Microsoft (NASDAQ:MSFT) & Expensify (NASDAQ:EXFY) Financial Contrast

Microsoft (NASDAQ:MSFTGet Rating) and Expensify (NASDAQ:EXFYGet Rating) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Profitability

This table compares Microsoft and Expensify’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Microsoft 37.63% 44.85% 20.43%
Expensify N/A N/A N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for Microsoft and Expensify, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Microsoft 0 1 28 0 2.97
Expensify 0 1 6 0 2.86

Microsoft presently has a consensus target price of $356.68, indicating a potential upside of 33.52%. Expensify has a consensus target price of $30.43, indicating a potential upside of 45.31%. Given Expensify’s higher probable upside, analysts clearly believe Expensify is more favorable than Microsoft.

Institutional & Insider Ownership

70.0% of Microsoft shares are owned by institutional investors. Comparatively, 49.3% of Expensify shares are owned by institutional investors. 0.1% of Microsoft shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Microsoft and Expensify’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Microsoft $168.09 billion 11.93 $61.27 billion $9.58 28.00
Expensify $142.84 million 10.02 -$13.56 million N/A N/A

Microsoft has higher revenue and earnings than Expensify.

Summary

Microsoft beats Expensify on 10 of the 11 factors compared between the two stocks.

About Microsoft (Get Rating)

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Its Productivity and Business Processes segment offers Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, and Skype for Business, as well as related Client Access Licenses (CAL); Skype, Outlook.com, OneDrive, and LinkedIn; and Dynamics 365, a set of cloud-based and on-premises business solutions for organizations and enterprise divisions. Its Intelligent Cloud segment licenses SQL, Windows Servers, Visual Studio, System Center, and related CALs; GitHub that provides a collaboration platform and code hosting service for developers; and Azure, a cloud platform. It also offers support services and Microsoft consulting services to assist customers in developing, deploying, and managing Microsoft server and desktop solutions; and training and certification on Microsoft products. Its More Personal Computing segment provides Windows original equipment manufacturer (OEM) licensing and other non-volume licensing of the Windows operating system; Windows Commercial, such as volume licensing of the Windows operating system, Windows cloud services, and other Windows commercial offerings; patent licensing; Windows Internet of Things; and MSN advertising. It also offers Surface, PC accessories, PCs, tablets, gaming and entertainment consoles, and other devices; Gaming, including Xbox hardware, and Xbox content and services; video games and third-party video game royalties; and Search, including Bing and Microsoft advertising. It sells its products through OEMs, distributors, and resellers; and directly through digital marketplaces, online stores, and retail stores. It has collaborations with Dynatrace, Inc., Morgan Stanley, Micro Focus, WPP plc, ACI Worldwide, Inc., and iCIMS, Inc., as well as strategic relationships with Avaya Holdings Corp. and wejo Limited. Microsoft Corporation was founded in 1975 and is based in Redmond, Washington.

About Expensify (Get Rating)

Expensify, Inc. provides a cloud-based expense management software platform to individuals, small businesses, and corporations in the United States and internationally. The company's platform enables users to manage corporate cards, pay bills, generate invoices, collect payments, and book travel. It also offers track and submit plans for individuals. The company was founded in 2008 and is based in Portland, Oregon.

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