WallStSmart

Salesforce.com Inc (CRM)vsRingcentral Inc (RNG)

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Smart Verdict

WallStSmart Research — data-driven comparison

Salesforce.com Inc generates 1600% more annual revenue ($43.94B vs $2.58B). CRM leads profitability with a 22.0% profit margin vs 4.3%. RNG appears more attractively valued with a PEG of 0.39. CRM earns a higher WallStSmart Score of 73/100 (B).

CRM

Strong Buy

73

out of 100

Grade: B

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

RNG

Buy

51

out of 100

Grade: C-

Growth: 7.3Profit: 4.5Value: 7.3Quality: 4.0
Piotroski: 6/9Altman Z: -0.17
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CRMUndervalued (+65.3%)

Margin of Safety

+65.3%

Fair Value

$713.65

Current Price

$242.11

$471.54 discount

UndervaluedFair: $713.65Overvalued
RNGUndervalued (+84.7%)

Margin of Safety

+84.7%

Fair Value

$183.63

Current Price

$86.20

$97.43 discount

UndervaluedFair: $183.63Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRM6 strengths · Avg: 8.8/10
EPS GrowthGrowth
118.9%10/10

Earnings expanding 118.9% YoY

Market CapQuality
$198.10B9/10

Large-cap with strong market position

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
0.788/10

Growing faster than its price suggests

Operating MarginProfitability
21.4%8/10

Strong operational efficiency at 21.4%

RNG2 strengths · Avg: 10.0/10
PEG RatioValuation
0.3910/10

Growing faster than its price suggests

EPS GrowthGrowth
221.4%10/10

Earnings expanding 221.4% YoY

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

RNG4 concerns · Avg: 2.3/10
Profit MarginProfitability
4.3%3/10

4.3% margin — thin

P/E RatioValuation
60.4x2/10

Premium valuation, high expectations priced in

Return on EquityProfitability
-689.0%2/10

ROE of -689.0% — below average capital efficiency

Altman Z-ScoreHealth
-0.172/10

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 22.0% and operating margin at 21.4%. Revenue growth of 10.8% demonstrates continued momentum.

Bull Case : RNG

The strongest argument for RNG centers on PEG Ratio, EPS Growth. PEG of 0.39 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 : RNG

The primary concerns for RNG are Profit Margin, P/E Ratio, Return on Equity. A P/E of 60.4x leaves little room for execution misses. Debt-to-equity of 5.52 is elevated, increasing financial risk.

Key Dynamics to Monitor

CRM profiles as a mature stock while RNG is a value play — different risk/reward profiles.

CRM carries more volatility with a beta of 1.26 — expect wider price swings.

CRM is growing revenue faster at 10.8% — sustainability is the question.

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

Bottom Line

CRM scores higher overall (73/100 vs 51/100), backed by strong 22.0% margins and 10.8% revenue growth. RNG offers better value entry with a 84.7% 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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Ringcentral Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

RingCentral, Inc. offers software-as-a-service solutions that enable businesses to communicate, collaborate, and connect in North America. The company is headquartered in Belmont, California.

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