Salesforce.com (NYSE: CRM) is one of 24 public companies in the “Cloud Computing Services” industry, but how does it contrast to its rivals? We will compare Salesforce.com to related companies based on the strength of its institutional ownership, profitability, earnings, valuation, analyst recommendations, dividends and risk.

Analyst Ratings

This is a summary of recent ratings and target prices for Salesforce.com and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Salesforce.com 1 4 44 0 2.88
Salesforce.com Competitors 100 522 1518 47 2.69

Salesforce.com presently has a consensus price target of $102.55, suggesting a potential upside of 8.37%. As a group, “Cloud Computing Services” companies have a potential upside of 3.79%. Given Salesforce.com’s stronger consensus rating and higher probable upside, analysts plainly believe Salesforce.com is more favorable than its rivals.

Earnings and Valuation

This table compares Salesforce.com and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Salesforce.com $9.39 billion $464.08 million -860.27
Salesforce.com Competitors $939.15 million $24.07 million -78.30

Salesforce.com has higher revenue and earnings than its rivals. Salesforce.com is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Salesforce.com has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, Salesforce.com’s rivals have a beta of 0.95, suggesting that their average stock price is 5% less volatile than the S&P 500.

Profitability

This table compares Salesforce.com and its rivals’ 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%
Salesforce.com Competitors -50.21% -38.64% -14.03%

Institutional and Insider Ownership

87.0% of Salesforce.com shares are held by institutional investors. Comparatively, 58.1% of shares of all “Cloud Computing Services” companies are held by institutional investors. 6.7% of Salesforce.com shares are held by insiders. Comparatively, 22.0% of shares of all “Cloud Computing Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Salesforce.com beats its rivals on 11 of the 13 factors compared.

Salesforce.com Company Profile

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.

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