Should You Buy Salesforce Stock Instead of Oracle Stock? | CRM Stock Analysis | ORCL Stock Analysis

Parkev Tatevosian, CFA•Jul 8, 2026

Summary

Parkev Tatevosian, CFA provides a head-to-head comparison of Oracle and Salesforce, two tech giants that have seen their share prices decline by 28% and 37% respectively in 2026. Parkev Tatevosian, CFA notes that while both companies are facing market skepticism, their underlying fundamentals and valuations suggest they are currently oversold. The analysis focuses on revenue trends, profit margins, capital expenditures, and valuation models to determine which stock offers a better risk-reward profile.

Parkev Tatevosian, CFA highlights a stark contrast in business models: Oracle is currently in a heavy investment phase, spending 82.6% of its revenue on capital expenditures to build data centers for AI clients like OpenAI. Conversely, Salesforce maintains an asset-light software model with capital expenditures at just 1.3% of revenue. Parkev Tatevosian, CFA expresses concern regarding Oracle's customer concentration risk but remains optimistic about both companies' long-term ability to integrate AI. Ultimately, Parkev Tatevosian, CFA concludes that Salesforce is the better buy today due to its historically low valuation.

Oracle (ORCL): Parkev Tatevosian, CFA points out that Oracle is experiencing accelerating revenue growth, reaching $67.4 billion in the trailing 12-month period. Parkev Tatevosian, CFA observes that the company has a strong operating profit margin of 33.3%, though it is taking on significant risk by spending heavily on infrastructure for OpenAI. Parkev Tatevosian, CFA calculates a fair value of $219 for Oracle, which is significantly higher than its current market price of $140.

Salesforce (CRM): Parkev Tatevosian, CFA notes that while Salesforce's revenue growth is decelerating, its profitability has improved vastly since 2022, reaching a 22% operating margin. Parkev Tatevosian, CFA argues that the stock is trading at its cheapest forward PE ratio ever at 11.8, making it a highly attractive entry point. Parkev Tatevosian, CFA estimates a fair value of over $290 per share for Salesforce, representing substantial upside from the current price of $167.

Mentioned Stocks

CRM

Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev Tatevosian, CFA identifies Salesforce as his preferred pick between the two stocks due to its asset-light business model and record-low valuation. Parkev Tatevosian, CFA highlights that the stock is trading at its cheapest forward PE ratio ever (11.8) and has a calculated fair value of over $290 per share, compared to a market price of $167. Parkev Tatevosian, CFA believes the risk of AI disintermediation is low and that AI agents will actually enhance Salesforce's utility.

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ORCL

Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev Tatevosian, CFA views Oracle as a buying opportunity because it is demonstrating accelerating revenue growth and maintains a high operating margin of 33.3%. Parkev Tatevosian, CFA notes that while the CAPEX to revenue ratio is high at 82.6%, the company is successfully building infrastructure for major AI players. Parkev Tatevosian, CFA calculates a fair value of $219 per share, suggesting the stock is undervalued at its current price of $140.

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