WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Salesforce.com Inc generates 14075% more annual revenue ($42.83B vs $302.14M). CRM leads profitability with a 18.7% profit margin vs -6.5%. CRM earns a higher WallStSmart Score of 76/100 (B+).

CRM

Strong Buy

76

out of 100

Grade: B+

Growth: 7.3Profit: 7.5Value: 8.0Quality: 4.5
Piotroski: 5/9Altman Z: 1.50

CRNC

Avoid

29

out of 100

Grade: F

Growth: 2.0Profit: 3.0Value: 6.7Quality: 4.0
Piotroski: 3/9Altman Z: -1.33
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CRMUndervalued (+73.6%)

Margin of Safety

+73.6%

Fair Value

$713.24

Current Price

$188.38

$524.86 discount

UndervaluedFair: $713.24Overvalued
CRNCUndervalued (+53.1%)

Margin of Safety

+53.1%

Fair Value

$17.28

Current Price

$7.95

$9.33 discount

UndervaluedFair: $17.28Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRM6 strengths · Avg: 8.7/10
EPS GrowthGrowth
52.2%10/10

Earnings expanding 52.2% YoY

Market CapQuality
$139.28B9/10

Large-cap with strong market position

Return on EquityProfitability
23.4%9/10

Every $100 of equity generates 23 in profit

PEG RatioValuation
0.718/10

Growing faster than its price suggests

Operating MarginProfitability
21.8%8/10

Strong operational efficiency at 21.8%

Free Cash FlowQuality
$6.56B8/10

Generating 6.6B in free cash flow

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
1.223/10

Elevated debt levels

CRNC4 concerns · Avg: 2.8/10
Market CapQuality
$398.11M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.183/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-12.4%2/10

ROE of -12.4% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : CRM

The strongest argument for CRM centers on EPS Growth, Market Cap, Return on Equity. Profitability is solid with margins at 18.7% and operating margin at 21.8%. Revenue growth of 13.3% demonstrates continued momentum.

Bull Case : CRNC

The strongest argument for CRNC centers on Price/Book.

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, Debt/Equity, Piotroski F-Score.

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 2.99 — expect wider price swings.

CRM is growing revenue faster at 13.3% — sustainability is the question.

CRM generates stronger free cash flow (6.6B), providing more financial flexibility.

Bottom Line

CRM scores higher overall (76/100 vs 29/100), backed by strong 18.7% margins and 13.3% revenue growth. CRNC offers better value entry with a 53.1% margin of safety. Both earn "Strong Buy" and "Avoid" 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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