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 2026-05-01.
Microsoft Corporation · Technology
$429.25
-1.3% upside to fair value
Grade B
High Quality
VS
Exxon Mobil Corporation · Energy
$154.46
-40.5% upside to fair value
Grade C
QuantHub Verdict
MSFT has more upside to fair value
(-1.3%).
XOM trades at a lower forward P/E
(23.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
MSFT |
XOM |
| Current Price |
$429.25 |
$154.46 |
| Fair Value Estimate |
$423.82 |
$91.87 |
| Upside to Fair Value |
-1.3%
|
-40.5%
|
| Market Cap |
$3,187.4B |
$642.0B |
| Forward P/E |
26.8x
|
23.2x
|
| EV / EBITDA |
17.2x
|
10.3x
|
| Price / Sales |
10.4x
|
2.0x
|
| Price / FCF |
41.2x
|
27.2x
|
| Revenue Growth YoY |
+16.7%
|
-1.3%
|
| Gross Margin |
68.6%
|
21.7%
|
| Operating Margin |
46.7%
|
10.5%
|
| Return on Equity |
33.6%
|
11.0%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.43%
|
3.68%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Microsoft Corporation is a leading technology company specializing in software infrastructure, cloud computing, and productivity solutions. The company benefits from a high-quality business model characterized by durable competitive moats including strong switching costs and intangible assets such as its brand and cloud infrastructure. Under CEO Satya Nadella's leadership since 2014, Microsoft ha…
Exxon Mobil Corporation operates as a global integrated oil and gas company with significant operations in upstream, energy products, chemical products, and specialty products segments. The company benefits from a highly experienced management team with decades of internal tenure, led by CEO Darren Woods. Despite strong cash flow generation and operational scale, Exxon is currently overvalued, tr…
Accumulation Zones
| Metric |
MSFT |
XOM |
| Zone Low |
$317.87 |
$68.90 |
| Zone High |
$360.25 |
$78.09 |
| In Buy Zone? |
No
|
No
|