Seek Returns logo

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

Updated on

Here’s a clear look at APP 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 APP’s 115.62 billion USD, highlighting its more substantial market valuation.

APP’s beta of 2.53 points to significantly higher volatility compared to CRM (beta: 1.38), suggesting APP has greater potential for both gains and losses relative to market movements.

SymbolAPPCRM
Company NameAppLovin CorporationSalesforce, Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySoftware - ApplicationSoftware - Application
CEOAdam Arash ForoughiMarc R. Benioff
Price341.64 USD272.15 USD
Market Cap115.62 billion USD260.18 billion USD
Beta2.531.38
ExchangeNASDAQNYSE
IPO DateApril 15, 2021June 23, 2004
ADRNoNo

Historical Performance

This chart compares the performance of APP 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.

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

Profitability

Return on Equity

APP

224.68%

Software - Application Industry

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

APP’s Return on Equity of 224.68% is exceptionally high, placing it well beyond the typical range for the Software - Application industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

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.

APP vs. CRM: A comparison of their ROE against the Software - Application industry benchmark.

Return on Invested Capital

APP

48.77%

Software - Application Industry

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

APP’s Return on Invested Capital of 48.77% is exceptionally high, placing it well beyond the typical range for the Software - Application industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.

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.

APP vs. CRM: A comparison of their ROIC against the Software - Application industry benchmark.

Net Profit Margin

APP

37.39%

Software - Application Industry

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

A Net Profit Margin of 37.39% places APP in the upper quartile for the Software - Application industry, signifying strong profitability and more effective cost management than most of its peers.

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.

APP vs. CRM: A comparison of their Net Profit Margin against the Software - Application industry benchmark.

Operating Profit Margin

APP

42.86%

Software - Application Industry

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

An Operating Profit Margin of 42.86% places APP 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.

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.

APP vs. CRM: A comparison of their Operating Margin against the Software - Application industry benchmark.

Profitability at a Glance

SymbolAPPCRM
Return on Equity (TTM)224.68%10.43%
Return on Assets (TTM)33.64%6.29%
Return on Invested Capital (TTM)48.77%8.16%
Net Profit Margin (TTM)37.39%16.08%
Operating Profit Margin (TTM)42.86%19.27%
Gross Profit Margin (TTM)77.40%77.34%

Financial Strength

Current Ratio

APP

1.68

Software - Application Industry

Max
5.09
Q3
2.84
Median
1.70
Q1
1.12
Min
0.04

APP’s Current Ratio of 1.68 aligns with the median group of the Software - Application industry, indicating that its short-term liquidity is in line with its sector peers.

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.

APP vs. CRM: A comparison of their Current Ratio against the Software - Application industry benchmark.

Debt-to-Equity Ratio

APP

6.45

Software - Application Industry

Max
1.85
Q3
0.77
Median
0.18
Q1
0.05
Min
0.00

With a Debt-to-Equity Ratio of 6.45, APP operates with exceptionally high leverage compared to the Software - Application industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

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.

APP vs. CRM: A comparison of their D/E Ratio against the Software - Application industry benchmark.

Interest Coverage Ratio

APP

7.41

Software - Application Industry

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

APP’s Interest Coverage Ratio of 7.41 is positioned comfortably within the norm for the Software - Application industry, indicating a standard and healthy capacity to cover its interest payments.

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.

APP vs. CRM: A comparison of their Interest Coverage against the Software - Application industry benchmark.

Financial Strength at a Glance

SymbolAPPCRM
Current Ratio (TTM)1.681.07
Quick Ratio (TTM)1.681.07
Debt-to-Equity Ratio (TTM)6.450.19
Debt-to-Asset Ratio (TTM)0.650.12
Net Debt-to-EBITDA Ratio (TTM)1.200.04
Interest Coverage Ratio (TTM)7.41--

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

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

Dividend

Dividend Yield

APP

0.00%

Software - Application Industry

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

APP 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.

APP vs. CRM: A comparison of their Dividend Yield against the Software - Application industry benchmark.

Dividend Payout Ratio

APP

0.00%

Software - Application Industry

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

APP 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.

APP vs. CRM: A comparison of their Payout Ratio against the Software - Application industry benchmark.

Dividend at a Glance

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

Valuation

Price-to-Earnings Ratio

APP

60.47

Software - Application Industry

Max
194.31
Q3
98.56
Median
51.87
Q1
22.76
Min
1.02

APP’s P/E Ratio of 60.47 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.

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.

APP vs. CRM: A comparison of their P/E Ratio against the Software - Application industry benchmark.

Forward P/E to Growth Ratio

APP

2.46

Software - Application Industry

Max
15.44
Q3
6.57
Median
2.78
Q1
0.55
Min
0.00

APP’s Forward PEG Ratio of 2.46 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.

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.

APP vs. CRM: A comparison of their Forward PEG Ratio against the Software - Application industry benchmark.

Price-to-Sales Ratio

APP

22.51

Software - Application Industry

Max
23.49
Q3
11.14
Median
5.62
Q1
2.84
Min
0.33

APP’s P/S Ratio of 22.51 is in the upper echelon for the Software - Application industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

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.

APP vs. CRM: A comparison of their P/S Ratio against the Software - Application industry benchmark.

Price-to-Book Ratio

APP

201.77

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.

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.

APP vs. CRM: A comparison of their P/B Ratio against the Software - Application industry benchmark.

Valuation at a Glance

SymbolAPPCRM
Price-to-Earnings Ratio (P/E, TTM)60.4742.51
Forward PEG Ratio (TTM)2.463.28
Price-to-Sales Ratio (P/S, TTM)22.516.74
Price-to-Book Ratio (P/B, TTM)201.774.35
Price-to-Free Cash Flow Ratio (P/FCF, TTM)45.6420.57
EV-to-EBITDA (TTM)45.1623.07
EV-to-Sales (TTM)23.136.75