nCino (NASDAQ:NCNO) and Salesforce (NYSE:CRM) Head-To-Head Review

nCino (NASDAQ:NCNOGet Rating) and Salesforce (NYSE:CRMGet Rating) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.

Volatility and Risk

nCino has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Salesforce has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
nCino -21.30% -13.52% -9.46%
Salesforce 3.59% 3.92% 2.47%

Valuation & Earnings

This table compares nCino and Salesforce’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
nCino $273.86 million 14.31 -$49.45 million ($0.63) -56.44
Salesforce $26.49 billion 7.14 $1.44 billion $1.03 184.63

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

Analyst Recommendations

This is a summary of current ratings for nCino and Salesforce, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
nCino 0 2 6 0 2.75
Salesforce 0 3 34 1 2.95

nCino currently has a consensus target price of $50.44, suggesting a potential upside of 41.86%. Salesforce has a consensus target price of $270.53, suggesting a potential upside of 42.25%. Given Salesforce’s stronger consensus rating and higher possible upside, analysts clearly believe Salesforce is more favorable than nCino.

Institutional and Insider Ownership

77.8% of Salesforce shares are held by institutional investors. 37.2% of nCino shares are held by insiders. Comparatively, 3.6% of Salesforce shares are held 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.

Summary

Salesforce beats nCino on 13 of the 15 factors compared between the two stocks.

About nCino

(Get Rating)

nCino, Inc., a software-as-a-service company, provides cloud-based software applications to financial institutions in the United States and internationally. Its nCino Bank Operating System, a tenant cloud platform, which digitizes, automates, and streamlines complex processes and workflow; and utilizes data analytics and artificial intelligence and machine learning (AI/ML) to enable banks and credit unions to onboard new clients, make loans and manage the entire loan life cycle, open deposit and other accounts, and manage regulatory compliance. The company's nCino IQ, an application suite that utilizes data analytics and AI/ML to provide its customers with automation and insights into their operations, such as tools for analyzing, measuring, and managing credit risk, as well as to enhance their ability to comply with regulatory requirements. It also offers SimpleNexus, a suite of products that enables loan officers, borrowers, real estate agents, settlement agents, and others to engage in the homeownership process from internet-enabled device. The company serves financial institution customers, including global financial institutions, enterprise banks, regional banks, community banks, credit unions, new market entrants, and independent mortgage banks through sales team comprising business development representatives, account executives, field sales engineers, and customer success managers. nCino, Inc. was founded in 2011 and is headquartered in Wilmington, North Carolina.

About Salesforce

(Get Rating)

Salesforce, Inc. provides customer relationship management technology that brings companies and customers together worldwide. Its Customer 360 platform empowers its customers to work together to deliver connected experiences for their customers. The company's service offerings include Sales to store data, monitor leads and progress, forecast opportunities, gain insights through analytics and relationship intelligence, and deliver quotes, contracts, and invoices; and Service that enables companies to deliver trusted and highly personalized customer service and support at scale. Its service offerings also comprise flexible platform that enables companies of various sizes, locations, and industries to build business apps to bring them closer to their customers with drag-and-drop tools; online learning platform that allows anyone to learn in-demand Salesforce skills; and Slack, a system of engagement. In addition, the company's service offerings include Marketing offering that enables companies to plan, personalize, and optimize one-to-one customer marketing journeys; and Commerce offering, which empowers brands to unify the customer experience across mobile, web, social, and store commerce points. Further, its service offerings comprise Tableau, an end-to-end analytics solution serving various enterprise use cases; and MuleSoft, an integration offering that allows its customers to unlock data across their enterprise. The company provides its service offering for customers in financial services, healthcare and life sciences, manufacturing, and other industries. It also offers professional services; and in-person and online courses to certify its customers and partners on architecting, administering, deploying, and developing its service offerings. The company provides its services through direct sales; and consulting firms, systems integrators, and other partners. Salesforce, Inc. was incorporated in 1999 and is headquartered in San Francisco, California.

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