Critical Survey: CXApp (NASDAQ:CXAI) & Microsoft (NASDAQ:MSFT)

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

Earnings and Valuation

This table compares Microsoft and CXApp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Microsoft	$245.12 billion	12.62	$88.14 billion	$11.81	35.25
CXApp	-$2.45 million	-9.85	-$53.62 million	N/A	N/A

Microsoft has higher revenue and earnings than CXApp.

Volatility & Risk

Microsoft has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, CXApp has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.

Insider & Institutional Ownership

71.1% of Microsoft shares are held by institutional investors. Comparatively, 14.4% of CXApp shares are held by institutional investors. 0.0% of Microsoft shares are held by insiders. Comparatively, 89.1% of CXApp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Microsoft	35.96%	35.95%	18.43%
CXApp	-674.28%	-167.12%	-118.56%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Microsoft and CXApp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Microsoft	0	2	30	0	2.94
CXApp	0	0	0	0	N/A

Microsoft presently has a consensus price target of $493.47, suggesting a potential upside of 18.53%. Given Microsoft’s higher possible upside, analysts clearly believe Microsoft is more favorable than CXApp.

Summary

Microsoft beats CXApp on 10 of the 11 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 CXApp

CXApp Inc. provides a workplace experience platform for enterprise customers. It offers CXApp, a software-as-a-service platform with native mapping, analytics, on-device positioning, and applications technologies for use in various applications, such as workplace experience, employee engagement, desk and meeting room reservations, workplace analytics, occupancy management, content delivery, corporate communications and notifications, event management, live indoor mapping, wayfinding, and navigation. The company was formerly known as KINS Technology Group Inc. and changed its name to CXApp Inc. in March 2023. The company is based in Palo Alto, California.