WallStSmart

Salesforce.com Inc (CRM)vsCerence Inc (CRNC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Salesforce.com Inc generates 14097% more annual revenue ($43.94B vs $309.49M). CRM leads profitability with a 22.0% profit margin vs -5.0%. CRM earns a higher WallStSmart Score of 74/100 (B).

CRM

Strong Buy

74

out of 100

Grade: B

Growth: 7.3Profit: 8.0Value: 8.0Quality: 4.5
Piotroski: 5/9Altman Z: 1.50

CRNC

Hold

36

out of 100

Grade: F

Growth: 3.3Profit: 3.5Value: 6.7Quality: 4.5
Piotroski: 3/9Altman Z: -1.33
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CRMUndervalued (+65.7%)

Margin of Safety

+65.7%

Fair Value

$721.77

Current Price

$247.72

$474.05 discount

UndervaluedFair: $721.77Overvalued
CRNCUndervalued (+53.2%)

Margin of Safety

+53.2%

Fair Value

$17.30

Current Price

$8.51

$8.79 discount

UndervaluedFair: $17.30Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRM6 strengths · Avg: 9.0/10
Market CapQuality
$203.87B10/10

Mega-cap, among the largest globally

EPS GrowthGrowth
118.9%10/10

Earnings expanding 118.9% YoY

Return on EquityProfitability
25.2%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
22.0%9/10

Keeps 22 of every $100 in revenue as profit

PEG RatioValuation
0.908/10

Growing faster than its price suggests

Operating MarginProfitability
21.4%8/10

Strong operational efficiency at 21.4%

CRNC1 strengths · Avg: 8.0/10
Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Areas to Watch

CRM2 concerns · Avg: 3.5/10
Altman Z-ScoreHealth
1.504/10

Distress zone — elevated risk

Debt/EquityHealth
1.093/10

Elevated debt levels

CRNC4 concerns · Avg: 3.0/10
Market CapQuality
$384.91M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

Debt/EquityHealth
1.123/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : CRM

The strongest argument for CRM centers on Market Cap, EPS Growth, Return on Equity. Profitability is solid with margins at 22.0% and operating margin at 21.4%. Revenue growth of 10.8% demonstrates continued momentum.

Bull Case : CRNC

The strongest argument for CRNC centers on Price/Book. Revenue growth of 11.8% demonstrates continued momentum.

Bear Case : CRM

The primary concerns for CRM are Altman Z-Score, Debt/Equity.

Bear Case : CRNC

The primary concerns for CRNC are Market Cap, Operating Margin, Debt/Equity.

Key Dynamics to Monitor

CRM profiles as a mature stock while CRNC is a turnaround play — different risk/reward profiles.

CRNC carries more volatility with a beta of 3.01 — expect wider price swings.

CRNC is growing revenue faster at 11.8% — sustainability is the question.

CRM generates stronger free cash flow (1.1B), providing more financial flexibility.

Bottom Line

CRM scores higher overall (74/100 vs 36/100), backed by strong 22.0% margins and 10.8% revenue growth. CRNC offers better value entry with a 53.2% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

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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Cerence Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Cerence Inc. provides assistants and innovations with artificial intelligence technology for connected and autonomous vehicles. Offers state-of-the-art software components; components connected to the cloud; tool kits; Applications; and virtual assistant for coexistence and professional services. The company is headquartered in Burlington, Massachusetts.

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