WallStSmart

Salesforce.com Inc (CRM)vsZoom Video Communications Inc (ZM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Salesforce.com Inc generates 753% more annual revenue ($41.52B vs $4.87B). ZM leads profitability with a 39.0% profit margin vs 18.0%. CRM appears more attractively valued with a PEG of 1.06. ZM earns a higher WallStSmart Score of 70/100 (B-).

CRM

Buy

63

out of 100

Grade: C+

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

ZM

Strong Buy

70

out of 100

Grade: B-

Growth: 6.7Profit: 8.0Value: 7.3Quality: 7.8
Piotroski: 4/9Altman Z: 5.01
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
ZMUndervalued (+68.1%)

Margin of Safety

+68.1%

Fair Value

$289.22

Current Price

$78.11

$211.11 discount

UndervaluedFair: $289.22Overvalued

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

ZM6 strengths · Avg: 9.2/10
Profit MarginProfitability
39.0%10/10

Keeps 39 of every $100 in revenue as profit

EPS GrowthGrowth
91.5%10/10

Earnings expanding 91.5% YoY

Altman Z-ScoreHealth
5.0110/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
20.3%9/10

Every $100 of equity generates 20 in profit

P/E RatioValuation
12.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Areas to Watch

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

Grey zone — moderate risk

ZM1 concerns · Avg: 2.0/10
PEG RatioValuation
4.212/10

Expensive relative to growth rate

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 : ZM

The strongest argument for ZM centers on Profit Margin, EPS Growth, Altman Z-Score. Profitability is solid with margins at 39.0% and operating margin at 21.5%.

Bear Case : CRM

The primary concerns for CRM are Altman Z-Score.

Bear Case : ZM

The primary concerns for ZM are PEG Ratio.

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

ZM scores higher overall (70/100 vs 63/100), backed by strong 39.0% margins. 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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Zoom Video Communications Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Zoom Video Communications, Inc. provides a premier video communications platform in the Americas, Asia Pacific, Europe, the Middle East, and Africa. The company is headquartered in San Jose, California.

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