MSFT vs WDC: Which Is the Better Buy?
Side-by-side comparison of Microsoft Corporation and Western Digital Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-19.
Microsoft Corporation · Technology
$497.12
+41.3% upside to fair value
High Conviction
Grade A
High Quality
VS
Western Digital Corporation · Technology
$441.36
-16.8% upside to fair value
Med Conviction
Grade C
QuantHub Verdict
MSFT has more upside to fair value
(+41.3%).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MSFT |
WDC |
| Current Price |
$497.12 |
$441.36 |
| Fair Value Estimate |
$702.35 |
$367.30 |
| Upside to Fair Value |
+41.3%
|
-16.8%
|
| Market Cap |
$3,691.4B |
$152.1B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
18.3x
|
17.4x
|
| Price / Sales |
11.1x
|
11.8x
|
| Price / FCF |
55.1x
|
47.3x
|
| Revenue Growth YoY |
+17.7%
|
+43.8%
|
| Gross Margin |
67.9%
|
48.9%
|
| Operating Margin |
46.8%
|
34.9%
|
| Return on Equity |
33.2%
|
118.6%
|
| Dividend Yield |
0.73% |
0.12% |
| FCF Yield |
1.81%
|
2.12%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
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…
Western Digital designs and manufactures hard disk drives and flash-based storage for data centers, client devices, and consumer markets, and it is currently enjoying an extraordinary demand surge tied to AI infrastructure buildouts. In the most recent quarter, revenue grew 43.8% year over year and earnings grew 1143.2% year over year, while trailing twelve-month gross margin reached 48.9%, opera…
Accumulation Zones
| Metric |
MSFT |
WDC |
| Zone Low |
$526.76 |
$275.48 |
| Zone High |
$597.00 |
$312.20 |
| In Buy Zone? |
Yes
|
No
|