MICROSOFT CORPORATION vs Oracle Corporation, two Software stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Where MSFT and ORCL diverge most: on fcf yield, MSFT reads 2.5% and ORCL reads -5.8%; on return on assets, MSFT reads 16.5% and ORCL reads 5.5%. The rest of the comparable metrics sit closer together. On valuation, today's MSFT price has a different growth bar priced in than ORCL (+15.0% implied for MSFT vs +14.1% for ORCL); the higher figure is the steeper assumption to clear, not a better or worse stock. What MSFT's price implies is a bet that sits within the historical range (whole-company basis). What ORCL's price implies is a bet that sits within the historical range (whole-company basis). The bull and bear cases for each are in their full reports below.
| Metric | MSFT | ORCL |
|---|---|---|
| Price | $385.09 | $140.68 |
| Market cap | $2.87T | $409.7B |
| Sector | Software | Software |
| Stage | Mature | Growth |
| Implied growth (priced in) | +15.0% | +14.1% |
| P/E | 22.9 | 24.1 |
| P/B | 6.92 | 9.51 |
| P/S | 9.01 | 6.08 |
| EV/EBITDA | 15.8 | 17.6 |
| Revenue growth | +17.9% | +17.2% |
| Gross margin | 67.6% | — |
| Operating margin | 46.3% | 32.0% |
| Net margin | 36.0% | 21.6% |
| Return on equity | 27.6% | 33.8% |
| Return on assets | 16.5% | 5.5% |
| Return on invested capital | 26.0% | 32.4% |
| FCF yield | 2.5% | -5.8% |
| Dividend yield | 0.9% | 1.4% |
| Debt / equity | 0.12 | 0.17 |
| Current ratio | 1.28 | 1.12 |
| Altman Z (solvency) | 7.32 | 6.33 |
| Piotroski F (quality) | 5 / 9 | 7 / 9 |
Each week boothcheck ranks the stocks whose prices are betting on the most. Read the most stretched bets archive →
boothcheck is also on Android. Get the app on Google Play →
The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.