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

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 -57.49% -45.40% -16.58%

Earnings & Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Salesforce.com $9.39 billion $464.08 million -854.00
Salesforce.com Competitors $933.33 million $18.40 million -79.30

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.

Volatility and Risk

Salesforce.com has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Salesforce.com’s rivals have a beta of 0.95, indicating that their average stock price is 5% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Salesforce.com and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Salesforce.com 1 4 43 0 2.88
Salesforce.com Competitors 101 527 1525 47 2.69

Salesforce.com currently has a consensus price target of $102.83, suggesting a potential upside of 9.46%. As a group, “Cloud Computing Services” companies have a potential upside of 0.01%. Given Salesforce.com’s stronger consensus rating and higher possible upside, research analysts clearly believe Salesforce.com is more favorable than its rivals.

Institutional and Insider Ownership

86.1% of Salesforce.com shares are owned by institutional investors. Comparatively, 58.5% of shares of all “Cloud Computing Services” companies are owned by institutional investors. 6.2% of Salesforce.com shares are owned by insiders. Comparatively, 20.2% of shares of all “Cloud Computing Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

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

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.

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