WallStSmart

Salesforce.com Inc (CRM)vsVertex (VERX)

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Smart Verdict

WallStSmart Research — data-driven comparison

Salesforce.com Inc generates 5480% more annual revenue ($43.94B vs $787.44M). CRM leads profitability with a 22.0% profit margin vs 0.5%. CRM trades at a lower P/E of 21.4x. CRM earns a higher WallStSmart Score of 73/100 (B).

CRM

Strong Buy

73

out of 100

Grade: B

Growth: 7.3Profit: 8.0Value: 8.0Quality: 4.5
Piotroski: 5/9Altman Z: 1.50

VERX

Avoid

31

out of 100

Grade: F

Growth: 5.3Profit: 3.5Value: 5.7Quality: 3.0
Piotroski: 3/9Altman Z: 0.70
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CRMUndervalued (+66.9%)

Margin of Safety

+66.9%

Fair Value

$719.75

Current Price

$234.02

$485.73 discount

UndervaluedFair: $719.75Overvalued
VERXUndervalued (+55.3%)

Margin of Safety

+55.3%

Fair Value

$28.69

Current Price

$11.37

$17.32 discount

UndervaluedFair: $28.69Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRM6 strengths · Avg: 8.8/10
EPS GrowthGrowth
118.9%10/10

Earnings expanding 118.9% YoY

Market CapQuality
$195.53B9/10

Large-cap with strong market position

Return on EquityProfitability
25.2%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
22.0%9/10

Keeps 22 of every $100 in revenue as profit

PEG RatioValuation
0.788/10

Growing faster than its price suggests

Operating MarginProfitability
21.4%8/10

Strong operational efficiency at 21.4%

VERX0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

CRM2 concerns · Avg: 3.5/10
Altman Z-ScoreHealth
1.504/10

Distress zone — elevated risk

Debt/EquityHealth
1.093/10

Elevated debt levels

VERX4 concerns · Avg: 3.0/10
Market CapQuality
$1.96B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
0.5%3/10

0.5% margin — thin

Operating MarginProfitability
3.4%3/10

Operating margin of 3.4%

Debt/EquityHealth
1.453/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull 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 : VERX

Revenue growth of 10.5% demonstrates continued momentum.

Bear Case : CRM

The primary concerns for CRM are Altman Z-Score, Debt/Equity.

Bear Case : VERX

The primary concerns for VERX are Market Cap, Profit Margin, Operating Margin. A P/E of 604.0x leaves little room for execution misses. Thin 0.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

CRM profiles as a mature stock while VERX is a value play — different risk/reward profiles.

CRM carries more volatility with a beta of 1.20 — 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.

Bottom Line

CRM scores higher overall (73/100 vs 31/100), backed by strong 22.0% margins and 10.8% revenue growth. VERX offers better value entry with a 55.3% margin of safety. Both earn "Strong Buy" and "Avoid" 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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Vertex

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Vertex, Inc. provides tax technology solutions for corporations in the retail, communications, leasing, and manufacturing industries in the United States and internationally. The company is headquartered in King of Prussia, Pennsylvania.

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