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
[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
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
FAQ
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