Comprehensive Stock Comparison
Compare Cognyte Software Ltd. (CGNT) vs Microsoft Corporation (MSFT) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
Selected Stocks
Add up to 10 tickers. Use presets or search to get started.
Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | MSFT | 14.9% revenue growth vs CGNT's 11.9% |
| Value | MSFT | Lower P/E (23.8x vs 29.6x) |
| Quality / Margins | MSFT | 39.0% net margin vs CGNT's -1.2% |
| Stability / Safety | MSFT | Beta 0.88 vs CGNT's 0.93 |
| Dividends | MSFT | 0.8% yield; 19-year raise streak; CGNT pays no meaningful dividend |
| Momentum (1Y) | MSFT | -0.2% vs CGNT's -20.6% |
| Efficiency (ROA) | MSFT | 17.9% ROA vs CGNT's -0.9%, ROIC 27.9% vs -2.5% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Cognyte Software provides investigative analytics software to government agencies and enterprises for security and intelligence operations. It generates revenue primarily through software licenses and subscriptions — with government contracts forming the bulk of its business — supplemented by professional services like implementation and support. The company's competitive advantage lies in its specialized, open-architecture platform that integrates diverse data sources for complex investigations, creating high switching costs for security-focused customers.
Microsoft is a global technology company that develops software, cloud services, and hardware products. It generates revenue primarily through cloud services like Azure (~40% of revenue), productivity software including Office 365 and Dynamics, and personal computing through Windows licensing and Surface devices. Its key competitive advantage is the deeply entrenched enterprise ecosystem—Windows and Office dominance creates a powerful network effect that drives adoption of its cloud and productivity suites.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
MSFT leads in 5 of 6 categories (Financial Metrics, Profitability & Efficiency). CGNT leads in 1 (Valuation Metrics).
Financial Metrics (TTM)
MSFT is the larger business by revenue, generating $305.5B annually — 811.2x CGNT's $377M. MSFT is the more profitable business, keeping 39.0% of every revenue dollar as net income compared to CGNT's -1.2%.
| Metric | CGNTCognyte Software … | MSFTMicrosoft Corpora… |
|---|---|---|
| RevenueTrailing 12 months | $377M | $305.5B |
| EBITDAEarnings before interest/tax | $16M | $184.8B |
| Net IncomeAfter-tax profit | -$5M | $119.3B |
| Free Cash FlowCash after capex | $11M | $77.4B |
| Gross MarginGross profit ÷ Revenue | +70.9% | +68.6% |
| Operating MarginEBIT ÷ Revenue | +0.9% | +46.7% |
| Net MarginNet income ÷ Revenue | -1.2% | +39.0% |
| FCF MarginFCF ÷ Revenue | +3.0% | +25.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +15.5% | +16.7% |
| EPS Growth (YoY)Latest quarter vs prior year | +173.6% | +59.8% |
Valuation Metrics
On an enterprise value basis, MSFT's 18.1x EV/EBITDA is more attractive than CGNT's 50.9x.
| Metric | CGNTCognyte Software … | MSFTMicrosoft Corpora… |
|---|---|---|
| Market CapShares × price | $511M | $2.92T |
| Enterprise ValueMkt cap + debt − cash | $434M | $2.95T |
| Trailing P/EPrice ÷ TTM EPS | -41.71x | 28.79x |
| Forward P/EPrice ÷ next-FY EPS est. | 29.64x | 23.84x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.53x |
| EV / EBITDAEnterprise value multiple | 50.87x | 18.12x |
| Price / SalesMarket cap ÷ Revenue | 1.46x | 10.36x |
| Price / BookPrice ÷ Book value/share | 2.34x | 8.54x |
| Price / FCFMarket cap ÷ FCF | 15.21x | 40.74x |
Profitability & Efficiency
MSFT delivers a 30.5% return on equity — every $100 of shareholder capital generates $31 in annual profit, vs $-2 for CGNT. CGNT carries lower financial leverage with a 0.16x debt-to-equity ratio, signaling a more conservative balance sheet compared to MSFT's 0.18x. On the Piotroski fundamental quality scale (0–9), MSFT scores 6/9 vs CGNT's 5/9, reflecting solid financial health.
| Metric | CGNTCognyte Software … | MSFTMicrosoft Corpora… |
|---|---|---|
| ROE (TTM)Return on equity | -2.0% | +30.5% |
| ROA (TTM)Return on assets | -0.9% | +17.9% |
| ROICReturn on invested capital | -2.5% | +27.9% |
| ROCEReturn on capital employed | -1.8% | +29.7% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 6 |
| Debt / EquityFinancial leverage | 0.16x | 0.18x |
| Net DebtTotal debt minus cash | -$77M | $30.3B |
| Cash & Equiv.Liquid assets | $113M | $30.2B |
| Total DebtShort + long-term debt | $36M | $60.6B |
| Interest CoverageEBIT ÷ Interest expense | 21.71x | 56.44x |
Total Returns (with DRIP)
A $10,000 investment in MSFT five years ago would be worth $17,186 today (with dividends reinvested), compared to $2,302 for CGNT. Over the past 12 months, MSFT leads with a -0.2% total return vs CGNT's -20.6%. The 3-year compound annual growth rate (CAGR) favors CGNT at 24.2% vs MSFT's 17.3% — a key indicator of consistent wealth creation.
| Metric | CGNTCognyte Software … | MSFTMicrosoft Corpora… |
|---|---|---|
| YTD ReturnYear-to-date | -20.3% | -16.8% |
| 1-Year ReturnPast 12 months | -20.6% | -0.2% |
| 3-Year ReturnCumulative with dividends | +91.6% | +61.3% |
| 5-Year ReturnCumulative with dividends | -77.0% | +71.9% |
| 10-Year ReturnCumulative with dividends | -74.7% | +718.2% |
| CAGR (3Y)Annualised 3-year return | +24.2% | +17.3% |
Risk & Volatility
MSFT is the less volatile stock with a 0.88 beta — it tends to amplify market swings less than CGNT's 0.93 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. MSFT currently trades 70.7% from its 52-week high vs CGNT's 60.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | CGNTCognyte Software … | MSFTMicrosoft Corpora… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.93x | 0.88x |
| 52-Week HighHighest price in past year | $11.66 | $555.45 |
| 52-Week LowLowest price in past year | $6.29 | $344.79 |
| % of 52W HighCurrent price vs 52-week peak | +60.8% | +70.7% |
| RSI (14)Momentum oscillator 0–100 | 39.5 | 39.8 |
| Avg Volume (50D)Average daily shares traded | 289K | 28.4M |
Analyst Outlook
Wall Street rates CGNT as "Hold" and MSFT as "Buy". Consensus price targets imply 97.5% upside for CGNT (target: $14) vs 48.6% for MSFT (target: $584). MSFT is the only dividend payer here at 0.82% yield — a key consideration for income-focused portfolios.
| Metric | CGNTCognyte Software … | MSFTMicrosoft Corpora… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $14.00 | $583.67 |
| # AnalystsCovering analysts | 5 | 78 |
| Dividend YieldAnnual dividend ÷ price | — | +0.8% |
| Dividend StreakConsecutive years of raises | 0 | 19 |
| Dividend / ShareAnnual DPS | — | $3.23 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.0% | +0.6% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 21 | Feb 26 | Change |
|---|---|---|---|
| Cognyte Software Lt… (CGNT) | 100 | 32.77 | -67.2% |
| Microsoft Corporati… (MSFT) | 100 | 178.68 | +78.7% |
Microsoft Corporati… (MSFT) returned +72% over 5 years vs Cognyte Software Lt… (CGNT)'s -77%. A $10,000 investment in MSFT 5 years ago would be worth $17,186 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Cognyte Software Lt… (CGNT) | $56M | $351M | +522.6% |
| Microsoft Corporati… (MSFT) | $91.2B | $281.7B | +209.1% |
Microsoft Corporation's revenue grew from $91.2B (2016) to $281.7B (2025) — a 13.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Cognyte Software Lt… (CGNT) | -1.6% | -3.4% | -119.2% |
| Microsoft Corporati… (MSFT) | 22.5% | 36.1% | +60.4% |
Microsoft Corporation's net margin went from 23% (2016) to 36% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Microsoft Corporati… (MSFT) | 26.3 | 35.5 | +35.0% |
Microsoft Corporation has traded in a 25x–48x P/E range over 9 years; current trailing P/E is ~29x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Cognyte Software Lt… (CGNT) | -0.01 | -0.17 | -1056.5% |
| Microsoft Corporati… (MSFT) | 2.1 | 13.64 | +549.5% |
Microsoft Corporation's EPS grew from $2.10 (2016) to $13.64 (2025) — a 23% CAGR.
Chart 6Free Cash Flow — 5 Years
Cognyte Software Ltd. generated $34M FCF in 2025 (-35% vs 2021). Microsoft Corporation generated $72B FCF in 2025 (+28% vs 2021).
CGNT vs MSFT: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is CGNT or MSFT a better buy right now?
Microsoft Corporation (MSFT) offers the better valuation at 28.8x trailing P/E (23.8x forward), making it the more compelling value choice. Analysts rate Microsoft Corporation (MSFT) a "Buy" — based on 78 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — CGNT or MSFT?
On forward P/E, Microsoft Corporation is actually cheaper at 23.8x.
03Which is the better long-term investment — CGNT or MSFT?
Over the past 5 years, Microsoft Corporation (MSFT) delivered a total return of +71.9%, compared to -77.0% for Cognyte Software Ltd. (CGNT). A $10,000 investment in MSFT five years ago would be worth approximately $17K today (assuming dividends reinvested). Over 10 years, the gap is even starker: MSFT returned +718.2% versus CGNT's -74.7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — CGNT or MSFT?
By beta (market sensitivity over 5 years), Microsoft Corporation (MSFT) is the lower-risk stock at 0.88β versus Cognyte Software Ltd.'s 0.93β — meaning CGNT is approximately 5% more volatile than MSFT relative to the S&P 500. On balance sheet safety, Cognyte Software Ltd. (CGNT) carries a lower debt/equity ratio of 16% versus 18% for Microsoft Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — CGNT or MSFT?
Microsoft Corporation (MSFT) is the more profitable company, earning 36.1% net margin versus -3.4% for Cognyte Software Ltd. — meaning it keeps 36.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MSFT leads at 45.6% versus -1.5% for CGNT. At the gross margin level — before operating expenses — CGNT leads at 70.4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is CGNT or MSFT more undervalued right now?
On forward earnings alone, Microsoft Corporation (MSFT) trades at 23.8x forward P/E versus 29.6x for Cognyte Software Ltd. — 5.8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CGNT: 97.5% to $14.00.
07Which pays a better dividend — CGNT or MSFT?
In this comparison, MSFT (0.8% yield) pays a dividend. CGNT does not pay a meaningful dividend and should not be held primarily for income.
08Is CGNT or MSFT better for a retirement portfolio?
For long-horizon retirement investors, Microsoft Corporation (MSFT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.88), 0.8% yield, +718.2% 10Y return). Both have compounded well over 10 years (MSFT: +718.2%, CGNT: -74.7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between CGNT and MSFT?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. MSFT pays a dividend while CGNT does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that beat both.