Salesforce.com Inc (CRM)vsPegasystems Inc (PEGA)
CRM
Salesforce.com Inc
$185.66
-0.81%
TECHNOLOGY · Cap: $164.49B
PEGA
Pegasystems Inc
$34.71
-2.06%
TECHNOLOGY · Cap: $5.47B
Smart Verdict
WallStSmart Research — data-driven comparison
Salesforce.com Inc generates 2419% more annual revenue ($42.83B vs $1.70B). PEGA leads profitability with a 20.0% profit margin vs 18.7%. CRM appears more attractively valued with a PEG of 1.02. CRM earns a higher WallStSmart Score of 71/100 (B).
CRM
Strong Buy71
out of 100
Grade: B
PEGA
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+74.7%
Fair Value
$722.63
Current Price
$185.66
$536.97 discount
Margin of Safety
+60.6%
Fair Value
$96.36
Current Price
$34.71
$61.65 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 52.2% YoY
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Strong operational efficiency at 21.8%
Generating 6.6B in free cash flow
Every $100 of equity generates 48 in profit
Conservative balance sheet, low leverage
Keeps 20 of every $100 in revenue as profit
Attractively priced relative to earnings
Areas to Watch
Distress zone — elevated risk
Elevated debt levels
Trading at 8.3x book value
Expensive relative to growth rate
Revenue declined 9.6%
Earnings declined 60.6%
Comparative Analysis Report
WallStSmart ResearchBull 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 : PEGA
The strongest argument for PEGA centers on Return on Equity, Debt/Equity, Profit Margin. Profitability is solid with margins at 20.0% and operating margin at 8.6%.
Bear Case : CRM
The primary concerns for CRM are Altman Z-Score, Debt/Equity.
Bear Case : PEGA
The primary concerns for PEGA are Price/Book, PEG Ratio, Revenue Growth.
Key Dynamics to Monitor
CRM profiles as a mature stock while PEGA is a declining play — different risk/reward profiles.
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.
Bottom Line
CRM scores higher overall (71/100 vs 45/100), backed by strong 18.7% margins and 13.3% revenue growth. PEGA offers better value entry with a 60.6% 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.
Visit Website →Pegasystems Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Pegasystems Inc. develops, markets, licenses, hosts and supports business software applications in the United States, the rest of the Americas, the United Kingdom, the rest of Europe, the Middle East, Africa, and Asia-Pacific. The company is headquartered in Cambridge, Massachusetts.
Visit Website →Compare with Other SOFTWARE - APPLICATION Stocks
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