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Salesforce, Inc. (CRM) vs Microchip Technology Incorporated (MCHP): Which Is the Better Buy in 2026?

As of 2026-06-19, CRM is undervalued at $152, with a DCF intrinsic value of $274 and a margin of safety of 45%. MCHP is undervalued at $100, with an intrinsic value of $220 and a margin of safety of 55%. Of the two, MCHP has the wider margin of safety.

CRM
Salesforce, Inc.
$151.78
VS
MCHP
Microchip Technology Incorporated
$99.77

Rewards

CRM
  • ★Gross margin of 77.6% 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.
MCHP
  • ★Management has timed buybacks well — 2 out of 3 years showed value-accretive repurchases.
  • ★PEG ratio of 0.35 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
  • ★Altman Z-Score of 5.12 indicates very low bankruptcy risk — the company is firmly in the safe zone.

Risks

CRM
    MCHP
    • ⚠ROIC has declined by 14.7 percentage points over the past 4 years, which may signal competitive erosion.
    • ⚠Microchip Technology Incorporated scores only 28/100 on the Economic Moat Score, suggesting limited durable competitive advantages.
    • ⚠FCF yield of 2.1% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.

    Key Valuation Metrics

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    CRM
    MCHP
    Valuation
    $16.55B
    Free Cash Flow
    $1.14B
    13.32%
    FCF Yield
    2.11%
    17.57
    Trailing P/E
    453.50
    9.77
    Forward P/E
    24.33
    Quality & Moat
    9.61%
    ROIC
    5.26%
    16.91%
    ROE
    3.40%
    77.64%
    Gross Margin
    57.73%
    0.77
    PEG Ratio
    0.35
    Balance Sheet Safety
    0.90
    Net Debt / Equity
    0.84
    N/A
    Interest Coverage
    N/A
    2.38
    Net Debt / EBITDA
    4.43
    1.09%
    Dividend Yield
    1.90%
    CRM: 8Ties: 1MCHP: 3
    CRMMCHP

    Historical Fundamentals

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    CRM

    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.

    MCHP

    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

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    CRM
    $-7.99
    created per $1 retained over 3 years
    Market Cap Declined
    Σ Retained
    $14.67B
    Δ Market Cap
    $-117.14B
    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
    MCHP
    N/A
    Net losses over 3 years — test not applicable
    Company had negative cumulative retained earnings
    Σ Retained
    $-843.3M
    Δ Market Cap
    +$4.89B
    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

    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

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    CRM
    44.5% Margin of Safety
    Price is 44.5% below estimated fair value
    Current Price: $151.78
    Fair Value: $273.71
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued
    MCHP
    4.4% Margin of Safety
    Price is 4.4% below estimated fair value
    Current Price: $99.77
    Fair Value: $104.40
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued

    Reverse DCF — Market-Implied Growth

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    CRM

    What growth rate is the market pricing in at $152?

    +3.6%
    Market-Implied Owner Earnings Growth
    Standard FCF implies -2.8%

    The market implies +3.6% Owner Earnings growth, below historical trends — potential opportunity.

    Standard FCF implies a more demanding -2.8%, reflecting heavy growth investment expected to generate future returns.

    MCHP

    What growth rate is the market pricing in at $100?

    +25.2%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +20.8%

    The market implies +25.2% Owner Earnings growth, above historical trends.

    Standard FCF implies a demanding +20.8%, reflecting heavy growth investment.

    Economic Moat Score

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    CRM
    58/100
    Narrow Moat
    70+ Wide · 40-69 Narrow · <40 None

    Narrow moat with revenue predictability as the key competitive advantage. Improving roic consistency would strengthen the moat.

    Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
    MCHP
    28/100
    No Moat
    70+ Wide · 40-69 Narrow · <40 None

    No durable moat detected, though reinvestment efficiency shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.

    Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

    Forensic Accounting

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    CRM
    -2.73
    Unlikely Manipulator
    Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

    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.
    MCHP
    -2.85
    Unlikely Manipulator
    Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone
    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.

    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

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    CRM
    Insiders 3.0%Institutions 94.3%Retail & Other 2.8%
    No. of Institutional Holders3,722
    High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
    MCHP
    Insiders 2.1%Institutions 100.6%
    No. of Institutional Holders1,615
    High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

    High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

    Insider Buying Activity

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    CRM
    0
    Buys (3M)
    5
    Buys (12M)
    Total value (12M): $27.38M
    ALBER LAURA
    Director
    $500,266
    @ $194.58 · 2026-03-19
    KIRK DAVID BLAIR
    Director
    $500,178
    @ $194.62 · 2026-03-18
    KIRK DAVID BLAIR
    Director
    $500,722
    @ $258.64 · 2025-12-17
    MORFIT G MASON
    Director and Beneficial Owner of more than 10% of a Class of Security
    $25.02M
    @ $260.58 · 2025-12-05
    KIRK DAVID BLAIR
    Director
    $865,827
    @ $254.66 · 2025-09-09
    Open market purchases · includes direct & indirect ownership · excludes option exercises
    MCHP
    0
    Buys (3M)
    0
    Buys (12M)
    No open market insider purchases found.
    Open market purchases · includes direct & indirect ownership · excludes option exercises

    Open market purchases · includes direct & indirect ownership · excludes option exercises.

    Insider Selling Activity

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    CRM
    0
    Sells (3M)
    15
    Sells (12M)
    Total value (12M): $40.30M
    KROES NEELIE
    Director
    $929,276
    @ $238.70 · 2026-01-14
    HARRIS G PARKER
    Officer and Director
    $31.61M
    @ $234.70 · 2025-12-02
    BENIOFF MARC RUSSELL
    Chief Executive Officer
    $575,140
    @ $255.62 · 2025-10-23
    BENIOFF MARC RUSSELL
    Chief Executive Officer
    $590,102
    @ $262.27 · 2025-10-21
    BENIOFF MARC RUSSELL
    Chief Executive Officer
    $567,631
    @ $252.28 · 2025-10-20
    BENIOFF MARC RUSSELL
    Chief Executive Officer
    $550,430
    @ $244.64 · 2025-10-17
    BENIOFF MARC RUSSELL
    Chief Executive Officer
    $558,810
    @ $248.36 · 2025-10-16
    BENIOFF MARC RUSSELL
    Chief Executive Officer
    $536,322
    @ $238.37 · 2025-10-15
    BENIOFF MARC RUSSELL
    Chief Executive Officer
    $548,796
    @ $243.91 · 2025-10-14
    BENIOFF MARC RUSSELL
    Chief Executive Officer
    $1.10M
    @ $244.75 · 2025-10-13
    BENIOFF MARC RUSSELL
    Chief Executive Officer
    $547,344
    @ $243.26 · 2025-10-09
    BENIOFF MARC RUSSELL
    Chief Executive Officer
    $539,533
    @ $239.79 · 2025-10-08
    BENIOFF MARC RUSSELL
    Chief Executive Officer
    $555,001
    @ $246.67 · 2025-09-23
    BENIOFF MARC RUSSELL
    Chief Executive Officer
    $552,798
    @ $245.69 · 2025-09-19
    BENIOFF MARC RUSSELL
    Chief Executive Officer
    $545,384
    @ $242.39 · 2025-09-15
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
    MCHP
    3
    Sells (3M)
    6
    Sells (12M)
    Total value (12M): $4.08M
    CHAPMAN MATTHEW W
    Director
    $292,546
    @ $97.52 · 2026-05-28
    CHAPMAN MATTHEW W
    Director
    $954,799
    @ $95.48 · 2026-05-15
    BUNKER MATHEW B.
    Officer
    $1.02M
    @ $96.88 · 2026-05-13
    KRAWCZYK JOSEPH R. II
    Officer
    $345,743
    @ $78.58 · 2026-02-12
    BUNKER MATHEW B.
    Officer
    $783,700
    @ $78.37 · 2026-02-12
    CHAPMAN MATTHEW W
    Director
    $682,550
    @ $68.25 · 2025-08-25
    JOHNSON KARLTON D
    Director
    $29,981
    @ $60.69 · 2025-05-20
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

    🎭 Mr. Market's Mood

    Learn more →
    CRM
    FearGreed
    🥶Extreme Fear(18/100)

    "Mr. Market is panicking — potential buying opportunity if fundamentals are strong"

    Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
    MCHP
    FearGreed
    😐Neutral(56/100)

    "Market is pricing this stock without strong emotion in either direction"

    Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

    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 →
    CRM
    ⚪Awaiting DCF Data

    The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

    DCF Margin of Safety: N/AMr. Market's Mood: Extreme Fear (18)
    MCHP
    ⚪Awaiting DCF Data

    The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

    DCF Margin of Safety: N/AMr. Market's Mood: Neutral (56)
    View CRM Full AnalysisView MCHP Full Analysis

    Frequently Asked Questions: CRM vs MCHP

    Is Salesforce, Inc. or Microchip Technology Incorporated more undervalued in 2026?▼

    Based on our discounted cash flow model, MCHP trades at a 54.6% margin of safety (intrinsic value $220 vs. price $100), compared to CRM's 44.5% margin of safety (intrinsic $274 vs. $152).

    Which stock has a wider economic moat, Salesforce, Inc. or Microchip Technology Incorporated?▼

    CRM scores 58/100 (Narrow moat), while MCHP scores 28/100 (None moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

    Is Salesforce, Inc. in financial distress?▼

    CRM's Altman Z-Score of 2.4 places it in the Grey zone, signaling elevated bankruptcy risk. MCHP scores 5.1 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

    Which company has better free cash flow, Salesforce, Inc. or Microchip Technology Incorporated?▼

    Salesforce, Inc. (CRM) generates a 13.3% free cash flow yield, compared to Microchip Technology Incorporated's 2.1%. 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 Microchip Technology Incorporated?▼

    CRM earns 9.6% ROIC versus MCHP's 5.3%. 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 Microchip Technology Incorporated's?▼

    CRM's dividend earns a safety score of 88/100 (Very Safe), compared to MCHP's 24/100 (Unsafe). CRM has raised its dividend for 1 consecutive years.