DocuSign vs Microsoft Which Is More Promising?

DocuSign and Microsoft are two leading technology companies in the digital documentation and software industries, each with a unique investment appeal. DocuSign, known for its electronic signature solutions, has seen strong growth in recent years as businesses increasingly adopt digital workflows. On the other hand, Microsoft, a diversified technology giant, has a long track record of success and a wide range of products and services. Investors looking for pure-play exposure to the digital signature market may favor DocuSign, while those seeking a more stable and established tech investment may lean towards Microsoft.

DocuSign or Microsoft?

When comparing DocuSign and Microsoft, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between DocuSign and Microsoft.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. DocuSign has a dividend yield of -%, while Microsoft has a dividend yield of 0.69%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. DocuSign reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Microsoft reports a 5-year dividend growth of 10.16% year and a payout ratio of 24.63%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with DocuSign P/E ratio at 19.01 and Microsoft's P/E ratio at 36.73. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. DocuSign P/B ratio is 9.67 while Microsoft's P/B ratio is 11.55.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, DocuSign has seen a 5-year revenue growth of -0.22%, while Microsoft's is 0.99%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with DocuSign's ROE at 65.08% and Microsoft's ROE at 34.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $93.39 for DocuSign and $445.58 for Microsoft. Over the past year, DocuSign's prices ranged from $48.70 to $107.86, with a yearly change of 121.48%. Microsoft's prices fluctuated between $366.28 and $468.35, with a yearly change of 27.87%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.