Compare Stocks › MSFT vs TRGP
Microsoft Corporation (MSFT) vs Targa Resources Corp. (TRGP)
MSFT
Microsoft Corporation
$389.02
VS
TRGP
Targa Resources Corp.
$239.53
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.
TRGP
- ★Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.
- ★Each dollar of retained earnings has created $8.45 of market value — management is an exceptional capital allocator.
- ★PEG ratio of 0.38 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings 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.
TRGP
- ⚠High leverage (5.49x debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
- ⚠7 insider sales totaling $25.5M with no purchases in the past 3 months — insiders are reducing their exposure.
- ⚠Free cash flow has declined at a 17.7% CAGR over the past 4 years — a concerning trend.
Key Valuation Metrics
Learn more →MSFT
TRGP
Valuation
$71.61B
Free Cash Flow
$-264.40M
2.48%
FCF Yield
-0.51%
24.33
Trailing P/E
28.25
20.64
Forward P/E
21.60
Quality & Moat
22.10%
ROIC
14.67%
26.05%
ROE
57.92%
68.59%
Gross Margin
38.29%
0.41
PEG Ratio
0.38
Balance Sheet Safety
0.32
Debt / Equity
5.49
N/A
Interest Coverage
N/A
0.19
Net Debt / EBITDA
3.59
0.94%
Dividend Yield
1.67%
MSFT: 7Ties: 2TRGP: 3
MSFTTRGP
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.
TRGP
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
TRGP
$8.45
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$2.72B
Δ Market Cap
+$22.99B
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
TRGP
94.3% Overvalued
Price is 94.3% above estimated fair value
Current Price: $239.53
Strongly undervalued
Fairly valued
Strongly overvalued
Fair Value: $123.29
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.
TRGP
Requires positive FCF to compute implied growth rate.
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.
TRGP
54/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None
Narrow moat with roic consistency as the key competitive advantage. Improving reinvestment efficiency 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.
TRGP
-3.07
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 Holders8,055
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.
TRGP
Insiders 1.4%Institutions 95.6%Retail & Other 3.0%
No. of Institutional Holders1,317
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
TRGP
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
TRGP
7
Sells (3M)
8
Sells (12M)
Total value (12M): $25.97M
MURARO ROBERT M
Officer
$5.93M
@ $241.34 · 2026-03-05
BRANSTETTER BENJAMIN J
Officer
$778,124
@ $238.83 · 2026-03-02
MCDONIE PATRICK J
Officer
$7.55M
@ $239.36 · 2026-03-02
COOKSEN LINDSEY M
Director
$100,797
@ $231.72 · 2026-02-26
PRYOR DOUGLAS SCOTT
Officer
$4.01M
@ $228.92 · 2026-02-25
CRISP CHARLES RICHARD
Director
$311,619
@ $229.30 · 2026-02-24
KNEALE JENNIFER R
President
$6.79M
@ $230.12 · 2026-02-24
SHRADER GERALD R
General Counsel
$498,328
@ $181.21 · 2025-12-05
CHUNG PAUL W
Director
$1.26M
@ $202.91 · 2025-02-28
COOKSEN LINDSEY M
Director
$208,042
@ $198.14 · 2025-02-28
CRISP CHARLES RICHARD
Director
$378,167
@ $194.23 · 2025-02-25
KNEALE JENNIFER R
Officer
$5.75M
@ $192.42 · 2025-02-25
MELOY MATTHEW J
Chief Executive Officer
$9.53M
@ $195.08 · 2025-02-25
DAVIS WATERS S IV
Director
$429,802
@ $196.26 · 2025-02-25
MURARO ROBERT M
Officer
$505,736
@ $202.29 · 2024-12-02
BOUSHKA JULIE H.
Officer
$1.91M
@ $190.52 · 2024-11-15
CHUNG PAUL W
Director
$3.43M
@ $190.03 · 2024-11-08
CRISP CHARLES RICHARD
Director
$1.14M
@ $190.68 · 2024-11-08
BOUSHKA JULIE H.
Officer
$621,809
@ $190.74 · 2024-11-08
MURARO ROBERT M
Officer
$365,504
@ $146.20 · 2024-09-03
MURARO ROBERT M
Officer
$1.40M
@ $140.04 · 2024-08-14
CRISP CHARLES RICHARD
Director
$688,134
@ $137.63 · 2024-08-12
SHRADER GERALD R
General Counsel
$408,195
@ $136.06 · 2024-08-09
BOUSHKA JULIE H.
Officer
$1.87M
@ $134.74 · 2024-08-08
BOUSHKA JULIE H.
Officer
$160,146
@ $132.02 · 2024-08-06
MURARO ROBERT M
Officer
$1.29M
@ $130.31 · 2024-06-28
MURARO ROBERT M
Officer
$13,000
@ $130.00 · 2024-06-26
MURARO ROBERT M
Officer
$1.20M
@ $120.08 · 2024-06-10
MURARO ROBERT M
Officer
$1.46M
@ $116.63 · 2024-06-03
REDD ERSHEL C JR
Director
$339,297
@ $113.10 · 2024-05-10
CRISP CHARLES RICHARD
Director
$787,761
@ $112.54 · 2024-05-08
BOUSHKA JULIE H.
Officer
$549,779
@ $112.78 · 2024-05-08
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.
TRGP
😏Greed(65/100)
"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)
TRGP
⚪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 (65)