CRM vs MSFT: Which Is the Better Buy?
Side-by-side comparison of Salesforce, Inc. and Microsoft Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-16.
Salesforce, Inc. · Technology
$181.22
+161.6% upside to fair value
High Conviction
Grade A-
VS
Microsoft Corporation · Technology
$372.20
+32.4% upside to fair value
High Conviction
Grade A
QuantHub Verdict
CRM has more upside to fair value
(+161.6%).
MSFT trades at a lower forward P/E
(22.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CRM |
MSFT |
| Current Price |
$181.22 |
$372.20 |
| Fair Value Estimate |
$474.00 |
$493.00 |
| Upside to Fair Value |
+161.6%
|
+32.4%
|
| Market Cap |
$169.8B |
$2,763.6B |
| Forward P/E |
22.7x
|
22.0x
|
| EV / EBITDA |
—
|
17.5x
|
| Price / Sales |
4.1x
|
9.1x
|
| Price / FCF |
11.8x
|
35.8x
|
| Revenue Growth YoY |
+9.2%
|
+14.9%
|
| Gross Margin |
77.7%
|
68.8%
|
| Operating Margin |
21.5%
|
45.6%
|
| Return on Equity |
12.4%
|
29.6%
|
| Dividend Yield |
— |
0.94% |
| FCF Yield |
8.5%
|
2.8%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Salesforce is the leading global provider of CRM software, offering a strong competitive moat through market dominance and high switching costs, complemented by acquisitions like Slack and Tableau, with excellent margins above 77% gross and robust free cash flow of $15.16 per share. Despite decelerating revenue growth at 9.2% YoY and negative earnings growth of -6.9%, the business remains high-qu…
Microsoft is the world's largest software company, operating a three-pillar empire across cloud (Azure), productivity (Office 365/Teams), and personal computing (Windows/Xbox). Azure is the second-largest cloud platform globally with 24% market share and growing at 38-39% in constant currency, while Microsoft Cloud revenue crossed $168.9B in FY2025. The stock has dropped 33% from its highs to $37…
Accumulation Zones
| Metric |
CRM |
MSFT |
| Zone Low |
$356.00 |
$370.00 |
| Zone High |
$403.00 |
$419.00 |
| In Buy Zone? |
Yes
|
Yes
|