Salesforce.com (NYSE: CRM) and GTT Communications (NYSE:GTT) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for Salesforce.com and GTT Communications, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Salesforce.com 1 4 44 0 2.88
GTT Communications 0 0 6 0 3.00

Salesforce.com presently has a consensus price target of $102.55, indicating a potential upside of 6.35%. GTT Communications has a consensus price target of $35.33, indicating a potential upside of 19.17%. Given GTT Communications’ stronger consensus rating and higher possible upside, analysts plainly believe GTT Communications is more favorable than Salesforce.com.

Profitability

This table compares Salesforce.com and GTT Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Salesforce.com -0.85% 1.83% 0.84%
GTT Communications -1.88% 4.17% 0.61%

Earnings & Valuation

This table compares Salesforce.com and GTT Communications’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Salesforce.com $9.39 billion 7.38 $464.08 million ($0.11) -876.64
GTT Communications $636.92 million 1.93 $150.79 million ($0.28) -105.89

Salesforce.com has higher revenue and earnings than GTT Communications. Salesforce.com is trading at a lower price-to-earnings ratio than GTT Communications, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Salesforce.com has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, GTT Communications has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500.

Institutional & Insider Ownership

87.0% of Salesforce.com shares are held by institutional investors. Comparatively, 59.8% of GTT Communications shares are held by institutional investors. 6.7% of Salesforce.com shares are held by company insiders. Comparatively, 25.7% of GTT Communications shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Salesforce.com beats GTT Communications on 9 of the 14 factors compared between the two stocks.

About Salesforce.com

Salesforce.com, inc. is a provider of enterprise software, delivered through the cloud, with a focus on customer relationship management (CRM). The Company focuses on cloud, mobile, social, Internet of Things (IoT) and artificial intelligence technologies. The Company’s service offerings are configured and integrated with other platforms and enterprise applications. The Company delivers its service offerings via Internet browsers and on mobile devices. Its Customer Success Platform is a portfolio of service offerings providing sales force automation, customer service and support, marketing automation, digital commerce, community management, analytics, application development, IoT integration, collaborative productivity tools and its professional cloud services. Its cloud service offerings include Sales Cloud, Service Cloud, Marketing Cloud, Commerce Cloud, Community Cloud, Analytics Cloud, Salesforce Quip and Salesforce Platform.

About GTT Communications

GTT Communications, Inc. provides cloud networking services to a range of clients. The Company offers a portfolio of global communications services, wide area network (WAN) services; Internet services; managed network and security services, and voice and unified communication services. It provides Layer 2 (Ethernet) and Layer 3 (multiprotocol label switching (MPLS)) WAN solutions for multinational clients. It offers customers with high-bandwidth global Internet connectivity and Internet protocol (IP) transit with availability and packet delivery. The Company offers managed network services, including managed equipment, managed security services and managed remote access. Its Session Initiation Protocol (SIP) Trunking service is an enterprise-built unified communications offering that integrates voice, video and chat onto a single IP connection. As of December 31, 2016, it had provided services to multinational enterprises, carriers and government customers in over 100 countries.

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