DELL vs MSFT: Which Is the Better Buy?
Side-by-side comparison of Dell Technologies Inc. and Microsoft Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-21.
Dell Technologies Inc. · Technology
$569.00
-32.5% upside to fair value
Low Conviction
Grade C
VS
Microsoft Corporation · Technology
$497.12
+41.3% upside to fair value
High Conviction
Grade A
High Quality
QuantHub Verdict
MSFT has more upside to fair value
(+41.3%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
DELL |
MSFT |
| Current Price |
$569.00 |
$497.12 |
| Fair Value Estimate |
$383.93 |
$702.35 |
| Upside to Fair Value |
-32.5%
|
+41.3%
|
| Market Cap |
$378.0B |
$3,691.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
21.8x
|
18.3x
|
| Price / Sales |
2.5x
|
11.1x
|
| Price / FCF |
42.9x
|
55.1x
|
| Revenue Growth YoY |
+57.7%
|
+17.7%
|
| Gross Margin |
19.8%
|
67.9%
|
| Operating Margin |
9.6%
|
46.8%
|
| Return on Equity |
-574.6%
|
33.2%
|
| Dividend Yield |
0.41% |
0.73% |
| FCF Yield |
2.33%
|
1.81%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
Dell Technologies is a $378 billion market-cap computer hardware vendor spanning Infrastructure Solutions Group (servers, storage, networking), Client Solutions Group (PCs, displays, peripherals), and a VMware-related software franchise, led by founder-CEO Michael Dell. The business is fundamentally low-quality on the numbers: TTM gross margin is 19.8%, operating margin 9.6%, and net margin 7.5%,…
Microsoft is a global infrastructure-software platform spanning Azure, Microsoft 365, security, Dynamics, Windows, GitHub and AI copilots, with high business quality supported by enterprise distribution, explicitly cited switching costs, a $678 billion commercial RPO balance, 67.9% TTM gross margin, 46.8% TTM operating margin, 40.3% TTM net margin and 33.2% ROE. Revenue grew 17.7% and earnings gr…
Accumulation Zones
| Metric |
DELL |
MSFT |
| Zone Low |
$287.95 |
$526.76 |
| Zone High |
$326.34 |
$597.00 |
| In Buy Zone? |
No
|
Yes
|