Compare Stocks › MSFT vs NOC
Microsoft Corporation (MSFT) vs Northrop Grumman Corporation (NOC)
MSFT
Microsoft Corporation
$389.02
VS
NOC
Northrop Grumman Corporation
$714.15
Rewards
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.
NOC
- ★Free cash flow has grown at a 31.1% CAGR over the past 4 years, demonstrating strong earnings power growth.
Risks
MSFT
- ⚠FCF yield of 2.5% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
NOC
- ⚠Gross margin of 19.8% is low, suggesting a competitive or commodity-like market with limited pricing power.
- ⚠FCF yield of 2.8% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
- ⚠13 insider sales totaling $26.2M with no purchases in the past 3 months — insiders are reducing their exposure.
Key Valuation Metrics
Learn more →MSFT
NOC
Valuation
$71.61B
Free Cash Flow
$2.90B
2.48%
FCF Yield
2.85%
24.33
Trailing P/E
24.57
20.64
Forward P/E
23.78
Quality & Moat
22.10%
ROIC
15.85%
26.05%
ROE
25.08%
68.59%
Gross Margin
19.82%
0.41
PEG Ratio
1.62
Balance Sheet Safety
0.32
Debt / Equity
1.07
N/A
Interest Coverage
N/A
0.19
Net Debt / EBITDA
1.98
0.94%
Dividend Yield
1.29%
MSFT: 7Ties: 3NOC: 2
MSFTNOC
Historical Fundamentals
Learn more →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.
NOC
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 →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
NOC
$-0.38
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$6.82B
Δ Market Cap
$-2.60B
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 →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
NOC
28.5% Overvalued
Price is 28.5% above estimated fair value
Current Price: $714.15
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
Fair Value: $555.65
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
Reverse DCF — Market-Implied Growth
Learn more →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.
NOC
What growth rate is the market pricing in at $714?
+12.1%
Market-Implied Owner Earnings Growth
Standard FCF implies +17.1%
The market implies +12.1% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +17.1%, reflecting heavy growth investment.
Economic Moat Score
Learn more →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.
NOC
68/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None
Narrow moat with revenue predictability as the key competitive advantage. Improving margin stability would strengthen the moat.
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 →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.
NOC
-2.45
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 →MSFT
Insiders 0.1%Institutions 76.0%Retail & Other 23.9%
No. of Institutional Holders8,054
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.
NOC
Insiders 0.2%Institutions 83.5%Retail & Other 16.3%
No. of Institutional Holders2,192
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 →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
NOC
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
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 →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
NOC
13
Sells (3M)
25
Sells (12M)
Total value (12M): $35.39M
SIMPSON KATHRYN G.
General Counsel
$650,385
@ $745.00 · 2026-03-02
ROEDER ROSHAN S.
Officer
$1.26M
@ $720.00 · 2026-02-27
HARDESTY MICHAEL A
Officer
$107,748
@ $732.98 · 2026-02-19
ROEDER ROSHAN S.
Officer
$372,541
@ $727.62 · 2026-02-19
SIMPSON KATHRYN G.
General Counsel
$141,158
@ $727.62 · 2026-02-19
DAVIES BENJAMIN R
Officer
$1.58M
@ $719.62 · 2026-02-18
HARDESTY MICHAEL A
Officer
$501,609
@ $701.55 · 2026-02-17
ROEDER ROSHAN S.
Officer
$223,414
@ $702.56 · 2026-02-17
SIMPSON KATHRYN G.
General Counsel
$547,294
@ $702.56 · 2026-02-17
HARDESTY MICHAEL A
Officer
$550,411
@ $702.95 · 2026-02-13
WARDEN KATHY J
Chief Executive Officer
$14.18M
@ $708.82 · 2026-02-06
WELSH MARK A. III
Director
$65,029
@ $684.52 · 2026-02-02
WARDEN KATHY J
Chief Executive Officer
$6.04M
@ $604.50 · 2026-01-06
ROEDER ROSHAN S.
Officer
$46,649
@ $555.35 · 2025-12-09
WELSH MARK A. III
Director
$54,716
@ $564.08 · 2025-11-24
JONES THOMAS H.
Officer
$382,725
@ $525.00 · 2025-07-17
WELSH MARK A. III
Director
$16,720
@ $506.67 · 2025-07-07
JONES THOMAS H.
Officer
$368,706
@ $505.77 · 2025-06-13
FLEMING ROBERT J
Officer
$1.77M
@ $505.77 · 2025-06-13
WARDEN KATHY J
Chief Executive Officer
$5.65M
@ $502.18 · 2025-06-13
WELSH MARK A. III
Director
$16,120
@ $488.48 · 2025-06-05
ROEDER ROSHAN S.
Officer
$485,590
@ $490.00 · 2025-06-04
JONES THOMAS H.
Officer
$349,920
@ $480.00 · 2025-05-30
WELSH MARK A. III
Director
$16,293
@ $493.73 · 2025-05-05
WELSH MARK A. III
Director
$15,850
@ $480.30 · 2025-04-07
WARDEN KATHY J
Chief Executive Officer
$1.78M
@ $475.65 · 2025-03-06
WELSH MARK A. III
Director
$15,631
@ $473.67 · 2025-03-05
DAVIES BENJAMIN R
Officer
$213,788
@ $460.75 · 2025-02-28
HARDESTY MICHAEL A
Officer
$875,873
@ $453.59 · 2025-02-24
SIMPSON KATHRYN G.
General Counsel
$444,098
@ $429.08 · 2025-02-20
DAVIES BENJAMIN R
Officer
$82,383
@ $429.08 · 2025-02-20
SIMPSON KATHRYN G.
General Counsel
$395,916
@ $445.35 · 2025-02-18
DAVIES BENJAMIN R
Officer
$130,488
@ $445.35 · 2025-02-18
WELSH MARK A. III
Director
$15,843
@ $480.09 · 2025-02-05
WELSH MARK A. III
Director
$15,072
@ $456.73 · 2025-01-06
WELSH MARK A. III
Director
$15,886
@ $481.39 · 2024-12-05
DAVIES BENJAMIN R
Officer
$616,067
@ $532.93 · 2024-11-11
WELSH MARK A. III
Director
$16,833
@ $510.09 · 2024-11-05
WELSH MARK A. III
Director
$17,675
@ $535.61 · 2024-10-07
WELSH MARK A. III
Director
$17,151
@ $519.73 · 2024-09-05
WELSH MARK A. III
Director
$17,546
@ $516.06 · 2024-08-29
JONES THOMAS H.
Officer
$695,000
@ $500.00 · 2024-08-02
JONES THOMAS H.
Officer
$1.30M
@ $469.25 · 2024-07-26
ROEDER ROSHAN S.
Officer
$429,429
@ $471.90 · 2024-05-20
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 →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.
NOC
😏Greed(61/100)
"Market is optimistic — be cautious and ensure you have a margin of safety"
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 →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)
NOC
⚪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: Greed (61)