Critical Review: Salesforce (NYSE:CRM) & Elcom International (OTCMKTS:ELCO)

Salesforce (NYSE:CRM) and Elcom International (OTCMKTS:ELCO) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Profitability

This table compares Salesforce and Elcom International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Salesforce	17.96%	15.38%	9.19%
Elcom International	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and recommmendations for Salesforce and Elcom International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Salesforce	3	10	25	1	2.62
Elcom International	0	0	0	0	0.00

Salesforce currently has a consensus target price of $274.12, suggesting a potential upside of 52.70%. Given Salesforce’s stronger consensus rating and higher probable upside, research analysts plainly believe Salesforce is more favorable than Elcom International.

Risk & Volatility

Salesforce has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, Elcom International has a beta of -0.11, meaning that its stock price is 111% less volatile than the S&P 500.

Earnings & Valuation

This table compares Salesforce and Elcom International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Salesforce	$41.53 billion	3.54	$7.46 billion	$7.81	22.98
Elcom International	N/A	N/A	N/A	N/A	N/A

Salesforce has higher revenue and earnings than Elcom International.

Institutional and Insider Ownership

80.4% of Salesforce shares are owned by institutional investors. 3.5% of Salesforce shares are owned by insiders. Comparatively, 13.6% of Elcom International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Salesforce beats Elcom International on 10 of the 11 factors compared between the two stocks.

About Salesforce

Salesforce, Inc. provides Customer Relationship Management (CRM) technology that brings companies and customers together worldwide. The company's service includes sales to store data, monitor leads and progress, forecast opportunities, gain insights through analytics and artificial intelligence, and deliver quotes, contracts, and invoices; and service that enables companies to deliver trusted and highly personalized customer support at scale. In addition, its platform offering comprise a flexible platform that enables companies of various sizes, locations, and industries to build business workflow and apps with customer; online learning platform that allows anyone to learn in-demand Salesforce skills; and Slack, an intelligent productivity platform. The company's marketing services enables companies to plan, personalize, automate, and optimize customer marketing journey, connecting interaction, and connected products; and commerce services, which empowers shopping experience across various customer touchpoint, such as mobile, web, social, and stores and provides click-to-code tools that offers customers to build and deploy solutions. Further, its analytics offering includes Tableau, an end-to-end analytics solution for range of enterprise use cases and intelligent analytics with AI models, spot trends, predict outcomes, creates summaries, timely recommendations, and take action from any device; and integration service including MuleSoft, which provides building blocks to deliver end-to-end and connected experiences. Additionally, the company provides data cloud, a hyperscale data engine native to Salesforce; vertical services to meet the needs of customers in industries, such as financial services, healthcare and life sciences, manufacturing and automotive and government; and offers salesforce starter for small and medium-sized businesses. Salesforce, Inc. was incorporated in 1999 and is headquartered in San Francisco, California.

About Elcom International

Elcom International Inc. provides cloud based e-procurement solutions worldwide. It offers Procure to Pay solutions to publish and manage supplier content, connect to buyers, and analyze spend and procurement processes; eInvoicing solutions to send and receive eInvoices with supplier adoption guaranteed; and sourcing functions to investigate potential suppliers on a local and global basis. The company also provides services for buyers, including catalog processing, development of punchout catalogs, and to integrate Elcom’s PECOS solution into existing purchasing processes; and services for suppliers, such as onboarding of new suppliers to utilize the solution, access to demand generating activities, and to access information and bids that relate to products and services. It offers eProcurement solutions for governments, educational institutions, healthcare organizations, private enterprises, buying groups. Elcom International Inc. was founded in 1992 and is based in Braintree, Massachusetts.