` Comparison: MSFT vs AAPL - Alpha Spread

MSFT
vs
AAPL

Over the past 12 months, MSFT has underperformed AAPL, delivering a return of -16% compared to the AAPL's +12% growth.

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MSFT
AAPL
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Valuation Comparison

MSFT Intrinsic Value
7 261.19 MXN
Undervaluation 5%
Intrinsic Value
Price
AAPL Intrinsic Value
169.77 USD
Overvaluation 36%
Intrinsic Value
Price
Company Last Price Intrinsic Value DCF Value Relative Value Wall St Target
Microsoft Corp
BMV:MSFT
6 893.25 MXN
Apple Inc
NASDAQ:AAPL
263.24 USD
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Valuation Scenario:
Bear Case
Base Case
Bull Case

Growth Comparison

Growth Over Time
MSFT, AAPL

MSFT
AAPL
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Revenue
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Company LTM Historical Growth Growth Streak % Positive Years Max Drawdown Volatility Forecasted Growth
3 Years 5 Years 10 Years 1 Year 3 Years
Microsoft Corp
Revenue
Apple Inc
Revenue

All metrics are calculated based on data from the last 10 years.

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Profitability Comparison

Free Cash Flow
MSFT, AAPL

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AAPL
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Free Cash Flow
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Company LTM Average Historical Growth FCF Margin Conversion
3 Years 5 Years 3 Years 5 Years 10 Years
Microsoft Corp
BMV:MSFT
Apple Inc
NASDAQ:AAPL
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What is Free Cash Flow?

Gross Margin

MSFT
68.6%
AAPL
47.3%
LTM 3Y Avg 5Y Avg 10Y Avg
Microsoft Corp
Apple Inc

Operating Margin

MSFT
46.7%
AAPL
32.4%
LTM 3Y Avg 5Y Avg 10Y Avg
Microsoft Corp
Apple Inc

Net Margin

MSFT
39%
AAPL
27%
LTM 3Y Avg 5Y Avg 10Y Avg
Microsoft Corp
Apple Inc

FCF Margin

MSFT
25.3%
AAPL
28.3%
LTM 3Y Avg 5Y Avg 10Y Avg
Microsoft Corp
Apple Inc

ROE

MSFT
34.4%
AAPL
162.3%
LTM 3Y Avg 5Y Avg 10Y Avg
Microsoft Corp
Apple Inc

ROA

MSFT
19.9%
AAPL
31.6%
LTM 3Y Avg 5Y Avg 10Y Avg
Microsoft Corp
Apple Inc

ROIC

MSFT
23.7%
AAPL
49.6%
LTM 3Y Avg 5Y Avg 10Y Avg
Microsoft Corp
Apple Inc

ROCE

MSFT
29.7%
AAPL
69.6%
LTM 3Y Avg 5Y Avg 10Y Avg
Microsoft Corp
Apple Inc

Solvency Comparison

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Balance Sheet Comparison
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Stocks Performance

Stocks Performance
MSFT, AAPL

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Performance Gap
MSFT, AAPL

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MSFT
AAPL
Difference
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Performance By Year
MSFT, AAPL

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MSFT
AAPL
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Compare MSFT to other stocks
GOOGL
Alphabet Inc
More expensive
vs MSFT
AMZN
Amazon.com Inc
More expensive
vs MSFT
META
Meta Platforms Inc
More expensive
vs MSFT
ORCL
Oracle Corp
Cheaper
vs MSFT
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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett