MSFT vs XOM: Which Is the Better Buy?

Side-by-side comparison of Microsoft Corporation and Exxon Mobil Corporation β€” fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-09-19.
Microsoft Corporation Β· Technology
$497.12
+41.3% upside to fair value
High Conviction Grade A High Quality
VS
Exxon Mobil Corporation Β· Energy
$163.18
+10.3% upside to fair value
Med Conviction Grade B High Quality
QuantHub Verdict
MSFT has more upside to fair value (+41.3%). These are model outputs β€” not personalized investment advice. See all research β†’
Valuation & Fundamentals
Metric MSFT XOM
Current Price $497.12 $163.18
Fair Value Estimate $702.35 $179.98
Upside to Fair Value +41.3% +10.3%
Market Cap $3,691.4B $676.3B
Forward P/E β€” β€”
EV / EBITDA 18.3x 9.9x
Price / Sales 11.1x 1.9x
Price / FCF 55.1x 22.3x
Revenue Growth YoY +17.7% +44.1%
Gross Margin 67.9% 25.1%
Operating Margin 46.8% 10.7%
Return on Equity 33.2% 12.7%
Dividend Yield 0.73% 2.52%
FCF Yield 1.81% 4.49%
Analyst Consensus Strong Buy Hold
Investment Thesis
MSFT β€” Microsoft Corporation
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…
XOM β€” Exxon Mobil Corporation
Exxon Mobil is the largest integrated oil and gas major in the United States, operating across Upstream exploration and production, Downstream refining and fuels marketing, and Chemical manufacturing, with roughly 57,900 employees and a portfolio that spans conventional crude and natural gas, LNG, petrochemicals, and early-stage carbon capture, hydrogen, and biofuels ventures. The business qualit…
Accumulation Zones
Metric MSFT XOM
Zone Low $526.76 $134.98
Zone High $597.00 $152.98
In Buy Zone? Yes No
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