WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Salesforce.com Inc generates 198% more annual revenue ($43.94B vs $14.73B). CRM leads profitability with a 22.0% profit margin vs 11.3%. CRM appears more attractively valued with a PEG of 0.90. CRM earns a higher WallStSmart Score of 74/100 (B).

CRM

Strong Buy

74

out of 100

Grade: B

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

NOW

Hold

49

out of 100

Grade: D+

Growth: 6.7Profit: 5.5Value: 6.7Quality: 4.0
Piotroski: 1/9Altman Z: 1.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CRMUndervalued (+65.7%)

Margin of Safety

+65.7%

Fair Value

$721.77

Current Price

$255.65

$466.12 discount

UndervaluedFair: $721.77Overvalued
NOWUndervalued (+78.9%)

Margin of Safety

+78.9%

Fair Value

$626.98

Current Price

$141.90

$485.08 discount

UndervaluedFair: $626.98Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRM6 strengths · Avg: 9.0/10
Market CapQuality
$203.87B10/10

Mega-cap, among the largest globally

EPS GrowthGrowth
118.9%10/10

Earnings expanding 118.9% YoY

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
0.908/10

Growing faster than its price suggests

Operating MarginProfitability
21.4%8/10

Strong operational efficiency at 21.4%

NOW3 strengths · Avg: 8.3/10
Market CapQuality
$137.02B9/10

Large-cap with strong market position

PEG RatioValuation
0.958/10

Growing faster than its price suggests

Revenue GrowthGrowth
24.0%8/10

Revenue surging 24.0% year-over-year

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

NOW4 concerns · Avg: 3.5/10
Price/BookValuation
11.7x4/10

Trading at 11.7x book value

Altman Z-ScoreHealth
1.654/10

Distress zone — elevated risk

Operating MarginProfitability
4.1%3/10

Operating margin of 4.1%

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, EPS Growth, 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 : NOW

The strongest argument for NOW centers on Market Cap, PEG Ratio, Revenue Growth. Revenue growth of 24.0% demonstrates continued momentum. PEG of 0.95 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 : NOW

The primary concerns for NOW are Price/Book, Altman Z-Score, Operating Margin. A P/E of 81.8x 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 1.20 — expect wider price swings.

NOW is growing revenue faster at 24.0% — sustainability is the question.

CRM generates stronger free cash flow (1.1B), providing more financial flexibility.

Bottom Line

CRM scores higher overall (74/100 vs 49/100), backed by strong 22.0% margins and 10.8% revenue growth. NOW offers better value entry with a 78.9% margin of safety. Both earn "Strong Buy" and "Hold" 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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