WallStSmart

Salesforce.com Inc (CRM)vsPaycom Software, Inc. (PAYC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Salesforce.com Inc generates 1924% more annual revenue ($41.52B vs $2.05B). PAYC leads profitability with a 22.1% profit margin vs 18.0%. CRM appears more attractively valued with a PEG of 1.06. PAYC earns a higher WallStSmart Score of 69/100 (B-).

CRM

Buy

63

out of 100

Grade: C+

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

PAYC

Strong Buy

69

out of 100

Grade: B-

Growth: 6.0Profit: 8.5Value: 7.3Quality: 4.3
Piotroski: 2/9Altman Z: 1.45
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
PAYCSignificantly Overvalued (-44.6%)

Margin of Safety

-44.6%

Fair Value

$82.09

Current Price

$119.82

$37.73 premium

UndervaluedFair: $82.09Overvalued

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

PAYC4 strengths · Avg: 8.5/10
Return on EquityProfitability
27.4%9/10

Every $100 of equity generates 27 in profit

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

P/E RatioValuation
14.7x8/10

Attractively priced relative to earnings

Operating MarginProfitability
28.9%8/10

Strong operational efficiency at 28.9%

Areas to Watch

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

Grey zone — moderate risk

PAYC3 concerns · Avg: 3.0/10
EPS GrowthGrowth
2.1%4/10

2.1% earnings growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Altman Z-ScoreHealth
1.452/10

Distress zone — elevated risk

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 : PAYC

The strongest argument for PAYC centers on Return on Equity, Profit Margin, P/E Ratio. Profitability is solid with margins at 22.1% and operating margin at 28.9%. Revenue growth of 10.2% demonstrates continued momentum.

Bear Case : CRM

The primary concerns for CRM are Altman Z-Score.

Bear Case : PAYC

The primary concerns for PAYC are EPS Growth, Piotroski F-Score, Altman Z-Score.

Key Dynamics to Monitor

CRM carries more volatility with a beta of 1.31 — 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

PAYC scores higher overall (69/100 vs 63/100), backed by strong 22.1% margins and 10.2% revenue growth. 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.

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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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