WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Salesforce.com Inc generates 1946% more annual revenue ($42.83B vs $2.09B). PAYC leads profitability with a 22.4% profit margin vs 18.7%. PAYC appears more attractively valued with a PEG of 0.97. PAYC earns a higher WallStSmart Score of 75/100 (B).

CRM

Strong Buy

71

out of 100

Grade: B

Growth: 7.3Profit: 7.5Value: 7.3Quality: 4.5
Piotroski: 5/9Altman Z: 1.50

PAYC

Strong Buy

75

out of 100

Grade: B

Growth: 7.3Profit: 8.5Value: 8.7Quality: 4.5
Piotroski: 2/9Altman Z: 1.21
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CRMUndervalued (+74.7%)

Margin of Safety

+74.7%

Fair Value

$722.63

Current Price

$185.66

$536.97 discount

UndervaluedFair: $722.63Overvalued
PAYCUndervalued (+68.5%)

Margin of Safety

+68.5%

Fair Value

$376.50

Current Price

$137.62

$238.88 discount

UndervaluedFair: $376.50Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRM5 strengths · Avg: 8.8/10
EPS GrowthGrowth
52.2%10/10

Earnings expanding 52.2% YoY

Market CapQuality
$164.49B9/10

Large-cap with strong market position

Return on EquityProfitability
23.4%9/10

Every $100 of equity generates 23 in profit

Operating MarginProfitability
21.8%8/10

Strong operational efficiency at 21.8%

Free Cash FlowQuality
$6.56B8/10

Generating 6.6B in free cash flow

PAYC6 strengths · Avg: 8.8/10
Return on EquityProfitability
57.9%10/10

Every $100 of equity generates 58 in profit

Operating MarginProfitability
36.8%10/10

Strong operational efficiency at 36.8%

Profit MarginProfitability
22.4%9/10

Keeps 22 of every $100 in revenue as profit

PEG RatioValuation
0.978/10

Growing faster than its price suggests

P/E RatioValuation
15.6x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
22.6%8/10

Earnings expanding 22.6% YoY

Areas to Watch

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

Distress zone — elevated risk

Debt/EquityHealth
1.223/10

Elevated debt levels

PAYC2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Altman Z-ScoreHealth
1.212/10

Distress zone — elevated risk

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 18.7% and operating margin at 21.8%. Revenue growth of 13.3% 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 22.4% and operating margin at 36.8%. PEG of 0.97 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 Piotroski F-Score, Altman Z-Score.

Key Dynamics to Monitor

CRM carries more volatility with a beta of 1.14 — expect wider price swings.

CRM is growing revenue faster at 13.3% — sustainability is the question.

CRM generates stronger free cash flow (6.6B), providing more financial flexibility.

Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PAYC scores higher overall (75/100 vs 71/100), backed by strong 22.4% margins. CRM offers better value entry with a 74.7% 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.

Want to dig deeper into these stocks?