WallStSmart

Salesforce.com Inc (CRM)vsServiceNow Inc (NOW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Salesforce.com Inc generates 213% more annual revenue ($41.52B vs $13.28B). CRM leads profitability with a 18.0% profit margin vs 13.2%. CRM appears more attractively valued with a PEG of 0.91. CRM earns a higher WallStSmart Score of 65/100 (B-).

CRM

Strong Buy

65

out of 100

Grade: B-

Growth: 6.7Profit: 7.0Value: 9.3Quality: 6.0
Piotroski: 5/9Altman Z: 1.83

NOW

Buy

56

out of 100

Grade: C

Growth: 7.3Profit: 7.0Value: 4.7Quality: 3.8
Piotroski: 1/9Altman Z: 1.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CRMUndervalued (+29.4%)

Margin of Safety

+29.4%

Fair Value

$276.08

Current Price

$195.38

$80.70 discount

UndervaluedFair: $276.08Overvalued
NOWSignificantly Overvalued (-454.2%)

Margin of Safety

-454.2%

Fair Value

$20.44

Current Price

$110.38

$89.94 premium

UndervaluedFair: $20.44Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRM4 strengths · Avg: 8.5/10
Market CapQuality
$185.84B9/10

Large-cap with strong market position

Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.918/10

Growing faster than its price suggests

Free Cash FlowQuality
$5.32B8/10

Generating 5.3B in free cash flow

NOW3 strengths · Avg: 8.3/10
Market CapQuality
$121.21B9/10

Large-cap with strong market position

Revenue GrowthGrowth
20.7%8/10

Revenue surging 20.7% year-over-year

Free Cash FlowQuality
$2.00B8/10

Generating 2.0B in free cash flow

Areas to Watch

CRM2 concerns · Avg: 4.0/10
P/E RatioValuation
25.5x4/10

Moderate valuation

Altman Z-ScoreHealth
1.834/10

Grey zone — moderate risk

NOW4 concerns · Avg: 3.8/10
Price/BookValuation
8.9x4/10

Trading at 8.9x book value

EPS GrowthGrowth
3.4%4/10

3.4% earnings growth

Altman Z-ScoreHealth
1.654/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : CRM

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

Bull Case : NOW

The strongest argument for NOW centers on Market Cap, Revenue Growth, Free Cash Flow. Revenue growth of 20.7% demonstrates continued momentum. PEG of 1.10 suggests the stock is reasonably priced for its growth.

Bear Case : CRM

The primary concerns for CRM are P/E Ratio, Altman Z-Score.

Bear Case : NOW

The primary concerns for NOW are Price/Book, EPS Growth, Altman Z-Score. A P/E of 68.8x leaves little room for execution misses.

Key Dynamics to Monitor

CRM profiles as a mature stock while NOW is a growth play — different risk/reward profiles.

CRM carries more volatility with a beta of 1.31 — expect wider price swings.

NOW is growing revenue faster at 20.7% — sustainability is the question.

CRM generates stronger free cash flow (5.3B), providing more financial flexibility.

Bottom Line

CRM scores higher overall (65/100 vs 56/100), backed by strong 18.0% margins and 12.1% 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.

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ServiceNow Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

ServiceNow is an American software company based in Santa Clara, California that develops a cloud computing platform to help companies manage digital workflows for enterprise operations.

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