Salesforce, Inc. (CRM) vs Gilead Sciences, Inc. (GILD): Which Is the Better Buy in 2026?
As of 2026-09-17, CRM is overvalued at $243, with a DCF intrinsic value of $158 and a margin of safety of -54%. GILD is undervalued at $148, with an intrinsic value of $639 and a margin of safety of 77%. Of the two, GILD has the wider margin of safety.
Rewards
- ★Gross margin of 77.3% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Free cash flow has grown at a 31.6% CAGR over the past 4 years, demonstrating strong earnings power growth.
- ★Each dollar of retained earnings has created $5.53 of earning power — management is an exceptional capital allocator.
- ★Gilead Sciences, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★Gross margin of 79.6% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Gilead Sciences, Inc. scores 92/100 on the Economic Moat Score (Wide Moat), with margin stability as the strongest competitive dimension.
Risks
- ⚠FCF yield of 5.3% suggests reasonable valuation assuming continued moderate growth.
- ⚠PEG ratio of 2.20 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
- ⚠High leverage (1.82x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
Key Valuation Metrics
Learn more →Historical Fundamentals
Learn more →Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
$1 Retained Earnings Test
Learn more →> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Discounted Cash Flow (DCF) Analysis
Learn more →Reverse DCF — Market-Implied Growth
Learn more →What growth rate is the market pricing in at $243?
The market implies +9.0% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding +1.8%, reflecting heavy growth investment expected to generate future returns.
What growth rate is the market pricing in at $148?
The market implies +7.1% Owner Earnings growth, roughly in line with history — reasonably priced.
Standard FCF implies +8.3%, reflecting ongoing growth investment.
Economic Moat Score
Learn more →Narrow moat with revenue predictability as the key competitive advantage. Improving roic consistency would strengthen the moat.
Wide moat with strength across all dimensions. Margin Stability is the standout factor.
Forensic Accounting
Learn more →M-Score Trend
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Ownership Breakdown
Learn more →High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →"Market is pricing this stock without strong emotion in either direction"
"Market is optimistic — be cautious and ensure you have a margin of safety"
Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
⚖️ Buffett Signal
Learn more →The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
Frequently Asked Questions: CRM vs GILD
Is Salesforce, Inc. or Gilead Sciences, Inc. more undervalued in 2026?▼
Based on our discounted cash flow model, GILD trades at a 76.9% margin of safety (intrinsic value $639 vs. price $148), compared to CRM's -54.2% margin of safety (intrinsic $158 vs. $243).
Which stock has a wider economic moat, Salesforce, Inc. or Gilead Sciences, Inc.?▼
GILD scores 92/100 (Wide moat), while CRM scores 58/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Which company has better free cash flow, Salesforce, Inc. or Gilead Sciences, Inc.?▼
Salesforce, Inc. (CRM) generates a 8.9% free cash flow yield, compared to Gilead Sciences, Inc.'s 5.3%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.
Which stock has higher return on invested capital, Salesforce, Inc. or Gilead Sciences, Inc.?▼
GILD earns 21.3% ROIC versus CRM's 9.2%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.
Which dividend is safer, Salesforce, Inc.'s or Gilead Sciences, Inc.'s?▼
GILD's dividend earns a safety score of 94/100 (Very Safe), compared to CRM's 88/100 (Very Safe). GILD has raised its dividend for 3 consecutive years.