Salesforce.com Inc (CRM)vsGuidewire Software Inc (GWRE)
CRM
Salesforce.com Inc
$242.11
-4.63%
TECHNOLOGY · Cap: $198.10B
GWRE
Guidewire Software Inc
$166.92
-1.32%
TECHNOLOGY · Cap: $13.85B
Smart Verdict
WallStSmart Research — data-driven comparison
Salesforce.com Inc generates 2878% more annual revenue ($43.94B vs $1.48B). CRM leads profitability with a 22.0% profit margin vs 9.4%. CRM appears more attractively valued with a PEG of 0.78. CRM earns a higher WallStSmart Score of 73/100 (B).
CRM
Strong Buy73
out of 100
Grade: B
GWRE
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+65.3%
Fair Value
$713.65
Current Price
$242.11
$471.54 discount
Margin of Safety
+17.5%
Fair Value
$158.09
Current Price
$166.92
$8.83 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 118.9% YoY
Large-cap with strong market position
Every $100 of equity generates 25 in profit
Keeps 22 of every $100 in revenue as profit
Growing faster than its price suggests
Strong operational efficiency at 21.4%
Growing faster than its price suggests
15.3% revenue growth
Areas to Watch
Distress zone — elevated risk
Elevated debt levels
Trading at 11.5x book value
Premium valuation, high expectations priced in
Earnings declined 38.2%
Distress zone — elevated risk
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 22.0% and operating margin at 21.4%. Revenue growth of 10.8% demonstrates continued momentum.
Bull Case : GWRE
The strongest argument for GWRE centers on PEG Ratio, Revenue Growth. Revenue growth of 15.3% demonstrates continued momentum. PEG of 1.00 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 103.6x 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 1.26 — expect wider price swings.
GWRE is growing revenue faster at 15.3% — sustainability is the question.
CRM generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
CRM scores higher overall (73/100 vs 50/100), backed by strong 22.0% margins and 10.8% revenue growth. GWRE offers better value entry with a 17.5% margin of safety. 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.
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