salesforce.com (NYSE:CRM) and Fair Isaac (NYSE:FICO) are both large-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.
Volatility & Risk
salesforce.com has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Fair Isaac has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.
Earnings & Valuation
This table compares salesforce.com and Fair Isaac's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
salesforce.com | $17.10 billion | 12.08 | $126 million | $1.02 | 221.34 |
Fair Isaac | $1.29 billion | 11.15 | $236.41 million | $8.55 | 58.03 |
Fair Isaac has lower revenue, but higher earnings than salesforce.com. Fair Isaac is trading at a lower price-to-earnings ratio than salesforce.com, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
80.2% of salesforce.com shares are owned by institutional investors. Comparatively, 84.9% of Fair Isaac shares are owned by institutional investors. 4.4% of salesforce.com shares are owned by insiders. Comparatively, 3.8% of Fair Isaac shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares salesforce.com and Fair Isaac's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
salesforce.com | 17.53% | 6.63% | 4.32% |
Fair Isaac | 18.26% | 98.78% | 16.29% |
Analyst Recommendations
This is a summary of recent ratings and price targets for salesforce.com and Fair Isaac, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
salesforce.com | 1 | 7 | 27 | 3 | 2.84 |
Fair Isaac | 0 | 1 | 7 | 0 | 2.88 |
salesforce.com currently has a consensus price target of $264.00, indicating a potential upside of 16.93%. Fair Isaac has a consensus price target of $502.8571, indicating a potential upside of 1.35%. Given salesforce.com's higher probable upside, research analysts clearly believe salesforce.com is more favorable than Fair Isaac.
Summary
Fair Isaac beats salesforce.com on 9 of the 15 factors compared between the two stocks.