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ALAB vs. CRM: A Head-to-Head Stock Comparison

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Here’s a clear look at ALAB and CRM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

CRM’s market capitalization of 260.18 billion USD is significantly greater than ALAB’s 14.97 billion USD, highlighting its more substantial market valuation.

With betas of 1.40 for ALAB and 1.38 for CRM, both stocks show similar sensitivity to overall market movements.

SymbolALABCRM
Company NameAstera Labs, Inc. Common StockSalesforce, Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySemiconductorsSoftware - Application
CEOJitendra MohanMarc R. Benioff
Price90.8 USD272.15 USD
Market Cap14.97 billion USD260.18 billion USD
Beta1.401.38
ExchangeNASDAQNYSE
IPO DateMarch 20, 2024June 23, 2004
ADRNoNo

Historical Performance

This chart compares the performance of ALAB 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.

ALAB vs. CRM: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

ALAB

4.43%

Semiconductors Industry

Max
41.84%
Q3
15.81%
Median
6.31%
Q1
-5.54%
Min
-30.12%

ALAB’s Return on Equity of 4.43% is on par with the norm for the Semiconductors industry, indicating its profitability relative to shareholder equity is typical for the sector.

CRM

10.43%

Software - Application Industry

Max
59.01%
Q3
17.85%
Median
4.73%
Q1
-10.56%
Min
-52.94%

CRM’s Return on Equity of 10.43% is on par with the norm for the Software - Application industry, indicating its profitability relative to shareholder equity is typical for the sector.

ALAB vs. CRM: A comparison of their ROE against their respective Semiconductors and Software - Application industry benchmarks.

Return on Invested Capital

ALAB

-4.25%

Semiconductors Industry

Max
30.91%
Q3
11.34%
Median
4.08%
Q1
-2.17%
Min
-19.59%

ALAB has a negative Return on Invested Capital of -4.25%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.

CRM

8.16%

Software - Application Industry

Max
35.07%
Q3
9.72%
Median
0.76%
Q1
-8.68%
Min
-34.12%

CRM’s Return on Invested Capital of 8.16% is in line with the norm for the Software - Application industry, reflecting a standard level of efficiency in generating profits from its capital base.

ALAB vs. CRM: A comparison of their ROIC against their respective Semiconductors and Software - Application industry benchmarks.

Net Profit Margin

ALAB

8.44%

Semiconductors Industry

Max
51.69%
Q3
19.67%
Median
8.56%
Q1
-5.44%
Min
-38.60%

ALAB’s Net Profit Margin of 8.44% is aligned with the median group of its peers in the Semiconductors industry. This indicates its ability to convert revenue into profit is typical for the sector.

CRM

16.08%

Software - Application Industry

Max
48.14%
Q3
16.07%
Median
1.83%
Q1
-9.60%
Min
-45.64%

A Net Profit Margin of 16.08% places CRM in the upper quartile for the Software - Application industry, signifying strong profitability and more effective cost management than most of its peers.

ALAB vs. CRM: A comparison of their Net Profit Margin against their respective Semiconductors and Software - Application industry benchmarks.

Operating Profit Margin

ALAB

-4.45%

Semiconductors Industry

Max
58.03%
Q3
22.12%
Median
8.40%
Q1
-3.73%
Min
-36.14%

ALAB has a negative Operating Profit Margin of -4.45%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

CRM

19.27%

Software - Application Industry

Max
51.67%
Q3
15.35%
Median
1.79%
Q1
-12.42%
Min
-45.17%

An Operating Profit Margin of 19.27% places CRM in the upper quartile for the Software - Application industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ALAB vs. CRM: A comparison of their Operating Margin against their respective Semiconductors and Software - Application industry benchmarks.

Profitability at a Glance

SymbolALABCRM
Return on Equity (TTM)4.43%10.43%
Return on Assets (TTM)3.69%6.29%
Return on Invested Capital (TTM)-4.25%8.16%
Net Profit Margin (TTM)8.44%16.08%
Operating Profit Margin (TTM)-4.45%19.27%
Gross Profit Margin (TTM)75.76%77.34%

Financial Strength

Current Ratio

ALAB

13.92

Semiconductors Industry

Max
9.10
Q3
5.23
Median
3.09
Q1
2.49
Min
1.02

ALAB’s Current Ratio of 13.92 is exceptionally high, placing it well outside the typical range for the Semiconductors industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

CRM

1.07

Software - Application Industry

Max
5.09
Q3
2.84
Median
1.70
Q1
1.12
Min
0.04

CRM’s Current Ratio of 1.07 falls into the lower quartile for the Software - Application industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ALAB vs. CRM: A comparison of their Current Ratio against their respective Semiconductors and Software - Application industry benchmarks.

Debt-to-Equity Ratio

ALAB

--

Semiconductors Industry

Max
0.97
Q3
0.46
Median
0.21
Q1
0.05
Min
0.00

Debt-to-Equity Ratio data for ALAB is currently unavailable.

CRM

0.19

Software - Application Industry

Max
1.85
Q3
0.77
Median
0.18
Q1
0.05
Min
0.00

CRM’s Debt-to-Equity Ratio of 0.19 is typical for the Software - Application industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ALAB vs. CRM: A comparison of their D/E Ratio against their respective Semiconductors and Software - Application industry benchmarks.

Interest Coverage Ratio

ALAB

--

Semiconductors Industry

Max
36.25
Q3
29.12
Median
7.01
Q1
-1.22
Min
-18.18

Interest Coverage Ratio data for ALAB is currently unavailable.

CRM

--

Software - Application Industry

Max
39.23
Q3
8.55
Median
1.48
Q1
-14.59
Min
-39.97

Interest Coverage Ratio data for CRM is currently unavailable.

ALAB vs. CRM: A comparison of their Interest Coverage against their respective Semiconductors and Software - Application industry benchmarks.

Financial Strength at a Glance

SymbolALABCRM
Current Ratio (TTM)13.921.07
Quick Ratio (TTM)13.261.07
Debt-to-Equity Ratio (TTM)--0.19
Debt-to-Asset Ratio (TTM)--0.12
Net Debt-to-EBITDA Ratio (TTM)4.760.04
Interest Coverage Ratio (TTM)----

Growth

The following charts compare key year-over-year (YoY) growth metrics for ALAB and CRM. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ALAB vs. CRM: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ALAB vs. CRM: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ALAB vs. CRM: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ALAB

0.00%

Semiconductors Industry

Max
6.48%
Q3
0.93%
Median
0.00%
Q1
0.00%
Min
0.00%

ALAB 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

0.60%

Software - Application Industry

Max
3.66%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 0.60%, CRM offers a more attractive income stream than most of its peers in the Software - Application industry, signaling a strong commitment to shareholder returns.

ALAB vs. CRM: A comparison of their Dividend Yield against their respective Semiconductors and Software - Application industry benchmarks.

Dividend Payout Ratio

ALAB

0.00%

Semiconductors Industry

Max
204.29%
Q3
31.85%
Median
0.00%
Q1
0.00%
Min
0.00%

ALAB 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

25.00%

Software - Application Industry

Max
81.09%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

CRM’s Dividend Payout Ratio of 25.00% is in the upper quartile for the Software - Application industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

ALAB vs. CRM: A comparison of their Payout Ratio against their respective Semiconductors and Software - Application industry benchmarks.

Dividend at a Glance

SymbolALABCRM
Dividend Yield (TTM)0.00%0.60%
Dividend Payout Ratio (TTM)0.00%25.00%

Valuation

Price-to-Earnings Ratio

ALAB

357.98

Semiconductors Industry

Max
86.15
Q3
47.38
Median
27.87
Q1
18.89
Min
4.73

At 357.98, ALAB’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Semiconductors 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

42.51

Software - Application Industry

Max
194.31
Q3
98.56
Median
51.87
Q1
22.76
Min
1.02

CRM’s P/E Ratio of 42.51 is within the middle range for the Software - Application industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ALAB vs. CRM: A comparison of their P/E Ratio against their respective Semiconductors and Software - Application industry benchmarks.

Forward P/E to Growth Ratio

ALAB

10.80

Semiconductors Industry

Max
4.73
Q3
2.80
Median
1.11
Q1
0.68
Min
0.01

The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.

CRM

3.28

Software - Application Industry

Max
15.44
Q3
6.57
Median
2.78
Q1
0.55
Min
0.00

CRM’s Forward PEG Ratio of 3.28 is within the middle range of its peers in the Software - Application industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

ALAB vs. CRM: A comparison of their Forward PEG Ratio against their respective Semiconductors and Software - Application industry benchmarks.

Price-to-Sales Ratio

ALAB

30.53

Semiconductors Industry

Max
21.96
Q3
10.21
Median
4.45
Q1
2.32
Min
0.48

With a P/S Ratio of 30.53, ALAB trades at a valuation that eclipses even the highest in the Semiconductors industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

CRM

6.74

Software - Application Industry

Max
23.49
Q3
11.14
Median
5.62
Q1
2.84
Min
0.33

CRM’s P/S Ratio of 6.74 aligns with the market consensus for the Software - Application industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ALAB vs. CRM: A comparison of their P/S Ratio against their respective Semiconductors and Software - Application industry benchmarks.

Price-to-Book Ratio

ALAB

14.23

Semiconductors Industry

Max
13.12
Q3
6.49
Median
3.31
Q1
1.74
Min
0.23

At 14.23, ALAB’s P/B Ratio is at an extreme premium to the Semiconductors industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

CRM

4.35

Software - Application Industry

Max
21.03
Q3
10.49
Median
6.36
Q1
2.89
Min
0.12

The P/B Ratio is often not a primary valuation metric for the Software - Application industry.

ALAB vs. CRM: A comparison of their P/B Ratio against their respective Semiconductors and Software - Application industry benchmarks.

Valuation at a Glance

SymbolALABCRM
Price-to-Earnings Ratio (P/E, TTM)357.9842.51
Forward PEG Ratio (TTM)10.803.28
Price-to-Sales Ratio (P/S, TTM)30.536.74
Price-to-Book Ratio (P/B, TTM)14.234.35
Price-to-Free Cash Flow Ratio (P/FCF, TTM)138.4420.57
EV-to-EBITDA (TTM)-820.3223.07
EV-to-Sales (TTM)30.356.75