WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Salesforce.com Inc generates 197% more annual revenue ($41.52B vs $13.96B). CRM leads profitability with a 18.0% profit margin vs 12.6%. NOW appears more attractively valued with a PEG of 0.88. CRM earns a higher WallStSmart Score of 70/100 (B).

CRM

Strong Buy

70

out of 100

Grade: B

Growth: 6.7Profit: 7.0Value: 8.0Quality: 6.0
Piotroski: 5/9Altman Z: 1.83

NOW

Buy

59

out of 100

Grade: C

Growth: 7.3Profit: 6.5Value: 6.7Quality: 3.8
Piotroski: 1/9Altman Z: 1.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CRMUndervalued (+75.1%)

Margin of Safety

+75.1%

Fair Value

$745.75

Current Price

$183.82

$561.93 discount

UndervaluedFair: $745.75Overvalued
NOWUndervalued (+85.5%)

Margin of Safety

+85.5%

Fair Value

$633.65

Current Price

$91.16

$542.49 discount

UndervaluedFair: $633.65Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRM5 strengths · Avg: 8.4/10
Market CapQuality
$151.73B9/10

Large-cap with strong market position

Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

PEG RatioValuation
1.008/10

Growing faster than its price suggests

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$5.32B8/10

Generating 5.3B in free cash flow

NOW4 strengths · Avg: 8.3/10
Market CapQuality
$94.85B9/10

Large-cap with strong market position

PEG RatioValuation
0.888/10

Growing faster than its price suggests

Revenue GrowthGrowth
22.1%8/10

Revenue surging 22.1% year-over-year

Free Cash FlowQuality
$1.53B8/10

Generating 1.5B in free cash flow

Areas to Watch

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

Grey zone — moderate risk

NOW4 concerns · Avg: 3.8/10
Price/BookValuation
8.0x4/10

Trading at 8.0x book value

EPS GrowthGrowth
2.3%4/10

2.3% 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, PEG Ratio, Revenue Growth. Revenue growth of 22.1% demonstrates continued momentum. PEG of 0.88 suggests the stock is reasonably priced for its growth.

Bear Case : CRM

The primary concerns for CRM are Altman Z-Score.

Bear Case : NOW

The primary concerns for NOW are Price/Book, EPS Growth, Altman Z-Score. A P/E of 54.4x 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 1.14 — expect wider price swings.

NOW is growing revenue faster at 22.1% — sustainability is the question.

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

Bottom Line

CRM scores higher overall (70/100 vs 59/100), backed by strong 18.0% margins and 12.1% revenue growth. NOW offers better value entry with a 85.5% 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.

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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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