-align: left; }
.dividend-amount { font-weight: bold; color: #0d6efd; }
.dividend-frequency { font-size: 12px; color: #6c757d; } When closely examining Microsoft, the following trends emerge:
- A Price to Earnings ratio of 38.04 significantly below the industry average by 0.29x suggests undervaluation. This can make the stock appealing for those seeking growth.
- Considering a Price to Book ratio of 13.12, which is well below the industry average by 0.66x, the stock may be undervalued based on its book value compared to its peers.
- The Price to Sales ratio of 13.8, which is 1.44x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
- The Return on Equity (ROE) of 9.53% is 3.51% below the industry average, suggesting potential inefficiency in utilizing equity to generate profits.
- Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $33.39 Billion, which is 48.39x above the industry average, indicating stronger profitability and robust cash flow generation.
- The company has higher gross profit of $42.4 Billion, which indicates 28.08x above the industry average, indicating stronger profitability and higher earnings from its core operations.
-
The company's revenue growth of 17.58% exceeds the industry average of 11.8%, indicating strong sales performance and market outperformance.
The debt-to-equity (D/E) ratio indicates the proportion of debt and equity used by a company to finance its assets and operations.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
When examining Microsoft in comparison to its top 4 peers with respect to the Debt-to-Equity ratio, the following information becomes apparent:
- Microsoft demonstrates a stronger financial position compared to its top 4 peers in the sector.
- With a lower debt-to-equity ratio of 0.37, the company relies less on debt financing and maintains a healthier balance between debt and equity, which can be viewed positively by investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.