Microsoft (NASDAQ:MSFT – Get Free Report) and USData (OTCMKTS:USDC – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.
Institutional and Insider Ownership
71.1% of Microsoft shares are owned by institutional investors. 0.0% of Microsoft shares are owned by company insiders. Comparatively, 0.6% of USData shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Microsoft has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, USData has a beta of -1.5, meaning that its share price is 250% less volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Microsoft | 39.34% | 31.94% | 18.47% |
| USData | N/A | N/A | N/A |
Valuation and Earnings
This table compares Microsoft and USData”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Microsoft | $281.72 billion | 10.80 | $101.83 billion | $16.80 | 24.37 |
| USData | N/A | N/A | N/A | N/A | N/A |
Microsoft has higher revenue and earnings than USData.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Microsoft and USData, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Microsoft | 0 | 7 | 39 | 0 | 2.85 |
| USData | 0 | 0 | 0 | 0 | 0.00 |
Microsoft currently has a consensus target price of $560.88, indicating a potential upside of 36.99%. Given Microsoft’s stronger consensus rating and higher possible upside, equities analysts plainly believe Microsoft is more favorable than USData.
Summary
Microsoft beats USData on 9 of the 10 factors compared between the two stocks.
About Microsoft
Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services. This segment also provides LinkedIn; and dynamics business solutions, including Dynamics 365, a set of intelligent, cloud-based applications across ERP, CRM, power apps, and power automate; and on-premises ERP and CRM applications. The Intelligent Cloud segment offers server products and cloud services, such as azure and other cloud services; SQL and windows server, visual studio, system center, and related client access licenses, as well as nuance and GitHub; and enterprise services including enterprise support services, industry solutions, and nuance professional services. The More Personal Computing segment offers Windows, including windows OEM licensing and other non-volume licensing of the Windows operating system; Windows commercial comprising volume licensing of the Windows operating system, windows cloud services, and other Windows commercial offerings; patent licensing; and windows Internet of Things; and devices, such as surface, HoloLens, and PC accessories. Additionally, this segment provides gaming, which includes Xbox hardware and content, and first- and third-party content; Xbox game pass and other subscriptions, cloud gaming, advertising, third-party disc royalties, and other cloud services; and search and news advertising, which includes Bing, Microsoft News and Edge, and third-party affiliates. The company sells its products through OEMs, distributors, and resellers; and directly through digital marketplaces, online, and retail stores. The company was founded in 1975 and is headquartered in Redmond, Washington.
About USData
USDATA Corp. operates as an independent, global supplier of industrial automation software tools, applications, and consulting services designed to provide businesses with the knowledge and control needed to perfect the products they produce and the processes they manage. USDATA Corp. develops, markets, and supports component-based software products for customers requiring enterprise-wide, open solutions for the industrial automation markets. These software products provide customers real-time computer applications that enable interactive, dynamic, and graphical interfaces to industrial operations. These applications collect, consolidate, and communicate information about an automated process, typically drawn from complex operating sources or from multiple sites throughout an enterprise; and enable the user to interact with and control critical processes. The real-time information provided by its products is intended to enable customers to reduce operating costs, improve product quality, and increase overall throughput and productivity. USDATA’s FactoryLink is a process knowledge and control solution where as its Xfactory is a product knowledge and control software product. It serves customers in a variety of industries, including chemical, oil and gas, food, beverage, automotive, aerospace, telecommunications, electronics, transportation, and other industries. These customers are located in the United States, Europe, Canada, Latin America, and Asia Pacific. The company sells its products and services to end customers and systems integrators through distributors, original equipment manufacturer relationships, and direct sales. USDATA Corp. was founded in 1974 and is based in Richardson, Texas.
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