Compare Stocks › MSFT vs WMB
Microsoft Corporation (MSFT) vs The Williams Companies, Inc. (WMB)
MSFT
Microsoft Corporation
$389.02
VS
WMB
The Williams Companies, Inc.
$74.06
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.
WMB
- ★Gross margin of 62.1% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Each dollar of retained earnings has created $30.77 of market value — management is an exceptional capital allocator.
- ★PEG ratio of 0.68 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.
WMB
- ⚠Trailing P/E of 34.6x is 53% above the historical average of 22.7x — the stock trades at a premium to its own history.
- ⚠Net debt/EBITDA of 4.4x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.
- ⚠Altman Z-Score of 1.11 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
Key Valuation Metrics
Learn more →MSFT
WMB
Valuation
$71.61B
Free Cash Flow
$-353.50M
2.48%
FCF Yield
-0.39%
24.33
Trailing P/E
34.61
20.64
Forward P/E
28.26
Quality & Moat
22.10%
ROIC
8.66%
26.05%
ROE
17.44%
68.59%
Gross Margin
62.12%
0.41
PEG Ratio
0.68
Balance Sheet Safety
0.32
Debt / Equity
1.97
N/A
Interest Coverage
N/A
0.19
Net Debt / EBITDA
4.35
0.94%
Dividend Yield
2.84%
MSFT: 10Ties: 1WMB: 1
MSFTWMB
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.
WMB
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
WMB
$30.77
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$1.08B
Δ Market Cap
+$33.38B
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
WMB
50.6% Overvalued
Price is 50.6% above estimated fair value
Current Price: $74.06
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
Fair Value: $49.18
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.
WMB
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.
WMB
38/100
No Moat
70+ Wide · 40-69 Narrow · <40 None
No durable moat detected, though margin stability shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.
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.
WMB
-2.67
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.
WMB
Insiders 0.5%Institutions 88.9%Retail & Other 10.7%
No. of Institutional Holders2,167
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
WMB
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
WMB
7
Sells (3M)
16
Sells (12M)
Total value (12M): $5.24M
FAZEL PAYVAND
Officer
$211,989
@ $73.15 · 2026-03-13
RINKE TODD J
Officer
$547,808
@ $74.39 · 2026-03-11
WILSON TERRANCE LANE
General Counsel
$150,480
@ $75.24 · 2026-03-02
HAUSMAN MARY A.
Officer
$757,115
@ $74.91 · 2026-02-26
WILSON TERRANCE LANE
General Counsel
$1.97M
@ $72.92 · 2026-02-24
WILSON TERRANCE LANE
General Counsel
$132,780
@ $66.39 · 2026-02-02
WILSON TERRANCE LANE
General Counsel
$120,220
@ $60.11 · 2026-01-02
WILSON TERRANCE LANE
General Counsel
$123,800
@ $61.90 · 2025-12-09
WILSON TERRANCE LANE
General Counsel
$242,120
@ $60.53 · 2025-11-12
WILSON TERRANCE LANE
General Counsel
$115,240
@ $57.62 · 2025-09-04
LARSEN LARRY C
Chief Operating Officer
$263,115
@ $58.47 · 2025-08-11
WILSON TERRANCE LANE
General Counsel
$119,360
@ $59.68 · 2025-08-01
WILSON TERRANCE LANE
General Counsel
$125,400
@ $62.70 · 2025-07-01
WILSON TERRANCE LANE
General Counsel
$122,420
@ $61.21 · 2025-06-02
WILSON TERRANCE LANE
General Counsel
$116,420
@ $58.21 · 2025-05-01
WILSON TERRANCE LANE
General Counsel
$119,060
@ $59.53 · 2025-04-01
LARSEN LARRY C
Officer
$455,520
@ $56.94 · 2025-03-12
DUNN MICHEAL G
Chief Operating Officer
$5.13M
@ $53.04 · 2025-03-07
HAUSMAN MARY A.
Officer
$511,520
@ $57.50 · 2025-03-04
WILSON TERRANCE LANE
General Counsel
$116,980
@ $58.49 · 2025-03-03
TEPLY CHAD A
Officer
$1.47M
@ $56.46 · 2025-02-27
WILSON TERRANCE LANE
General Counsel
$109,840
@ $54.92 · 2025-02-03
WILSON TERRANCE LANE
General Counsel
$109,000
@ $54.50 · 2025-01-02
WILSON TERRANCE LANE
General Counsel
$117,200
@ $58.60 · 2024-12-02
HAUSMAN MARY A.
Officer
$447,650
@ $56.30 · 2024-11-08
LARSEN LARRY C
Officer
$377,512
@ $56.48 · 2024-11-08
WILSON TERRANCE LANE
General Counsel
$105,420
@ $52.71 · 2024-11-01
WILSON TERRANCE LANE
General Counsel
$90,580
@ $45.29 · 2024-10-01
WILSON TERRANCE LANE
General Counsel
$89,580
@ $44.79 · 2024-09-13
PICKLE DEBBIE L
Officer
$1.51M
@ $39.61 · 2024-05-09
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.
WMB
😏Greed(66/100)
"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)
WMB
⚪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 (66)