WallStSmart

Salesforce.com Inc (CRM)vsKLA Corporation (KLAC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Salesforce.com Inc generates 226% more annual revenue ($41.52B vs $12.74B). KLAC leads profitability with a 35.8% profit margin vs 18.0%. CRM appears more attractively valued with a PEG of 1.06. KLAC earns a higher WallStSmart Score of 70/100 (B).

CRM

Buy

63

out of 100

Grade: C+

Growth: 6.7Profit: 7.0Value: 10.0Quality: 6.0
Piotroski: 5/9Altman Z: 1.83

KLAC

Strong Buy

70

out of 100

Grade: B

Growth: 7.3Profit: 10.0Value: 8.7Quality: 8.5
Piotroski: 6/9Altman Z: 2.70
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CRMUndervalued (+34.2%)

Margin of Safety

+34.2%

Fair Value

$276.43

Current Price

$181.96

$94.47 discount

UndervaluedFair: $276.43Overvalued
KLACUndervalued (+3.9%)

Margin of Safety

+3.9%

Fair Value

$1605.71

Current Price

$1543.82

$61.89 discount

UndervaluedFair: $1605.71Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRM4 strengths · Avg: 8.5/10
Market CapQuality
$171.49B9/10

Large-cap with strong market position

Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$5.32B8/10

Generating 5.3B in free cash flow

KLAC6 strengths · Avg: 9.3/10
Market CapQuality
$205.79B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
100.7%10/10

Every $100 of equity generates 101 in profit

Profit MarginProfitability
35.8%10/10

Keeps 36 of every $100 in revenue as profit

Operating MarginProfitability
41.3%10/10

Strong operational efficiency at 41.3%

EPS GrowthGrowth
40.9%8/10

Earnings expanding 40.9% YoY

Free Cash FlowQuality
$1.26B8/10

Generating 1.3B in free cash flow

Areas to Watch

CRM1 concerns · Avg: 4.0/10
Altman Z-ScoreHealth
1.834/10

Grey zone — moderate risk

KLAC4 concerns · Avg: 2.8/10
PEG RatioValuation
1.664/10

Expensive relative to growth rate

Debt/EquityHealth
1.153/10

Elevated debt levels

P/E RatioValuation
45.6x2/10

Premium valuation, high expectations priced in

Price/BookValuation
37.0x2/10

Trading at 37.0x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : CRM

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

Bull Case : KLAC

The strongest argument for KLAC centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 35.8% and operating margin at 41.3%.

Bear Case : CRM

The primary concerns for CRM are Altman Z-Score.

Bear Case : KLAC

The primary concerns for KLAC are PEG Ratio, Debt/Equity, P/E Ratio. A P/E of 45.6x leaves little room for execution misses.

Key Dynamics to Monitor

KLAC carries more volatility with a beta of 1.45 — 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

KLAC scores higher overall (70/100 vs 63/100), backed by strong 35.8% margins. CRM offers better value entry with a 34.2% 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 →

KLA Corporation

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

KLA Corporation is a capital equipment company based in Milpitas, California. It supplies process control and yield management systems for the semiconductor industry and other related nanoelectronics industries. The company's products and services are intended for all phases of wafer, reticle, integrated circuit (IC) and packaging production, from research and development to final volume manufacturing.

Visit Website →

Want to dig deeper into these stocks?