salesforce.com (NYSE:CRM) & Altair Engineering (NYSE:ALTR) Head to Head Survey

salesforce.com (NYSE:CRM) and Altair Engineering (NASDAQ:ALTR) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for salesforce.com and Altair Engineering, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
salesforce.com 0 3 38 3 3.00
Altair Engineering 3 2 1 0 1.67

salesforce.com presently has a consensus price target of $201.27, suggesting a potential upside of 30.08%. Altair Engineering has a consensus price target of $32.80, suggesting a potential upside of 27.98%. Given salesforce.com’s stronger consensus rating and higher possible upside, research analysts plainly believe salesforce.com is more favorable than Altair Engineering.

Risk and Volatility

salesforce.com has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Altair Engineering has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.

Profitability

This table compares salesforce.com and Altair Engineering’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
salesforce.com 0.74% 3.61% 2.12%
Altair Engineering -1.64% 4.85% 2.44%

Insider and Institutional Ownership

82.3% of salesforce.com shares are held by institutional investors. Comparatively, 52.9% of Altair Engineering shares are held by institutional investors. 5.5% of salesforce.com shares are held by insiders. Comparatively, 29.3% of Altair Engineering shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares salesforce.com and Altair Engineering’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
salesforce.com $17.10 billion 8.10 $126.00 million $1.02 151.70
Altair Engineering $458.92 million 4.05 -$7.54 million $0.22 116.50

salesforce.com has higher revenue and earnings than Altair Engineering. Altair Engineering is trading at a lower price-to-earnings ratio than salesforce.com, indicating that it is currently the more affordable of the two stocks.

Summary

salesforce.com beats Altair Engineering on 11 of the 15 factors compared between the two stocks.

salesforce.com Company Profile

salesforce.com, inc. develops enterprise cloud computing solutions with a focus on customer relationship management. The company offers Sales Cloud to store data, monitor leads and progress, forecast opportunities, and gain insights through analytics and relationship intelligence, as well as deliver quotes, contracts, and invoices. It also provides Service Cloud, which enables companies to deliver personalized customer service and support, as well as a field service solution that enables companies to connect agents, dispatchers, and mobile employees through a centralized platform, which helps to schedule and dispatch work, and track and manage jobs in real-time. In addition, the company offers Marketing Cloud to plan, personalize, and optimize one-to-one customer marketing interactions; and Commerce Cloud, which enables companies to enhance engagement, conversion, revenue, and loyalty from their customers. Further, it provides Lightning Platform that offers no-code to pro-code Platform-as-a-Service tools for building, securing, integrating, and managing the business apps; Anypoint Platform enables customers to connect any system, application, data, or device; Quip collaboration platform, which combines documents, spreadsheets, apps, and chat with live CRM data; and Salesforce Customer 360, which enables companies to connect customer data across the various offerings for financial services, healthcare, and government. Additionally, the company offers consulting and implementation services; training services, including instructor-led and online courses; and support and adoption programs. It provides its services through direct sales; and consulting firms, systems integrators, and other partners. The company was founded in 1999 and is headquartered in San Francisco, California.

Altair Engineering Company Profile

Altair Engineering Inc., together with its subsidiaries, provides software and cloud solutions worldwide. The company operates through two segments, Software and Client Engineering Services. Its integrated suite of multi-disciplinary computer aided engineering software optimizes design performance across various disciplines, including structures, motion, fluids, thermal management, electromagnetics, system modeling and embedded systems. The company offers software products in the areas of design, modeling, visualization; physics simulation; data intelligence; cloud computing; and Internet of Things for decision making in product design and development, manufacturing, energy management and exploration, financial services, health care, and retail operations. It also provides consulting, training, and implementation services; and client engineering services to support customers with ongoing product design and development services. The company was founded in 1985 and is headquartered in Troy, Michigan.

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