Contrasting Wetouch Technology (NASDAQ:WETH) & Microsoft (NASDAQ:MSFT)

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

Analyst Ratings

This is a summary of recent ratings and price targets for Wetouch Technology and Microsoft, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wetouch Technology	0	0	0	0	0.00
Microsoft	0	3	29	0	2.91

Microsoft has a consensus target price of $541.79, suggesting a potential upside of 6.22%. Given Microsoft’s stronger consensus rating and higher possible upside, analysts plainly believe Microsoft is more favorable than Wetouch Technology.

Institutional & Insider Ownership

71.1% of Microsoft shares are owned by institutional investors. 25.3% of Wetouch Technology shares are owned by insiders. Comparatively, 0.0% of Microsoft shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Wetouch Technology and Microsoft”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wetouch Technology	$39.71 million	0.29	$8.26 million	N/A	N/A
Microsoft	$270.01 billion	14.04	$88.14 billion	$12.94	39.42

Microsoft has higher revenue and earnings than Wetouch Technology.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wetouch Technology	N/A	N/A	N/A
Microsoft	35.79%	32.74%	18.13%

Volatility and Risk

Wetouch Technology has a beta of -0.59, indicating that its stock price is 159% less volatile than the S&P 500. Comparatively, Microsoft has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Summary

Microsoft beats Wetouch Technology on 11 of the 12 factors compared between the two stocks.

About Wetouch Technology

Wetouch Technology Inc. engages in the research, development, manufacture, sale, and servicing of medium to large sized projected capacitive touchscreens in the Peoples Republic of China, Taiwan, South Korea, and internationally. The company offers various touch panels, including glass-glass, which are primarily used in GPS/car entertainment panels in mid-size and luxury cars, industrial human-machine interface (HMI), financial and banking terminals, point of sale, and lottery machines; glass-film-film products that are used in GPS and entertainment panels, industrial HMI, financial and banking terminals, lottery, and gaming industry; plastic-glass for use in GPS/entertainment panels, motor vehicle GPS, smart home products, robots, and charging stations; and glass-films used in industrial HMI. Wetouch Technology Inc. was founded in 2011 and is based in Meishan, China.

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.