Comparison shows CRM stock is a better pick over ORCL stock due to lower valuation and growth.

From Nasdaq: 2024-12-10 23:59:56

In a comparison of Salesforce stock (CRM) and Oracle stock (ORCL), CRM appears to be a better pick due to its lower valuation, better revenue growth, and lower financial risk. ORCL stock has outperformed CRM stock in the last three years, but CRM has seen stronger revenue growth driven by cloud-based offerings and AI technology.

Looking ahead, both Salesforce and Oracle are expected to benefit from the rising demand for cloud and AI. Oracle is investing in AI infrastructure and has partnerships with key players in the industry. Both companies are projected to see low double-digit average annual sales growth over the next three years.

When it comes to profitability, Oracle has a higher adjusted net income margin compared to Salesforce. However, Salesforce has a lower financial risk with lower debt and higher cash reserves. This makes CRM a more attractive choice for investors based on revenue growth and lower financial risk. The gap in valuation multiples between the two stocks is expected to narrow in favor of CRM due to increasing AI-based cloud demand. 1. The stock market reached new highs today, with the S&P 500 hitting a record close of 4,300 and the Dow Jones Industrial Average climbing to 34,500. Tech stocks saw the biggest gains, with companies like Apple and Amazon leading the charge.

2. In other news, the latest jobs report revealed a decrease in unemployment rates, with only 5.8% of Americans currently without work. This marks a significant improvement from last month’s 6.1% rate, as businesses continue to hire and the economy shows signs of recovery.

3. The housing market is also booming, with home prices reaching an all-time high in June. The median price for existing homes jumped to $350,000, up 23.4% from the previous year. Low mortgage rates and high demand are driving the surge in prices, making it a competitive market for buyers.

4. On the international front, tensions are rising between the US and China over trade disputes and human rights issues. The US recently imposed sanctions on Chinese officials for their role in human rights abuses in Xinjiang, prompting China to retaliate with sanctions of their own. The situation is escalating, with both countries showing no signs of backing down.



Read more at Nasdaq: CRM Stock vs. ORCL Stock