Benzinga
Published May 01, 2024 16:00
Updated May 01, 2024 17:12
Insights Into Salesforce's Performance Versus Peers In Software Sector
Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Amidst today's fast-paced and highly competitive business environment, it is crucial for investors and industry enthusiasts to conduct comprehensive company evaluations. In this article, we will delve into an extensive industry comparison, evaluating Salesforce (NYSE:CRM) in comparison to its major competitors within the Software industry. By analyzing critical financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of company's performance in the industry.
Salesforce Background Salesforce Inc provides enterprise cloud computing solutions. The company offers customer relationship management technology that brings companies and customers together. Its Customer 360 platform helps the group to deliver a single source of truth, connecting customer data across systems, apps, and devices to help companies sell, service, market, and conduct commerce. It also offers Service Cloud for customer support, Marketing Cloud for digital marketing campaigns, Commerce Cloud as an e-commerce engine, the Salesforce Platform, which allows enterprises to build applications, and other solutions, such as MuleSoft for data integration.
Salesforce Inc | 64.03 | 4.37 | 7.59 | 2.46% | $2.75 | $7.14 | 10.77% |
SAP SE | 83.79 | 4.59 | 6.29 | -1.92% | $-0.42 | $5.76 | 8.06% |
Adobe Inc | 44.18 | 13.40 | 10.63 | 3.88% | $1.21 | $4.59 | 11.32% |
Intuit Inc | 63.90 | 10.36 | 11.75 | 2.08% | $0.6 | $2.53 | 11.34% |
Synopsys Inc | 58.56 | 12.13 | 13.44 | 7.01% | $0.53 | $1.32 | 21.15% |
Cadence Design Systems Inc | 71.75 | 21.02 | 18.44 | 7.1% | $0.36 | $0.88 | -1.23% |
Workday Inc | 46.97 | 8 | 8.94 | 16.16% | $0.24 | $1.46 | 16.75% |
Roper Technologies Inc | 37.53 | 3.07 | 8.61 | 2.17% | $0.73 | $1.18 | 4.16% |
Palantir Technologies Inc | 244.11 | 14.08 | 22.69 | 2.8% | $0.11 | $0.5 | 19.61% |
Autodesk Inc | 50.80 | 24.55 | 8.36 | 16.9% | $0.35 | $1.34 | 3.89% |
Datadog Inc | 896.43 | 20.71 | 20.66 | 2.82% | $0.07 | $0.48 | 25.62% |
Ansys Inc | 56.69 | 5.26 | 12.50 | 5.29% | $0.37 | $0.74 | 15.99% |
AppLovin Corp | 71.96 | 18.47 | 7.79 | 14.58% | $0.37 | $0.68 | 35.73% |
PTC Inc | 89.62 | 7.56 | 9.74 | 2.42% | $0.16 | $0.44 | 18.09% |
Tyler Technologies Inc | 104.66 | 6.48 | 9.94 | 1.82% | $0.11 | $0.22 | 8.58% |
Zoom Video Communications Inc | 29.52 | 2.34 | 4.16 | 3.87% | $0.2 | $0.87 | 2.56% |
Bentley Systems Inc | 52.49 | 17.82 | 14.21 | 22.81% | $0.05 | $0.24 | 8.26% |
NICE Ltd | 43.73 | 4.22 | 6.23 | 2.49% | $0.19 | $0.42 | 9.61% |
Dynatrace Inc | 68.65 | 7.01 | 9.87 | 2.3% | $0.05 | $0.3 | 22.74% |
Manhattan Associates Inc | 67.34 | 52.95 | 13.39 | 20.78% | $0.06 | $0.14 | 15.18% |
Average | 114.88 | 13.37 | 11.45 | 7.12% | $0.28 | $1.27 | 13.55% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } Through a meticulous analysis of Salesforce, we can observe the following trends:
Debt To Equity Ratio
The debt-to-equity (D/E) ratio is a key indicator of a company's financial health and its reliance on debt financing.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
When examining Salesforce in comparison to its top 4 peers with respect to the Debt-to-Equity ratio, the following information becomes apparent:
Key Takeaways In comparison to its peers in the Software industry, Salesforce exhibits low PE, PB, and PS ratios, indicating potential undervaluation. However, the company's low ROE suggests lower profitability compared to industry peers. On the positive side, Salesforce demonstrates high EBITDA and gross profit figures, reflecting strong operational performance. The low revenue growth rate may raise concerns about the company's future prospects in the competitive industry landscape.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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