Compare Stocks › MSFT vs TER
Microsoft Corporation (MSFT) vs Teradyne, Inc. (TER)
MSFT
Microsoft Corporation
$412.39
VS
TER
Teradyne, Inc.
$339.56
Rewards
MSFT
- ★Microsoft Corporation has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★Gross margin of 68.3% 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.
TER
- ★Teradyne, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★PEG ratio of 0.20 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
- ★Altman Z-Score of 14.86 indicates very low bankruptcy risk — the company is firmly in the safe zone.
Risks
MSFT
- ⚠FCF yield of 2.3% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
TER
- ⚠FCF yield of 0.8% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
- ⚠Trailing P/E of 63.0x is 69% above the historical average of 37.3x — the stock trades at a premium to its own history.
- ⚠6 insider sales with no purchases in the past 3 months — insiders are reducing their exposure.
Key Valuation Metrics
Learn more →MSFT
TER
Valuation
$71.61B
Free Cash Flow
$450.41M
2.34%
FCF Yield
0.85%
24.58
Trailing P/E
63.00
21.36
Forward P/E
35.69
Quality & Moat
21.58%
ROIC
34.88%
24.58%
ROE
17.62%
68.31%
Gross Margin
58.70%
1.05
PEG Ratio
0.20
Balance Sheet Safety
0.30
Debt / Equity
0.03
N/A
Interest Coverage
N/A
0.26
Net Debt / EBITDA
-0.14
0.88%
Dividend Yield
0.15%
MSFT: 7Ties: 1TER: 4
MSFTTER
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.
TER
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
TER
$12.54
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$1.32B
Δ Market Cap
+$16.61B
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
2.6% Overvalued
Price is 2.6% above estimated fair value
Current Price: $412.39
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
Fair Value: $402.01
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
TER
31.4% Overvalued
Price is 31.4% above estimated fair value
Current Price: $339.56
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
Fair Value: $258.33
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 $412?
+13.5%
Market-Implied Owner Earnings Growth
Standard FCF implies +18.3%
The market implies +13.5% Owner Earnings growth, roughly in line with history — reasonably priced.
Standard FCF implies +18.3%, reflecting ongoing growth investment.
TER
What growth rate is the market pricing in at $340?
+29.3%
Market-Implied Owner Earnings Growth
Standard FCF implies +32.2%
The market implies +29.3% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +32.2%, 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.
TER
69/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None
Narrow moat with margin stability as the key competitive advantage. Improving revenue predictability 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.
TER
-2.76
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 75.9%Retail & Other 24.0%
No. of Institutional Holders8,016
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.
TER
Insiders 0.2%Institutions 97.6%Retail & Other 2.2%
No. of Institutional Holders1,536
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)
1
Buys (12M)
Total value (12M): $1.99M
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
TER
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
TER
6
Sells (3M)
20
Sells (12M)
Total value (12M): $2.52M
MILLS REGAN
Officer
$5,475
@ $342.19 · 2026-04-08
JOHNSON MERCEDES
Director
$195,125
@ $312.20 · 2026-04-06
MILLS REGAN
Officer
$73,302
@ $290.88 · 2026-04-02
JOHNSON MERCEDES
Director
$187,000
@ $299.20 · 2026-03-05
MILLS REGAN
Officer
$262,302
@ $332.87 · 2026-02-25
JOHNSON MERCEDES
Director
$166,862
@ $266.98 · 2026-02-05
JOHNSON MERCEDES
Director
$132,406
@ $211.85 · 2026-01-05
SMITH GREGORY STEPHEN
Chief Executive Officer
$223,051
@ $201.31 · 2025-12-12
JOHNSON MERCEDES
Director
$125,000
@ $200.00 · 2025-12-05
SMITH GREGORY STEPHEN
Chief Executive Officer
$199,662
@ $180.20 · 2025-11-12
JOHNSON MERCEDES
Director
$110,656
@ $177.05 · 2025-11-05
SMITH GREGORY STEPHEN
Chief Executive Officer
$160,926
@ $145.24 · 2025-10-10
JOHNSON MERCEDES
Director
$92,438
@ $147.90 · 2025-10-06
SMITH GREGORY STEPHEN
Chief Executive Officer
$70,020
@ $126.39 · 2025-09-22
SMITH GREGORY STEPHEN
Chief Executive Officer
$63,710
@ $115.00 · 2025-09-12
JOHNSON MERCEDES
Director
$75,038
@ $120.06 · 2025-09-05
SMITH GREGORY STEPHEN
Chief Executive Officer
$58,724
@ $106.00 · 2025-08-12
JOHNSON MERCEDES
Director
$66,250
@ $106.00 · 2025-08-05
JOHNSON MERCEDES
Director
$198,244
@ $105.73 · 2025-07-30
SMITH GREGORY STEPHEN
Chief Executive Officer
$58,574
@ $105.73 · 2025-07-30
JOHNSON MERCEDES
Director
$69,350
@ $110.96 · 2025-03-03
MEHTA SANJAY
Chief Financial Officer
$154,302
@ $111.49 · 2025-02-04
DRISCOLL RYAN E
General Counsel
$24,082
@ $111.49 · 2025-02-04
BURNS RICHARD JOHN
Officer
$49,613
@ $111.49 · 2025-02-04
JOHNSON MERCEDES
Director
$70,362
@ $112.58 · 2025-02-03
MEHTA SANJAY
Chief Financial Officer
$62,628
@ $102.00 · 2025-01-30
DRISCOLL RYAN E
Officer
$44,574
@ $102.00 · 2025-01-30
MEHTA SANJAY
Chief Financial Officer
$656,040
@ $122.90 · 2025-01-29
DRISCOLL RYAN E
General Counsel
$9,340
@ $122.89 · 2025-01-29
BURNS RICHARD JOHN
Officer
$181,523
@ $122.90 · 2025-01-29
MEHTA SANJAY
Chief Financial Officer
$215,592
@ $120.51 · 2025-01-28
DRISCOLL RYAN E
General Counsel
$12,895
@ $120.51 · 2025-01-28
BURNS RICHARD JOHN
Officer
$49,048
@ $120.51 · 2025-01-28
BURNS RICHARD JOHN
Officer
$49,048
@ $120.51 · 2025-01-28
SMITH GREGORY STEPHEN
Chief Executive Officer
$400,400
@ $130.00 · 2025-01-03
JOHNSON MERCEDES
Director
$79,225
@ $126.76 · 2025-01-02
SMITH GREGORY STEPHEN
Chief Executive Officer
$400,400
@ $130.00 · 2024-12-16
JOHNSON MERCEDES
Director
$68,775
@ $110.04 · 2024-12-02
JOHNSON MERCEDES
Director
$69,638
@ $111.42 · 2024-11-07
BURNS RICHARD JOHN
Officer
$129,548
@ $132.19 · 2024-10-02
JOHNSON MERCEDES
Director
$83,000
@ $132.80 · 2024-10-01
SMITH GREGORY STEPHEN
Chief Executive Officer
$409,024
@ $132.80 · 2024-10-01
SMITH GREGORY STEPHEN
Chief Executive Officer
$400,400
@ $130.00 · 2024-09-11
JOHNSON MERCEDES
Director
$83,431
@ $133.49 · 2024-09-03
MEHTA SANJAY
Chief Financial Officer
$818,718
@ $133.06 · 2024-08-20
JOHNSON MERCEDES
Director
$80,481
@ $128.77 · 2024-08-01
JOHNSON MERCEDES
Director
$92,500
@ $148.00 · 2024-07-01
JOHNSON MERCEDES
Director
$89,900
@ $143.84 · 2024-06-03
BURNS RICHARD JOHN
Officer
$688,880
@ $137.64 · 2024-05-20
JOHNSON MERCEDES
Director
$75,750
@ $121.20 · 2024-05-06
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(47/100)
"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.
TER
😐Neutral(44/100)
"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 →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 (47)
TER
⚪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 (44)