CrowdStrike (CRWD) vs Microsoft Corporation (MSFT)

CrowdStrike and Microsoft Corporation are both Software Infrastructure companies. Microsoft Corporation is the larger, with a market value of $3.68T against $265.1B — 13.9× the size. Microsoft Corporation trades at the lower P/E: 28.7× against 7,163×. CrowdStrike grew revenue faster over the last twelve months: 24.3% against 17.8%. Microsoft Corporation has the higher net margin (40.3% vs 0.83%) and the higher return on invested capital (23.9% vs −9.53%). Across the 22 metrics below, Microsoft Corporation leads on 16 and CrowdStrike on 6.

Valuation

Metric CRWD MSFT Software Infrastructure median
P/E 7,162.78 28.69 28.02
P/S 47.63 11.57 3.07
P/B 50.01 8.68 3.36
Price to free cash flow 170.05 57.31 17.12
EV/EBITDA 391.15 19.62 14.91
EV/Sales 46.84 11.46 3.03
Earnings yield 0.01% 3.49% 0.13%
Free cash flow yield 0.59% 1.74% 1.15%

Profitability

Metric CRWD MSFT Software Infrastructure median
Gross margin 75.19% 67.94% 61.23%
Operating margin (2.46%) 46.78% 0.00%
Net margin 0.83% 40.31% 0.00%
Free cash flow margin 28.01% 20.19% 1.67%
Return on equity 1.01% 34.04% 0.59%
Return on assets 0.42% 19.42% 0.00%
Return on invested capital (9.53%) 23.91% 0.00%

Growth

Metric CRWD MSFT Software Infrastructure median
Revenue growth (TTM) 24.30% 17.79% 13.41%
EPS growth (last fiscal year) (1,169.53%) 31.60% —
Revenue growth, 5-year CAGR 40.64% 14.57% 15.81%
Net income growth, 5-year CAGR 0.00% 16.90% 0.00%

Health

Metric CRWD MSFT Software Infrastructure median
Debt to equity 0.15 0.09 0.06
Current ratio 1.57 1.23 1.55
Net debt to EBITDA (10.25) (0.19) 0.08

Dividend

Metric CRWD MSFT Software Infrastructure median
Dividend yield — 0.71% 1.53%
Payout ratio 0.00 0.27 0.00

Size

Metric CRWD MSFT Software Infrastructure median
Market cap 265.06b 3.68t 835.96m

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