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
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 grβ¦
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 qualitβ¦
Accumulation Zones
| Metric |
MSFT |
XOM |
| Zone Low |
$526.76 |
$134.98 |
| Zone High |
$597.00 |
$152.98 |
| In Buy Zone? |
Yes
|
No
|