AFRM vs. CRM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AFRM and CRM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | AFRM | CRM |
|---|---|---|
| Company Name | Affirm Holdings, Inc. | Salesforce, Inc. |
| Country | United States | United States |
| GICS Sector | Financials | Information Technology |
| GICS Industry | Financial Services | Software |
| Market Capitalization | 22.71 billion USD | 229.51 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | January 13, 2021 | June 23, 2004 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of AFRM and CRM by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | AFRM | CRM |
|---|---|---|
| 5-Day Price Return | -7.33% | 0.81% |
| 13-Week Price Return | -10.43% | 0.50% |
| 26-Week Price Return | 30.72% | -15.74% |
| 52-Week Price Return | 28.62% | -28.70% |
| Month-to-Date Return | -1.91% | -6.43% |
| Year-to-Date Return | 15.78% | -27.12% |
| 10-Day Avg. Volume | 7.31M | 6.35M |
| 3-Month Avg. Volume | 6.96M | 8.36M |
| 3-Month Volatility | 67.46% | 32.37% |
| Beta | 3.62 | 1.29 |
Profitability
Return on Equity (TTM)
AFRM
7.75%
Financial Services Industry
- Max
- 34.42%
- Q3
- 16.76%
- Median
- 9.18%
- Q1
- 3.90%
- Min
- -10.16%
AFRM’s Return on Equity of 7.75% is on par with the norm for the Financial Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
CRM
11.03%
Software Industry
- Max
- 65.88%
- Q3
- 22.54%
- Median
- 10.46%
- Q1
- -6.54%
- Min
- -41.05%
CRM’s Return on Equity of 11.03% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
AFRM
6.74%
Financial Services Industry
- Max
- 52.16%
- Q3
- 25.33%
- Median
- 13.11%
- Q1
- 7.04%
- Min
- -8.99%
Falling into the lower quartile for the Financial Services industry, AFRM’s Net Profit Margin of 6.74% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
CRM
16.87%
Software Industry
- Max
- 53.50%
- Q3
- 20.30%
- Median
- 9.60%
- Q1
- -4.98%
- Min
- -41.00%
CRM’s Net Profit Margin of 16.87% is aligned with the median group of its peers in the Software industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
AFRM
4.96%
Financial Services Industry
- Max
- 81.07%
- Q3
- 40.32%
- Median
- 19.93%
- Q1
- 10.20%
- Min
- -34.40%
AFRM’s Operating Profit Margin of 4.96% is in the lower quartile for the Financial Services industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
CRM
18.89%
Software Industry
- Max
- 61.99%
- Q3
- 23.67%
- Median
- 10.93%
- Q1
- -3.57%
- Min
- -40.19%
CRM’s Operating Profit Margin of 18.89% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AFRM | CRM |
|---|---|---|
| Return on Equity (TTM) | 7.75% | 11.03% |
| Return on Assets (TTM) | 2.14% | 6.82% |
| Net Profit Margin (TTM) | 6.74% | 16.87% |
| Operating Profit Margin (TTM) | 4.96% | 18.89% |
| Gross Profit Margin (TTM) | 92.50% | 77.65% |
Financial Strength
Current Ratio (MRQ)
AFRM
4.58
Financial Services Industry
- Max
- 4.36
- Q3
- 2.26
- Median
- 1.33
- Q1
- 0.86
- Min
- 0.01
For the Financial Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
CRM
1.12
Software Industry
- Max
- 4.01
- Q3
- 2.27
- Median
- 1.50
- Q1
- 1.03
- Min
- 0.25
CRM’s Current Ratio of 1.12 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
AFRM
2.35
Financial Services Industry
- Max
- 5.07
- Q3
- 2.14
- Median
- 0.55
- Q1
- 0.11
- Min
- 0.00
The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Financial Services industry.
CRM
0.14
Software Industry
- Max
- 2.04
- Q3
- 0.86
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
CRM’s Debt-to-Equity Ratio of 0.14 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
AFRM
-3.76
Financial Services Industry
- Max
- 140.54
- Q3
- 57.67
- Median
- 6.72
- Q1
- 1.93
- Min
- -33.27
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial Services industry.
CRM
19.86
Software Industry
- Max
- 89.65
- Q3
- 33.82
- Median
- 1.59
- Q1
- -10.48
- Min
- -71.23
CRM’s Interest Coverage Ratio of 19.86 is positioned comfortably within the norm for the Software industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AFRM | CRM |
|---|---|---|
| Current Ratio (MRQ) | 4.58 | 1.12 |
| Quick Ratio (MRQ) | 4.49 | 1.01 |
| Debt-to-Equity Ratio (MRQ) | 2.35 | 0.14 |
| Interest Coverage Ratio (TTM) | -3.76 | 19.86 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
AFRM
0.00%
Financial Services Industry
- Max
- 7.52%
- Q3
- 3.60%
- Median
- 1.75%
- Q1
- 0.00%
- Min
- 0.00%
AFRM currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
CRM
0.68%
Software Industry
- Max
- 0.34%
- Q3
- 0.17%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
CRM’s Dividend Yield of 0.68% is exceptionally high, placing it well above the typical range for the Software industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
Dividend Payout Ratio (TTM)
AFRM
0.00%
Financial Services Industry
- Max
- 132.10%
- Q3
- 64.32%
- Median
- 17.51%
- Q1
- 0.00%
- Min
- 0.00%
AFRM has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
CRM
23.50%
Software Industry
- Max
- 12.76%
- Q3
- 6.56%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
At 23.50%, CRM’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Software industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.
Dividend at a Glance
| Symbol | AFRM | CRM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.68% |
| Dividend Payout Ratio (TTM) | 0.00% | 23.50% |
Valuation
Price-to-Earnings Ratio (TTM)
AFRM
96.53
Financial Services Industry
- Max
- 46.13
- Q3
- 28.79
- Median
- 13.18
- Q1
- 9.14
- Min
- 0.47
At 96.53, AFRM’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Financial Services industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
CRM
34.81
Software Industry
- Max
- 142.78
- Q3
- 72.24
- Median
- 36.21
- Q1
- 24.24
- Min
- 4.55
CRM’s P/E Ratio of 34.81 is within the middle range for the Software industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
AFRM
6.50
Financial Services Industry
- Max
- 9.71
- Q3
- 4.81
- Median
- 2.49
- Q1
- 1.25
- Min
- 0.04
The P/S Ratio is often not a primary valuation tool in the Financial Services industry.
CRM
5.87
Software Industry
- Max
- 20.79
- Q3
- 12.71
- Median
- 6.75
- Q1
- 4.56
- Min
- 0.87
CRM’s P/S Ratio of 5.87 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
AFRM
7.21
Financial Services Industry
- Max
- 7.21
- Q3
- 3.51
- Median
- 1.52
- Q1
- 0.88
- Min
- 0.08
AFRM’s P/B Ratio of 7.21 is in the upper tier for the Financial Services industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
CRM
4.03
Software Industry
- Max
- 30.49
- Q3
- 14.84
- Median
- 8.09
- Q1
- 4.32
- Min
- 0.38
CRM’s P/B Ratio of 4.03 is in the lower quartile for the Software industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | AFRM | CRM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 96.53 | 34.81 |
| Price-to-Sales Ratio (TTM) | 6.50 | 5.87 |
| Price-to-Book Ratio (MRQ) | 7.21 | 4.03 |
| Price-to-Free Cash Flow Ratio (TTM) | 29.25 | 18.56 |