Lennar vs. Salesforce: With Return Forecast Of 31%, Salesforce Is A Better Bet

Last Updated: 3/16/2025

We Forecast Higher Stock Return For Salesforce vs. Lennar

Lennar is trading at a cheaper P/S valuation vs. Salesforce but it makes sense to pay more for Salesforce for a higher return

LEN and CRM have similar revenue

3-Year Return Depends On [1] Revenue Growth [2] P/S

[1] How Much Can Revenue Grow In Next 3 Years

We forecast annual revenue growth of 3.3% for LEN and 10.1% for CRM

Lennar Revenue vs. Salesforce Revenue

[2] Which P/S Scenarios Make Sense

We forecast P/S of 0.9 for LEN and 7.1 for CRM based on below plausible scenarios

Lennar P/S vs. Salesforce P/S

Are Current P/S Ratios Justified

A higher P/S is justified by higher margin, higher revenue growth, better margin expansion, and lower risk

P/S Ratio

Revenue Growth & Operating Margin

Financial & Market Risk

Note On P/S Justification

Past Market Return Comparison vs. Benchmarks

Since 2020, Lennar and Salesforce returned 138% and 75% respectively vs. 79% for S&P 500 and 254% for Trefis Reinforced Value Portfolio

 

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