Analyzing Microsoft (NASDAQ:MSFT) & Procore Technologies (NYSE:PCOR)

Microsoft (NASDAQ:MSFTGet Free Report) and Procore Technologies (NYSE:PCORGet Free Report) are both large-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.

Insider and Institutional Ownership

69.2% of Microsoft shares are owned by institutional investors. Comparatively, 81.1% of Procore Technologies shares are owned by institutional investors. 0.0% of Microsoft shares are owned by company insiders. Comparatively, 39.2% of Procore Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Microsoft and Procore Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Microsoft 0 3 36 0 2.92
Procore Technologies 0 3 11 0 2.79

Microsoft presently has a consensus price target of $411.06, suggesting a potential upside of 1.80%. Procore Technologies has a consensus price target of $73.87, suggesting a potential upside of 2.48%. Given Procore Technologies’ higher probable upside, analysts plainly believe Procore Technologies is more favorable than Microsoft.

Profitability

This table compares Microsoft and Procore Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Microsoft 36.27% 39.83% 20.00%
Procore Technologies -25.94% -15.88% -10.18%

Valuation and Earnings

This table compares Microsoft and Procore Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Microsoft $211.92 billion 14.16 $72.36 billion $11.06 36.51
Procore Technologies $720.20 million 14.36 -$286.93 million ($1.64) -43.95

Microsoft has higher revenue and earnings than Procore Technologies. Procore Technologies is trading at a lower price-to-earnings ratio than Microsoft, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Microsoft has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Procore Technologies has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.

Summary

Microsoft beats Procore Technologies on 10 of the 14 factors compared between the two stocks.

About Microsoft

(Get Free Report)

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 Procore Technologies

(Get Free Report)

Procore Technologies, Inc. provides a cloud-based construction management platform and related software products in the United States and internationally. The company's platform enables owners, general and specialty contractors, architects, and engineers to collaborate on construction projects. It offers Preconstruction that facilitates collaboration between internal and external stakeholders during the planning, budgeting, estimating, bidding, and partner selection phase of a construction project; and Project Management, which enables real-time collaboration, information storage, design, BIM model clash detection, and regulation compliance for teams on the jobsite and in the back office. The company also provides workforce management that helps contractors to schedule, track, and forecast labor productivity, enhance time management, communication with workforces, and manage profitability on construction projects; and Financial Management, which provides customers with visibility into the financial health of their individual construction projects and portfolios, as well as facilitates untethered access to financial data, linking the field, and the office in real-time. It serves owners, general contractors, and specialty contractors operating in the commercial, residential, industrial, and infrastructure segments of the construction industry. The company allow users to access its products on computers, smartphones, and tablets through any web browser or from its mobile application available for iOS and Android platforms through its direct sales team. Procore Technologies, Inc. was incorporated in 2002 and is headquartered in Carpinteria, California.

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