Salesforce.com (NYSE: CRM) and Marin Software (NYSE:MRIN) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitabiliy, analyst recommendations, earnings and valuation.

Profitability

This table compares Salesforce.com and Marin Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Salesforce.com 1.49% 1.80% 0.80%
Marin Software -19.56% -17.15% -14.01%

Analyst Ratings

This is a summary of recent ratings for Salesforce.com and Marin Software, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Salesforce.com 1 4 38 0 2.86
Marin Software 0 1 0 0 2.00

Salesforce.com currently has a consensus price target of $97.13, indicating a potential upside of 7.92%. Marin Software has a consensus price target of $2.00, indicating a potential upside of 63.27%. Given Marin Software’s higher possible upside, analysts plainly believe Marin Software is more favorable than Salesforce.com.

Volatility & Risk

Salesforce.com has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, Marin Software has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.

Institutional & Insider Ownership

85.6% of Salesforce.com shares are owned by institutional investors. Comparatively, 32.8% of Marin Software shares are owned by institutional investors. 6.7% of Salesforce.com shares are owned by insiders. Comparatively, 20.8% of Marin Software shares 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.

Valuation and Earnings

This table compares Salesforce.com and Marin Software’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Salesforce.com $8.86 billion 7.23 $448.89 million $0.20 450.00
Marin Software $93.02 million 0.52 -$8.55 million ($0.48) -2.55

Salesforce.com has higher revenue and earnings than Marin Software. Marin Software 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 Marin Software on 10 of the 13 factors compared between the two stocks.

Salesforce.com Company Profile

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.

Marin Software Company Profile

Marin Software Incorporated provides a cross-channel, cross-device, enterprise marketing software platform for search, display and social advertising channels. The Company’s enterprise marketing software platform is offered as an integrated software-as-a-service (SaaS) solution for advertisers and agencies. The Company’s platform enables digital marketers to manage performance of their online advertising campaigns. Its software solution is designed to help its customers measure the effectiveness of their advertising campaigns through its reporting and analytics capabilities; manage and execute campaigns through its user interface and underlying technology that streamlines and automates functions, such as advertisement creation and bidding, across multiple publishers and channels, and optimize campaigns across multiple publishers and channels based on market and business data using its predictive bid management technology.

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