MSFT vs XOM: Which Is the Better Buy?
Side-by-side comparison of Microsoft Corporation and Exxon Mobil Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-11.
Microsoft Corporation · Technology
$372.20
+32.4% upside to fair value
High Conviction
Grade A
VS
Exxon Mobil Corporation · Energy
$152.30
-33.0% upside to fair value
Med Conviction
Grade C+
QuantHub Verdict
MSFT has more upside to fair value
(+32.4%).
XOM trades at a lower forward P/E
(17.5x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MSFT |
XOM |
| Current Price |
$372.20 |
$152.30 |
| Fair Value Estimate |
$493.00 |
$102.00 |
| Upside to Fair Value |
+32.4%
|
-33.0%
|
| Market Cap |
$2,763.6B |
$634.6B |
| Forward P/E |
22.0x
|
17.5x
|
| EV / EBITDA |
17.5x
|
9.8x
|
| Price / Sales |
9.1x
|
2.0x
|
| Price / FCF |
35.8x
|
26.9x
|
| Revenue Growth YoY |
+14.9%
|
-4.5%
|
| Gross Margin |
68.8%
|
21.7%
|
| Operating Margin |
45.6%
|
10.5%
|
| Return on Equity |
29.6%
|
11.1%
|
| Dividend Yield |
0.94% |
2.65% |
| FCF Yield |
2.8%
|
3.72%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Microsoft is the world's largest software company, operating a three-pillar empire across cloud (Azure), productivity (Office 365/Teams), and personal computing (Windows/Xbox). Azure is the second-largest cloud platform globally with 24% market share and growing at 38-39% in constant currency, while Microsoft Cloud revenue crossed $168.9B in FY2025. The stock has dropped 33% from its highs to $37…
Exxon Mobil is a world-class integrated energy supermajor with unmatched Permian Basin scale following the Pioneer Natural Resources acquisition, a high-margin Guyana growth engine, and disciplined capital allocation. However, the stock remains significantly overvalued relative to its own 5-year history on every key metric. At $152, XOM trades at roughly 22x trailing earnings, 1.96x sales, and 27…
Accumulation Zones
| Metric |
MSFT |
XOM |
| Zone Low |
$370.00 |
$77.00 |
| Zone High |
$419.00 |
$92.00 |
| In Buy Zone? |
Yes
|
No
|