Compare Stocks › MCO vs MSFT
Moody's Corporation (MCO) vs Microsoft Corporation (MSFT)
MCO
Moody's Corporation
$435.80
VS
MSFT
Microsoft Corporation
$389.02
Rewards
MCO
- ★Moody's Corporation has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★Gross margin of 74.4% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Moody's Corporation scores 95/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
MSFT
- ★Microsoft Corporation has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★Gross margin of 68.6% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Microsoft Corporation scores 88/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
Risks
MCO
- ⚠FCF yield of 2.7% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
- ⚠8 insider sales totaling $7.5M with no purchases in the past 3 months — insiders are reducing their exposure.
MSFT
- ⚠FCF yield of 2.5% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
Key Valuation Metrics
Learn more →MCO
MSFT
Valuation
$2.06B
Free Cash Flow
$71.61B
2.65%
FCF Yield
2.48%
31.86
Trailing P/E
24.33
23.29
Forward P/E
20.64
Quality & Moat
22.07%
ROIC
22.10%
58.48%
ROE
26.05%
74.44%
Gross Margin
68.59%
0.55
PEG Ratio
0.41
Balance Sheet Safety
1.77
Debt / Equity
0.32
N/A
Interest Coverage
N/A
1.33
Net Debt / EBITDA
0.19
0.95%
Dividend Yield
0.94%
MCO: 3Ties: 3MSFT: 6
MCOMSFT
Historical Fundamentals
Learn more →MCO
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.
MSFT
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.
$1 Retained Earnings Test
Learn more →MCO
$9.35
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$4.24B
Δ Market Cap
+$39.65B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
MSFT
$9.18
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$196.68B
Δ Market Cap
+$1.81T
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Discounted Cash Flow (DCF) Analysis
Learn more →MCO
24.3% Overvalued
Price is 24.3% above estimated fair value
Current Price: $435.80
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
Fair Value: $350.71
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
MSFT
0.5% Overvalued
Price is 0.5% above estimated fair value
Current Price: $389.02
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
Fair Value: $387.10
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
Reverse DCF — Market-Implied Growth
Learn more →MCO
What growth rate is the market pricing in at $436?
+14.8%
Market-Implied Owner Earnings Growth
Standard FCF implies +17.2%
The market implies +14.8% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding +17.2%, reflecting heavy growth investment expected to generate future returns.
MSFT
What growth rate is the market pricing in at $389?
+12.6%
Market-Implied Owner Earnings Growth
Standard FCF implies +17.4%
The market implies +12.6% Owner Earnings growth, roughly in line with history — reasonably priced.
Standard FCF implies +17.4%, reflecting ongoing growth investment.
Economic Moat Score
Learn more →MCO
95/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None
Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.
Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
MSFT
88/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None
Wide moat driven primarily by revenue predictability. Reinvestment Efficiency is the area most vulnerable to competitive pressure.
Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
Forensic Accounting
Learn more →MCO
-2.48
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
MSFT
-2.51
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Ownership Breakdown
Learn more →MCO
Insiders 14.0%Institutions 79.2%Retail & Other 6.8%
No. of Institutional Holders1,993
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
MSFT
Insiders 0.1%Institutions 76.0%Retail & Other 23.9%
No. of Institutional Holders8,055
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →MCO
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
MSFT
1
Buys (3M)
2
Buys (12M)
Total value (12M): $3.44M
STANTON JOHN W.
Director
$1.99M
@ $397.35 · 2026-02-18
SMITH BRADFORD LEE
President
$1.45M
@ $377.47 · 2025-04-23
Open market purchases · includes direct & indirect ownership · excludes option exercises
Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →MCO
8
Sells (3M)
32
Sells (12M)
Total value (12M): $16.09M
WEST MICHAEL L
Officer
$2.01M
@ $473.72 · 2026-03-04
HEULAND NOEMIE CLEMENCE
Chief Financial Officer
$46,587
@ $465.87 · 2026-03-04
PHILLIPS JASON D
Officer
$157,437
@ $472.78 · 2026-03-04
STEELE RICHARD G
General Counsel
$171,266
@ $456.71 · 2026-03-03
FAUBER ROBERT
Chief Executive Officer
$2.38M
@ $456.71 · 2026-03-03
WEST MICHAEL L
Officer
$1.58M
@ $474.10 · 2026-02-26
FAUBER ROBERT
Chief Executive Officer
$592,428
@ $507.65 · 2026-02-03
FAUBER ROBERT
Chief Executive Officer
$590,241
@ $505.78 · 2026-01-05
FAUBER ROBERT
Chief Executive Officer
$280,525
@ $487.87 · 2025-12-03
FAUBER ROBERT
Chief Executive Officer
$287,765
@ $486.09 · 2025-12-01
FAUBER ROBERT
Chief Executive Officer
$558,935
@ $478.95 · 2025-11-03
STEELE RICHARD G
General Counsel
$12,841
@ $493.88 · 2025-10-28
FAUBER ROBERT
Chief Executive Officer
$269,669
@ $493.90 · 2025-10-28
FAUBER ROBERT
Chief Executive Officer
$199,652
@ $481.09 · 2025-10-15
FAUBER ROBERT
Chief Executive Officer
$197,880
@ $477.97 · 2025-10-01
FAUBER ROBERT
Chief Executive Officer
$212,750
@ $512.65 · 2025-09-15
FAUBER ROBERT
Chief Executive Officer
$208,878
@ $503.32 · 2025-09-02
FAUBER ROBERT
Chief Executive Officer
$216,402
@ $521.45 · 2025-08-15
TULENKO STEPHEN T
Officer
$155,688
@ $518.96 · 2025-08-04
FAUBER ROBERT
Chief Executive Officer
$211,729
@ $510.19 · 2025-08-01
TULENKO STEPHEN T
Officer
$1.08M
@ $511.30 · 2025-07-30
WEST MICHAEL L
Officer
$1.89M
@ $511.16 · 2025-07-29
HEULAND NOEMIE CLEMENCE
Chief Financial Officer
$456,109
@ $508.48 · 2025-07-29
STEELE RICHARD G
General Counsel
$741,360
@ $508.83 · 2025-07-29
FAUBER ROBERT
Chief Executive Officer
$208,911
@ $503.40 · 2025-07-15
FAUBER ROBERT
Chief Executive Officer
$206,296
@ $497.10 · 2025-07-01
FAUBER ROBERT
Chief Executive Officer
$197,818
@ $476.67 · 2025-06-16
FAUBER ROBERT
Chief Executive Officer
$196,855
@ $474.35 · 2025-06-02
FAUBER ROBERT
Chief Executive Officer
$198,806
@ $479.05 · 2025-05-15
FAUBER ROBERT
Chief Executive Officer
$187,045
@ $450.71 · 2025-05-01
FAUBER ROBERT
Chief Executive Officer
$181,687
@ $437.80 · 2025-04-15
FAUBER ROBERT
Chief Executive Officer
$192,178
@ $463.08 · 2025-04-01
FAUBER ROBERT
Chief Executive Officer
$184,438
@ $444.43 · 2025-03-17
TULENKO STEPHEN T
Officer
$2.43M
@ $483.19 · 2025-03-05
STEELE RICHARD G
General Counsel
$136,614
@ $494.98 · 2025-03-04
FAUBER ROBERT
Chief Executive Officer
$1.48M
@ $493.90 · 2025-03-04
FAUBER ROBERT
Chief Executive Officer
$141,905
@ $505.00 · 2025-03-03
TULENKO STEPHEN T
Officer
$1.74M
@ $500.03 · 2025-02-26
FAUBER ROBERT
Chief Executive Officer
$146,738
@ $522.20 · 2025-02-18
FAUBER ROBERT
Chief Executive Officer
$138,932
@ $494.42 · 2025-02-03
FAUBER ROBERT
Chief Executive Officer
$133,087
@ $473.62 · 2025-01-15
FAUBER ROBERT
Chief Executive Officer
$133,436
@ $474.86 · 2025-01-02
FAUBER ROBERT
Chief Executive Officer
$137,757
@ $490.24 · 2024-12-16
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
MSFT
1
Sells (3M)
13
Sells (12M)
Total value (12M): $172.43M
HOGAN KATHLEEN T
Officer
$5.05M
@ $409.55 · 2026-03-06
NUMOTO TAKESHI
Officer
$1.36M
@ $478.72 · 2025-12-04
ALTHOFF JUDSON
Officer
$6.27M
@ $491.52 · 2025-12-02
SMITH BRADFORD LEE
President
$19.97M
@ $518.64 · 2025-11-03
NADELLA SATYA
Chief Executive Officer
$75.32M
@ $504.78 · 2025-09-03
NUMOTO TAKESHI
Officer
$2.56M
@ $527.32 · 2025-08-12
NUMOTO TAKESHI
Officer
$1.39M
@ $463.00 · 2025-06-03
NUMOTO TAKESHI
Officer
$460,008
@ $460.01 · 2025-05-30
HOGAN KATHLEEN T
Officer
$9.76M
@ $453.77 · 2025-05-21
ALTHOFF JUDSON
Officer
$7.33M
@ $458.18 · 2025-05-19
COLEMAN AMY
Officer
$5.99M
@ $452.04 · 2025-05-15
SMITH BRADFORD LEE
President
$1.68M
@ $438.44 · 2025-05-05
SMITH BRADFORD LEE
President
$35.30M
@ $435.84 · 2025-05-05
NUMOTO TAKESHI
Officer
$1.12M
@ $447.41 · 2024-12-09
NUMOTO TAKESHI
Officer
$874,634
@ $437.32 · 2024-12-04
NUMOTO TAKESHI
Officer
$1.50M
@ $428.76 · 2024-12-02
ALTHOFF JUDSON
Officer
$10.43M
@ $417.00 · 2024-11-22
NUMOTO TAKESHI
Officer
$414,720
@ $414.72 · 2024-11-22
YOUNG CHRISTOPHER DAVID
Officer
$3.05M
@ $423.66 · 2024-11-12
HOGAN KATHLEEN T
Officer
$7.16M
@ $411.86 · 2024-09-10
NUMOTO TAKESHI
Officer
$1.03M
@ $411.04 · 2024-09-10
SMITH BRADFORD LEE
President
$16.10M
@ $402.59 · 2024-09-09
HOOD AMY E
Chief Financial Officer
$15.60M
@ $410.55 · 2024-09-05
NADELLA SATYA
Chief Executive Officer
$32.02M
@ $408.63 · 2024-09-04
NUMOTO TAKESHI
Officer
$235,535
@ $416.14 · 2024-06-03
ALTHOFF JUDSON
Officer
$10.64M
@ $425.68 · 2024-05-23
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →MCO
😨Fear(40/100)
"Market is pessimistic — investigate whether fears are temporary or structural"
Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
MSFT
😐Neutral(43/100)
"Market is pricing this stock without strong emotion in either direction"
Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
⚖️ Buffett Signal
Learn more →MCO
⚪Awaiting DCF Data
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
DCF Margin of Safety: N/AMr. Market's Mood: Fear (40)
MSFT
⚪Awaiting DCF Data
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
DCF Margin of Safety: N/AMr. Market's Mood: Neutral (43)