Salesforce.com Inc (CRM)vsPaycom Software, Inc. (PAYC)
CRM
Salesforce.com Inc
$242.11
-4.61%
TECHNOLOGY · Cap: $198.10B
PAYC
Paycom Software, Inc.
$262.79
+0.32%
TECHNOLOGY · Cap: $11.34B
Smart Verdict
WallStSmart Research — data-driven comparison
Salesforce.com Inc generates 1953% more annual revenue ($43.94B vs $2.14B). PAYC leads profitability with a 22.8% profit margin vs 22.0%. CRM appears more attractively valued with a PEG of 0.78. PAYC earns a higher WallStSmart Score of 74/100 (B).
CRM
Strong Buy73
out of 100
Grade: B
PAYC
Strong Buy74
out of 100
Grade: B
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
+74.5%
Fair Value
$465.15
Current Price
$262.79
$202.36 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%
Every $100 of equity generates 85 in profit
Strong operational efficiency at 31.7%
Keeps 23 of every $100 in revenue as profit
Earnings expanding 48.1% YoY
Areas to Watch
Distress zone — elevated risk
Elevated debt levels
Moderate valuation
Trading at 20.0x book value
Elevated debt levels
Weak financial health signals
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 : PAYC
The strongest argument for PAYC centers on Return on Equity, Operating Margin, Profit Margin. Profitability is solid with margins at 22.8% and operating margin at 31.7%. PEG of 1.17 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 : PAYC
The primary concerns for PAYC are P/E Ratio, Price/Book, Debt/Equity. Debt-to-equity of 1.72 is elevated, increasing financial risk.
Key Dynamics to Monitor
CRM carries more volatility with a beta of 1.26 — expect wider price swings.
CRM is growing revenue faster at 10.8% — sustainability is the question.
CRM generates stronger free cash flow (1.1B), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PAYC scores higher overall (74/100 vs 73/100), backed by strong 22.8% margins. CRM offers better value entry with a 65.3% margin of safety. Both earn "Strong Buy" and "Strong 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 →Paycom Software, Inc.
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Paycom Software, Inc., known simply as Paycom, is an American online payroll and human resource technology provider based in Oklahoma City, Oklahoma.
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