In the dynamic software application industry, Salesforce, Inc. (CRM) and Domo, Inc. (DOMO) stand out as innovators in customer relationship management and business intelligence platforms. Both companies focus on leveraging data to enhance organizational efficiency and customer engagement, yet they differ significantly in scale and market approach. This article will analyze their strengths and challenges to help you decide which company offers the most compelling investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between Salesforce, Inc. and Domo, Inc. by providing an overview of these two companies and their main differences.
Salesforce Overview
Salesforce, Inc. is a leading provider of customer relationship management (CRM) technology aimed at connecting companies with their customers worldwide. Its Customer 360 platform integrates sales, service, marketing, commerce, analytics, and integration tools to deliver personalized customer experiences. Headquartered in San Francisco, Salesforce serves various industries with a broad suite of cloud-based solutions and employs over 76K people.
Domo Overview
Domo, Inc. offers a cloud-based business intelligence platform designed to connect all levels of an organization to real-time data and insights. Primarily focused on enabling business management from smartphones, Domo targets companies seeking agile data-driven decision-making. Founded in 2010 and based in American Fork, Utah, Domo operates internationally with a workforce of around 900 employees.
Key similarities and differences
Both Salesforce and Domo operate in the software application industry, providing cloud-based platforms that emphasize data integration and user accessibility. Salesforce offers a comprehensive CRM ecosystem covering multiple business functions, whereas Domo specializes in business intelligence with a mobile-first approach. Salesforce’s larger scale and diversified offerings contrast with Domo’s more focused, smaller market presence.
Income Statement Comparison
This table presents the key income statement metrics for Salesforce, Inc. and Domo, Inc. for the fiscal year 2025, providing a side-by-side financial overview.
| Metric | Salesforce, Inc. (CRM) | Domo, Inc. (DOMO) |
|---|---|---|
| Market Cap | 219.5B | 262M |
| Revenue | 37.9B | 317M |
| EBITDA | 11.1B | -50M |
| EBIT | 7.7B | -59M |
| Net Income | 6.2B | -82M |
| EPS | 6.44 | -2.13 |
| Fiscal Year | 2025 | 2025 |
Income Statement Interpretations
Salesforce, Inc.
Salesforce showed strong revenue growth from $21.3B in 2021 to $37.9B in 2025, with net income rising from $4.07B to $6.2B. Gross and EBIT margins remained favorable, though net margin declined slightly over the period. The latest year saw revenue grow 8.7% and net margin improve significantly, reflecting operational efficiency gains.
Domo, Inc.
Domo’s revenue increased moderately from $210M in 2021 to $317M in 2025 but declined slightly last year by 0.6%. Net income remained negative throughout, widening to a loss of $82M in 2025. Gross margin stayed favorable at 74.5%, but EBIT and net margins were negative, indicating ongoing profitability challenges with deteriorating year-over-year earnings.
Which one has the stronger fundamentals?
Salesforce’s financials predominantly show favorable growth, margin expansion, and solid profitability, with 92.9% of income statement metrics rated positive. In contrast, Domo faces persistent losses and unfavorable margin performance, with only 35.7% favorable metrics. Salesforce’s consistent profitability and margin strength suggest comparatively stronger fundamentals.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Salesforce, Inc. (CRM) and Domo, Inc. (DOMO) based on their most recent fiscal year data (2025).
| Ratios | Salesforce, Inc. (CRM) | Domo, Inc. (DOMO) |
|---|---|---|
| ROE | 10.1% | 46.2% |
| ROIC | 7.9% | 194.7% |
| P/E | 53.0 | -3.98 |
| P/B | 5.37 | -1.84 |
| Current Ratio | 1.06 | 0.56 |
| Quick Ratio | 1.06 | 0.56 |
| D/E | 0.19 | -0.76 |
| Debt-to-Assets | 11.1% | 63.2% |
| Interest Coverage | 26.5 | -3.0 |
| Asset Turnover | 0.37 | 1.48 |
| Fixed Asset Turnover | 7.03 | 8.17 |
| Payout Ratio | 24.8% | 0% |
| Dividend Yield | 0.47% | 0% |
Interpretation of the Ratios
Salesforce, Inc.
Salesforce shows a slightly favorable ratio profile with strengths in net margin (16.35%), interest coverage (28.18), and low debt levels, though its high PE (53.04) and PB (5.37) ratios are unfavorable. The current and quick ratios are around 1.06, indicating moderate liquidity. Salesforce pays dividends with a low yield (0.47%), suggesting cautious shareholder returns supported by stable free cash flow.
Domo, Inc.
Domo presents a mixed ratio picture with favorable return on equity (46.23%) and invested capital (194.73%), but suffers from a negative net margin (-25.84%) and weak liquidity (current ratio 0.56). Its negative debt to equity is unusual, reflecting net cash positions, while debt to assets is high (63.23%). Domo does not pay dividends, likely focusing on reinvestment and growth given its negative free cash flow.
Which one has the best ratios?
Salesforce’s ratios skew slightly favorable with solid profitability and financial stability, despite some valuation concerns. Domo’s ratios are more polarized, balancing strong returns on capital with liquidity and profitability weaknesses. Overall, Salesforce’s profile appears more balanced, while Domo reflects higher risk and growth focus.
Strategic Positioning
This section compares the strategic positioning of Salesforce, Inc. and Domo, Inc., including Market position, Key segments, and disruption:
Salesforce, Inc.
- Leading global CRM provider with strong NYSE presence and 76K employees; faces competitive pressure in software applications.
- Diverse revenue streams including Sales Cloud (8.3B), Service Cloud (9.1B), Marketing and Commerce Cloud (5.3B), and analytics platforms.
- Exposure includes evolving cloud CRM platforms and analytics integration; innovation in customer engagement and analytics tools.
Domo, Inc.
- Smaller player with NASDAQ listing, 888 employees; operates in cloud-based BI with higher beta indicating volatility.
- Revenue primarily from Subscription (286M) and Professional Services (31M); focused on real-time data insights platform.
- Focused on cloud BI platform disrupting traditional data management with mobile-first real-time access.
Salesforce vs Domo Positioning
Salesforce has a diversified product portfolio across multiple cloud services and industries, providing broad revenue drivers but facing intense competition. Domo concentrates on cloud BI with a smaller scale, offering focused innovation but limited diversification and market presence.
Which has the best competitive advantage?
Domo demonstrates a very favorable moat with growing ROIC well above WACC, indicating durable competitive advantage and increasing profitability. Salesforce shows a slightly unfavorable moat, shedding value despite growing ROIC, suggesting weaker competitive advantage.
Stock Comparison
The stock price dynamics over the past year reveal significant bearish trends for both Salesforce, Inc. (CRM) and Domo, Inc. (DOMO), with CRM showing accelerating declines and DOMO experiencing decelerating losses despite increased trading volumes.
Trend Analysis
Salesforce, Inc. (CRM) exhibited a bearish trend over the past 12 months with a price decline of 21.91%, showing acceleration in downward momentum, a high volatility level (std deviation 31.8), and a trading range between 227.11 and 361.99.
Domo, Inc. (DOMO) also experienced a bearish trend with a sharper price drop of 43.6% over the past year, though its decline decelerated recently; volatility remained low (std deviation 3.01) with prices fluctuating between 6.25 and 18.06.
Comparing both stocks, Salesforce delivered the higher market performance despite its negative trend, whereas Domo suffered a more pronounced price decline and weaker buyer dominance in recent trading periods.
Target Prices
The current analyst consensus for target prices provides a clear outlook on these technology companies.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Salesforce, Inc. | 400 | 250 | 324.17 |
| Domo, Inc. | 13 | 10 | 11.5 |
Analysts expect Salesforce’s stock to appreciate significantly from its current price of 229.63, indicating strong growth potential. Domo’s consensus target is also nearly double its current price of 6.26, suggesting notable upside but with higher volatility risk.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Salesforce, Inc. and Domo, Inc.:
Rating Comparison
Salesforce, Inc. Rating
- Rating: B+ indicating a very favorable overall status
- Discounted Cash Flow Score: 4, favorable valuation
- ROE Score: 4, favorable efficiency in generating profit
- ROA Score: 4, favorable asset utilization
- Debt To Equity Score: 3, moderate financial risk
- Overall Score: 3, moderate overall financial standing
Domo, Inc. Rating
- Rating: C indicating a very favorable overall status
- Discounted Cash Flow Score: 1, very unfavorable valuation
- ROE Score: 5, very favorable efficiency in generating profit
- ROA Score: 1, very unfavorable asset utilization
- Debt To Equity Score: 1, very unfavorable financial risk
- Overall Score: 2, moderate overall financial standing
Which one is the best rated?
Salesforce holds a higher rating (B+) with mostly favorable scores, except moderate debt management, while Domo’s rating (C) shows a mix of very favorable ROE but very unfavorable scores in cash flow, asset use, and debt, resulting in a lower overall standing.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for Salesforce and Domo:
Salesforce Scores
- Altman Z-Score: 5.26, indicating a safe financial zone with low bankruptcy risk.
- Piotroski Score: 7, classified as strong financial health.
Domo Scores
- Altman Z-Score: -10.10, indicating distress and high bankruptcy risk.
- Piotroski Score: 3, classified as very weak financial health.
Which company has the best scores?
Salesforce clearly outperforms Domo in both the Altman Z-Score and Piotroski Score, indicating stronger financial stability and health compared to Domo based on the data provided.
Grades Comparison
Here is a summary of the recent grades assigned to Salesforce, Inc. and Domo, Inc.:
Salesforce, Inc. Grades
The following table lists recent grades from reputable grading companies for Salesforce, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | maintain | Overweight | 2026-01-12 |
| RBC Capital | maintain | Sector Perform | 2026-01-05 |
| Morgan Stanley | maintain | Overweight | 2025-12-09 |
| Citigroup | maintain | Neutral | 2025-12-08 |
| DA Davidson | maintain | Neutral | 2025-12-05 |
| Citizens | maintain | Market Outperform | 2025-12-04 |
| Deutsche Bank | maintain | Buy | 2025-12-04 |
| Wedbush | maintain | Outperform | 2025-12-04 |
| Northland Capital Markets | maintain | Market Perform | 2025-12-04 |
| Canaccord Genuity | maintain | Buy | 2025-12-04 |
Salesforce’s grades mostly indicate a positive outlook with a strong presence of “Buy,” “Overweight,” and “Outperform” ratings, showing general confidence from analysts.
Domo, Inc. Grades
The following table presents recent grades from recognized grading companies for Domo, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| DA Davidson | maintain | Neutral | 2025-12-05 |
| TD Cowen | maintain | Buy | 2025-12-05 |
| Lake Street | maintain | Hold | 2025-12-05 |
| DA Davidson | maintain | Neutral | 2025-12-01 |
| JMP Securities | maintain | Market Outperform | 2025-09-10 |
| DA Davidson | maintain | Neutral | 2025-08-28 |
| Cantor Fitzgerald | maintain | Overweight | 2025-08-28 |
| TD Cowen | upgrade | Buy | 2025-08-26 |
| JMP Securities | maintain | Market Outperform | 2025-06-25 |
| Cantor Fitzgerald | maintain | Overweight | 2025-06-25 |
Domo’s grades show a mixture of “Neutral,” “Buy,” and “Market Outperform” ratings, with some recent upgrades but also several neutral assessments.
Which company has the best grades?
Salesforce, Inc. has received more consistently positive and higher-tier grades, such as multiple “Buy,” “Overweight,” and “Outperform” ratings, compared to Domo, Inc., whose grades are more mixed with several “Neutral” ratings. This suggests that analysts generally have a stronger conviction in Salesforce’s prospects, which may influence investor sentiment and portfolio decisions.
Strengths and Weaknesses
Below is a comparative overview of the key strengths and weaknesses of Salesforce, Inc. (CRM) and Domo, Inc. (DOMO) based on recent financial and strategic data.
| Criterion | Salesforce, Inc. (CRM) | Domo, Inc. (DOMO) |
|---|---|---|
| Diversification | Highly diversified product portfolio across multiple clouds and services, with 2025 revenues spanning Sales Cloud (8.3B), Service Cloud (9.1B), and others | Less diversified, primarily subscription-based (286M in 2025) with smaller professional services segment |
| Profitability | Moderate profitability: net margin 16.35%, ROIC 7.95%, but ROIC below WACC indicating slight value destruction | High ROIC (194.7%) well above WACC, indicating strong value creation despite negative net margin (-25.8%) |
| Innovation | Strong innovation capacity with growing ROIC trend and broad cloud platform offerings | Demonstrates durable competitive advantage with very favorable moat status and growing ROIC |
| Global presence | Large global footprint with extensive client base and multiple large revenue streams globally | More limited global presence, smaller scale operations |
| Market Share | Leading market share in cloud CRM and enterprise software sectors | Smaller market share, niche positioning in BI and analytics |
Key takeaways: Salesforce offers broad diversification and steady profitability but faces challenges in value creation efficiency. Domo impresses with strong return on capital and innovation potential yet struggles with profitability and scale. Investors should weigh diversification and stability against growth and moat strength cautiously.
Risk Analysis
Below is a comparison of key risks for Salesforce, Inc. (CRM) and Domo, Inc. (DOMO) as of 2025:
| Metric | Salesforce, Inc. (CRM) | Domo, Inc. (DOMO) |
|---|---|---|
| Market Risk | Beta 1.27, moderate volatility | Beta 1.65, higher volatility |
| Debt level | Low debt-to-equity 0.19, favorable | High debt-to-assets 63.23%, unfavorable |
| Regulatory Risk | Moderate, operating globally with compliance focus | Moderate, smaller scale but exposed to data regulations |
| Operational Risk | Large scale, complex integration risk | Smaller scale, scalability and execution risks |
| Environmental Risk | Moderate, industry pressure on sustainability | Moderate, less publicized initiatives |
| Geopolitical Risk | Moderate, global presence with diversified markets | Moderate, reliance on US and Japan markets |
Salesforce’s biggest risks are market volatility and operational complexity, but its strong balance sheet and safety scores reduce financial distress risks. Domo faces higher market volatility and significant financial distress risk with a low Altman Z-Score and weak liquidity, making it a higher-risk investment.
Which Stock to Choose?
Salesforce, Inc. (CRM) shows steady income growth with favorable margins and profitability, supported by low debt levels and a strong rating of B+. Its financial ratios are slightly favorable overall, reflecting solid operational efficiency despite some valuation concerns.
Domo, Inc. (DOMO) presents mixed financials with an unfavorable income statement and high debt burden but favorable returns on equity and capital employed. Its rating of C reflects moderate overall scores, balanced by significant risks and financial instability.
Investors focused on stability and consistent profitability might find Salesforce’s profile more aligned with their goals, while those with a higher risk tolerance seeking potential value creation amid volatility could consider Domo’s evolving competitive advantage as a factor.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Salesforce, Inc. and Domo, Inc. to enhance your investment decisions:
