Salesforce.com Inc (CRM)vsPegasystems Inc (PEGA)
CRM
Salesforce.com Inc
$181.96
-0.58%
TECHNOLOGY · Cap: $171.49B
PEGA
Pegasystems Inc
$41.49
-1.10%
TECHNOLOGY · Cap: $7.12B
Smart Verdict
WallStSmart Research — data-driven comparison
Salesforce.com Inc generates 2279% more annual revenue ($41.52B vs $1.75B). PEGA leads profitability with a 22.5% profit margin vs 18.0%. CRM appears more attractively valued with a PEG of 1.06. CRM earns a higher WallStSmart Score of 63/100 (C+).
CRM
Buy63
out of 100
Grade: C+
PEGA
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+34.2%
Fair Value
$276.43
Current Price
$181.96
$94.47 discount
Margin of Safety
+62.0%
Fair Value
$99.68
Current Price
$41.49
$58.19 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Conservative balance sheet, low leverage
Reasonable price relative to book value
Generating 5.3B in free cash flow
Every $100 of equity generates 57 in profit
Earnings expanding 104.3% YoY
Conservative balance sheet, low leverage
Keeps 23 of every $100 in revenue as profit
Strong operational efficiency at 24.9%
Areas to Watch
Grey zone — moderate risk
Trading at 9.0x book value
2.7% revenue growth
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull 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 : PEGA
The strongest argument for PEGA centers on Return on Equity, EPS Growth, Debt/Equity. Profitability is solid with margins at 22.5% and operating margin at 24.9%.
Bear Case : CRM
The primary concerns for CRM are Altman Z-Score.
Bear Case : PEGA
The primary concerns for PEGA are Price/Book, Revenue Growth, PEG Ratio.
Key Dynamics to Monitor
CRM profiles as a mature stock while PEGA is a value play — different risk/reward profiles.
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.
Bottom Line
CRM scores higher overall (63/100 vs 61/100), backed by strong 18.0% margins and 12.1% revenue growth. PEGA offers better value entry with a 62.0% margin of safety. Both earn "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.
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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