MSFT vs WMT: Which Is the Better Buy?
Side-by-side comparison of Microsoft Corporation and Walmart Inc. — 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
Walmart Inc. · Consumer Defensive
$106.73
-10.8% upside to fair value
Med Conviction
Grade C
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 |
MSFT |
WMT |
| Current Price |
$497.12 |
$106.73 |
| Fair Value Estimate |
$702.35 |
$95.24 |
| Upside to Fair Value |
+41.3%
|
-10.8%
|
| Market Cap |
$3,691.4B |
$849.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
18.3x
|
21.3x
|
| Price / Sales |
11.1x
|
1.1x
|
| Price / FCF |
55.1x
|
62.8x
|
| Revenue Growth YoY |
+17.7%
|
+5.9%
|
| Gross Margin |
67.9%
|
25.2%
|
| Operating Margin |
46.8%
|
4.4%
|
| Return on Equity |
33.2%
|
22.7%
|
| Dividend Yield |
0.73% |
0.92% |
| FCF Yield |
1.81%
|
1.59%
|
| 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…
Walmart Inc. is the world's largest retailer by revenue, operating more than 10,000 stores and clubs across Walmart U.S., Walmart International, and Sam's Club, with a fast-growing e-commerce and advertising ecosystem layered on top of a grocery-led, everyday-low-price model. The business quality is high: scale and sourcing power underpin a durable cost advantage, ROE is 22.7%, and revenue grew 5…
Accumulation Zones
| Metric |
MSFT |
WMT |
| Zone Low |
$526.76 |
$71.43 |
| Zone High |
$597.00 |
$80.95 |
| In Buy Zone? |
Yes
|
No
|