Reviewing Elcom International (OTCMKTS:ELCO) & Microsoft (NASDAQ:MSFT)

Elcom International (OTCMKTS:ELCO) and Microsoft (NASDAQ:MSFT) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Risk & Volatility

Elcom International has a beta of -0.11, meaning that its share price is 111% less volatile than the S&P 500. Comparatively, Microsoft has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Elcom International and Microsoft, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elcom International	0	0	0	0	0.00
Microsoft	0	7	39	0	2.85

Microsoft has a consensus price target of $560.88, indicating a potential upside of 34.15%. Given Microsoft’s stronger consensus rating and higher probable upside, analysts plainly believe Microsoft is more favorable than Elcom International.

Valuation & Earnings

This table compares Elcom International and Microsoft”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elcom International	N/A	N/A	N/A	N/A	N/A
Microsoft	$281.72 billion	11.02	$101.83 billion	$16.80	24.89

Microsoft has higher revenue and earnings than Elcom International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Elcom International	N/A	N/A	N/A
Microsoft	39.34%	31.94%	18.47%

Insider & Institutional Ownership

71.1% of Microsoft shares are held by institutional investors. 13.6% of Elcom International shares are held by company insiders. Comparatively, 0.0% of Microsoft shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Microsoft beats Elcom International on 9 of the 10 factors compared between the two stocks.

About Elcom International

Elcom International Inc. provides cloud based e-procurement solutions worldwide. It offers Procure to Pay solutions to publish and manage supplier content, connect to buyers, and analyze spend and procurement processes; eInvoicing solutions to send and receive eInvoices with supplier adoption guaranteed; and sourcing functions to investigate potential suppliers on a local and global basis. The company also provides services for buyers, including catalog processing, development of punchout catalogs, and to integrate Elcom’s PECOS solution into existing purchasing processes; and services for suppliers, such as onboarding of new suppliers to utilize the solution, access to demand generating activities, and to access information and bids that relate to products and services. It offers eProcurement solutions for governments, educational institutions, healthcare organizations, private enterprises, buying groups. Elcom International Inc. was founded in 1992 and is based in Braintree, Massachusetts.

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.