WallStSmart

Adobe Systems Incorporated (ADBE)vsSalesforce.com Inc (CRM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Salesforce.com Inc generates 70% more annual revenue ($41.52B vs $24.45B). ADBE leads profitability with a 29.5% profit margin vs 18.0%. ADBE appears more attractively valued with a PEG of 0.71. ADBE earns a higher WallStSmart Score of 74/100 (B).

ADBE

Strong Buy

74

out of 100

Grade: B

Growth: 6.7Profit: 10.0Value: 10.0Quality: 7.0
Piotroski: 4/9Altman Z: 4.35

CRM

Strong Buy

65

out of 100

Grade: B-

Growth: 6.7Profit: 7.0Value: 9.3Quality: 6.0
Piotroski: 5/9Altman Z: 1.83
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADBEUndervalued (+41.6%)

Margin of Safety

+41.6%

Fair Value

$421.20

Current Price

$248.15

$173.05 discount

UndervaluedFair: $421.20Overvalued
CRMUndervalued (+29.4%)

Margin of Safety

+29.4%

Fair Value

$276.08

Current Price

$195.38

$80.70 discount

UndervaluedFair: $276.08Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADBE6 strengths · Avg: 9.3/10
Return on EquityProfitability
58.8%10/10

Every $100 of equity generates 59 in profit

Operating MarginProfitability
37.8%10/10

Strong operational efficiency at 37.8%

Altman Z-ScoreHealth
4.3510/10

Safe zone — low bankruptcy risk

Market CapQuality
$103.39B9/10

Large-cap with strong market position

Profit MarginProfitability
29.5%9/10

Keeps 30 of every $100 in revenue as profit

PEG RatioValuation
0.718/10

Growing faster than its price suggests

CRM4 strengths · Avg: 8.5/10
Market CapQuality
$185.84B9/10

Large-cap with strong market position

Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.918/10

Growing faster than its price suggests

Free Cash FlowQuality
$5.32B8/10

Generating 5.3B in free cash flow

Areas to Watch

ADBE1 concerns · Avg: 4.0/10
Price/BookValuation
8.9x4/10

Trading at 8.9x book value

CRM2 concerns · Avg: 4.0/10
P/E RatioValuation
25.5x4/10

Moderate valuation

Altman Z-ScoreHealth
1.834/10

Grey zone — moderate risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ADBE

The strongest argument for ADBE centers on Return on Equity, Operating Margin, Altman Z-Score. Profitability is solid with margins at 29.5% and operating margin at 37.8%. Revenue growth of 12.0% demonstrates continued momentum.

Bull Case : CRM

The strongest argument for CRM centers on Market Cap, Debt/Equity, PEG Ratio. Profitability is solid with margins at 18.0% and operating margin at 19.2%. Revenue growth of 12.1% demonstrates continued momentum.

Bear Case : ADBE

The primary concerns for ADBE are Price/Book.

Bear Case : CRM

The primary concerns for CRM are P/E Ratio, Altman Z-Score.

Key Dynamics to Monitor

ADBE carries more volatility with a beta of 1.53 — expect wider price swings.

CRM is growing revenue faster at 12.1% — sustainability is the question.

CRM generates stronger free cash flow (5.3B), providing more financial flexibility.

Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ADBE scores higher overall (74/100 vs 65/100), backed by strong 29.5% margins and 12.0% revenue growth. CRM offers better value entry with a 29.4% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Adobe Systems Incorporated

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Adobe Inc. is an American multinational computer software company. Incorporated in Delaware and headquartered in San Jose, California, it has historically specialized in software for the creation and publication of a wide range of content, including graphics, photography, illustration, animation, multimedia, motion pictures and print. The company has expanded into digital marketing management software. Adobe has millions of users worldwide. Flagship products include: Photoshop image editing software, Adobe Illustrator vector-based illustration software, Adobe Acrobat Reader and the Portable Document Format (PDF), plus a host of tools primarily for audio-visual content creation, editing and publishing.

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Salesforce.com Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Salesforce.com, Inc. is an American cloud-based software company headquartered in San Francisco, California. It provides customer relationship management (CRM) service and also provides a complementary suite of enterprise applications focused on customer service, marketing automation, analytics, and application development.

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