MSFT vs NFLX: Which Is the Better Buy?
Side-by-side comparison of Microsoft Corporation and Netflix, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-04.
Microsoft Corporation · Technology
$429.25
+23.0% upside to fair value
Grade B
High Quality
VS
Netflix, Inc. · Communication Services
$91.02
+95.7% upside to fair value
Grade B
High Quality
QuantHub Verdict
NFLX has more upside to fair value
(+95.7%).
MSFT trades at a lower forward P/E
(26.8x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MSFT |
NFLX |
| Current Price |
$429.25 |
$91.02 |
| Fair Value Estimate |
$527.78 |
$178.10 |
| Upside to Fair Value |
+23.0%
|
+95.7%
|
| Market Cap |
$3,187.4B |
$383.3B |
| Forward P/E |
26.8x
|
28.7x
|
| EV / EBITDA |
17.2x
|
11.4x
|
| Price / Sales |
10.4x
|
8.2x
|
| Price / FCF |
41.2x
|
32.2x
|
| Revenue Growth YoY |
+16.7%
|
+16.2%
|
| Gross Margin |
68.6%
|
49.0%
|
| Operating Margin |
46.7%
|
29.7%
|
| Return on Equity |
33.6%
|
49.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.43%
|
3.1%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Microsoft Corporation is a leading technology company specializing in software infrastructure, cloud computing, and productivity solutions. The company benefits from a high-quality business model characterized by durable competitive moats including strong switching costs and intangible assets such as its brand and cloud infrastructure. Under CEO Satya Nadella's leadership since 2014, Microsoft ha…
Netflix, Inc. operates a leading global streaming entertainment service with a dominant streaming segment accounting for nearly 100% of its revenue. The company benefits from a high-quality business model characterized by strong revenue growth of 16.2% and earnings growth of 82.8% in the most recent quarter, a robust 49.2% return on equity, and healthy margins with a 29.7% operating margin and 28…
Accumulation Zones
| Metric |
MSFT |
NFLX |
| Zone Low |
$395.83 |
$133.57 |
| Zone High |
$448.61 |
$151.38 |
| In Buy Zone? |
Yes
|
Yes
|