Financial Comparison: ReposiTrak (NYSE:TRAK) and Salesforce (NYSE:CRM)

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Salesforce	3	13	31	3	2.68
ReposiTrak	0	1	0	0	2.00

Salesforce presently has a consensus target price of $278.12, indicating a potential upside of 16.79%. Given Salesforce’s stronger consensus rating and higher possible upside, equities analysts plainly believe Salesforce is more favorable than ReposiTrak.

Valuation and Earnings

This table compares Salesforce and ReposiTrak”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Salesforce	$41.52 billion	4.72	$7.46 billion	$10.97	21.71
ReposiTrak	$23.29 million	5.97	$7.57 million	$0.39	19.59

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Salesforce	21.99%	24.90%	11.27%
ReposiTrak	32.51%	14.94%	13.16%

Institutional & Insider Ownership

80.4% of Salesforce shares are owned by institutional investors. Comparatively, 27.4% of ReposiTrak shares are owned by institutional investors. 3.5% of Salesforce shares are owned by company insiders. Comparatively, 37.0% of ReposiTrak shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Salesforce pays an annual dividend of $1.76 per share and has a dividend yield of 0.7%. ReposiTrak pays an annual dividend of $0.08 per share and has a dividend yield of 1.0%. Salesforce pays out 16.0% of its earnings in the form of a dividend. ReposiTrak pays out 20.5% 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 raised its dividend for 1 consecutive years and ReposiTrak has raised its dividend for 2 consecutive years. ReposiTrak is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Salesforce has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, ReposiTrak has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.

Summary

Salesforce beats ReposiTrak on 12 of the 18 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 ReposiTrak

Park City Group, Inc., a software-as-a-service provider, designs, develops, and markets proprietary software products in North America. The company offers ReposiTrak MarketPlace, a supplier discovery and B2B e-commerce solution; ReposiTrak Compliance and Food Safety solutions, which reduces potential regulatory and legal risk from their supply chain partners; and ReposiTrak Supply Chain solutions that enables customers to manage relationships with suppliers. It also provides ScoreTracker, Vendor Managed Inventory, Store Level Ordering and Replenishment, Enterprise Supply Chain Planning, Fresh Market Manager, and ActionManager supply chain solutions to manage inventory, product mix, and labor. In addition, the company offers business-consulting services to suppliers and retailers in the grocery, convenience store, and specialty retail industries, as well as professional consulting services. It primarily serves multi-store retail chains, wholesalers and distributors, and their suppliers. The company is headquartered in Murray, Utah.