Salesforce (NYSE:CRM) and Dassault Systemes (OTCMKTS:DASTY) Financial Analysis

Dassault Systemes (OTCMKTS:DASTY) and Salesforce (NYSE:CRM) are both large-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Institutional and Insider Ownership

0.0% of Dassault Systemes shares are owned by institutional investors. Comparatively, 80.4% of Salesforce shares are owned by institutional investors. 3.0% of Salesforce shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Dassault Systemes has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Salesforce has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Dividends

Dassault Systemes pays an annual dividend of $0.22 per share and has a dividend yield of 0.8%. Salesforce pays an annual dividend of $1.66 per share and has a dividend yield of 0.6%. Dassault Systemes pays out 23.2% of its earnings in the form of a dividend. Salesforce pays out 22.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Salesforce has increased its dividend for 1 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Dassault Systemes and Salesforce, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dassault Systemes	0	1	0	2	3.33
Salesforce	1	13	29	1	2.68

Salesforce has a consensus price target of $326.68, suggesting a potential upside of 22.84%. Given Salesforce’s higher probable upside, analysts plainly believe Salesforce is more favorable than Dassault Systemes.

Profitability

This table compares Dassault Systemes and Salesforce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dassault Systemes	18.52%	17.18%	9.98%
Salesforce	17.91%	14.41%	8.89%

Valuation and Earnings

This table compares Dassault Systemes and Salesforce”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dassault Systemes	$6.72 billion	5.58	$1.30 billion	$0.95	29.45
Salesforce	$37.90 billion	6.58	$6.20 billion	$7.49	35.51

Salesforce has higher revenue and earnings than Dassault Systemes. Dassault Systemes is trading at a lower price-to-earnings ratio than Salesforce, indicating that it is currently the more affordable of the two stocks.

Summary

Salesforce beats Dassault Systemes on 12 of the 18 factors compared between the two stocks.

About Dassault Systemes

Dassault Systèmes SE provides software solutions and services worldwide. It offers SOLIDWORKS provides easy-to-use 2D and 3D product development solutions accessible to any business; CATIA, an engineering and design software for product 3D computer-aided design; GEOVIA for intersection of natural resources, infrastructure, and urban planning; and BIOVIA that develops chemicals, biologics, and materials experiences. The company provides SIMULIA that delivers realistic simulation applications; DELMIA, which enables global industrial operations; 3DVIA that provides 3D space planning solutions; and ENOVIA that enables to plan and track the definition of success for customer. In addition, it offers Centric PLM, a product lifecycle management software solution; 3DEXCITE, a real-time 3D visualization software; NETVIBES, which enables organizations to gather, align, and enrich big data; 3DEXPERIENCE platform that provides organizations a holistic and real-time view of their business activities and ecosystem, as well as connecting people, ideas, data, and solutions together in a single environment; and MEDIDATA, a clinical research study software that provides evidences and insights to pharmaceutical, biotech, medical device, and diagnostic companies, as well as academic researchers. The company distributes its products through direct and indirect sales channels. It primarily serves companies in the transportation and mobility; industrial equipment; aerospace and defense; high-tech; life sciences and healthcare; infrastructure, energy, and materials; home and lifestyle; architecture, engineering, and construction; cities, and public services; consumer packaged goods and retail; marine and offshore; and business services. Dassault Systèmes SE was incorporated in 1981 and is headquartered in Vélizy-Villacoublay, France.

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.