Salesforce.com Inc (CRM)vsGuidewire Software Inc (GWRE)
CRM
Salesforce.com Inc
$185.66
-0.34%
TECHNOLOGY · Cap: $164.49B
GWRE
Guidewire Software Inc
$136.06
-10.00%
TECHNOLOGY · Cap: $10.20B
Smart Verdict
WallStSmart Research — data-driven comparison
Salesforce.com Inc generates 2914% more annual revenue ($42.83B vs $1.42B). CRM leads profitability with a 18.7% profit margin vs 11.3%. GWRE appears more attractively valued with a PEG of 0.67. CRM earns a higher WallStSmart Score of 71/100 (B).
CRM
Strong Buy71
out of 100
Grade: B
GWRE
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+74.7%
Fair Value
$722.63
Current Price
$185.66
$536.97 discount
Margin of Safety
+13.7%
Fair Value
$151.03
Current Price
$136.06
$14.97 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 52.2% YoY
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Strong operational efficiency at 21.8%
Generating 6.6B in free cash flow
Growing faster than its price suggests
Revenue surging 26.9% year-over-year
Areas to Watch
Distress zone — elevated risk
Elevated debt levels
Trading at 8.6x book value
Premium valuation, high expectations priced in
Earnings declined 64.8%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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 : GWRE
The strongest argument for GWRE centers on PEG Ratio, Revenue Growth. Revenue growth of 26.9% demonstrates continued momentum. PEG of 0.67 suggests the stock is reasonably priced for its growth.
Bear Case : CRM
The primary concerns for CRM are Altman Z-Score, Debt/Equity.
Bear Case : GWRE
The primary concerns for GWRE are Price/Book, P/E Ratio, EPS Growth. A P/E of 65.9x leaves little room for execution misses.
Key Dynamics to Monitor
CRM profiles as a mature stock while GWRE is a growth play — different risk/reward profiles.
CRM carries more volatility with a beta of 1.14 — expect wider price swings.
GWRE is growing revenue faster at 26.9% — sustainability is the question.
CRM generates stronger free cash flow (6.6B), providing more financial flexibility.
Bottom Line
CRM scores higher overall (71/100 vs 53/100), backed by strong 18.7% margins and 13.3% revenue growth. Both earn "Strong Buy" and "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.
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.
Visit Website →Guidewire Software Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Guidewire Software, Inc. provides software products for property and casualty insurers around the world. The company is headquartered in San Mateo, California.
Compare with Other SOFTWARE - APPLICATION Stocks
Want to dig deeper into these stocks?