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

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

Company Profile

BABA trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, CRM is a standard domestic listing.

SymbolBABACRM
Company NameAlibaba Group Holding LimitedSalesforce, Inc.
CountryHong KongUnited States
GICS SectorConsumer DiscretionaryInformation Technology
GICS IndustryBroadline RetailSoftware
Market Capitalization302.48 billion USD226.60 billion USD
ExchangeNYSENYSE
Listing DateSeptember 19, 2014June 23, 2004
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of BABA 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.

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

Historical Performance at a Glance

SymbolBABACRM
5-Day Price Return4.88%-1.60%
13-Week Price Return-4.29%-17.93%
26-Week Price Return26.38%-28.35%
52-Week Price Return56.79%-5.68%
Month-to-Date Return5.16%-8.25%
Year-to-Date Return49.62%-29.10%
10-Day Avg. Volume11.40M8.49M
3-Month Avg. Volume16.86M7.42M
3-Month Volatility38.28%26.02%
Beta0.111.22

Profitability

Return on Equity (TTM)

BABA

13.27%

Broadline Retail Industry

Max
49.17%
Q3
28.98%
Median
19.22%
Q1
10.86%
Min
-11.14%

BABA’s Return on Equity of 13.27% is on par with the norm for the Broadline Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.

CRM

10.43%

Software Industry

Max
59.01%
Q3
21.98%
Median
7.15%
Q1
-11.12%
Min
-51.24%

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

BABA vs. CRM: A comparison of their Return on Equity (TTM) against their respective Broadline Retail and Software industry benchmarks.

Net Profit Margin (TTM)

BABA

12.99%

Broadline Retail Industry

Max
19.78%
Q3
11.90%
Median
8.63%
Q1
5.21%
Min
0.82%

A Net Profit Margin of 12.99% places BABA in the upper quartile for the Broadline Retail industry, signifying strong profitability and more effective cost management than most of its peers.

CRM

16.08%

Software Industry

Max
48.14%
Q3
18.23%
Median
5.60%
Q1
-9.22%
Min
-49.36%

CRM’s Net Profit Margin of 16.08% 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.

BABA vs. CRM: A comparison of their Net Profit Margin (TTM) against their respective Broadline Retail and Software industry benchmarks.

Operating Profit Margin (TTM)

BABA

14.14%

Broadline Retail Industry

Max
27.23%
Q3
15.96%
Median
11.13%
Q1
8.31%
Min
1.77%

BABA’s Operating Profit Margin of 14.14% is around the midpoint for the Broadline Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.

CRM

18.10%

Software Industry

Max
57.34%
Q3
20.60%
Median
7.84%
Q1
-8.72%
Min
-51.37%

CRM’s Operating Profit Margin of 18.10% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.

BABA vs. CRM: A comparison of their Operating Profit Margin (TTM) against their respective Broadline Retail and Software industry benchmarks.

Profitability at a Glance

SymbolBABACRM
Return on Equity (TTM)13.27%10.43%
Return on Assets (TTM)7.19%6.44%
Net Profit Margin (TTM)12.99%16.08%
Operating Profit Margin (TTM)14.14%18.10%
Gross Profit Margin (TTM)39.95%77.34%

Financial Strength

Current Ratio (MRQ)

BABA

1.55

Broadline Retail Industry

Max
3.54
Q3
2.42
Median
1.49
Q1
1.22
Min
0.67

BABA’s Current Ratio of 1.55 aligns with the median group of the Broadline Retail industry, indicating that its short-term liquidity is in line with its sector peers.

CRM

1.07

Software Industry

Max
3.83
Q3
2.31
Median
1.45
Q1
1.03
Min
0.24

CRM’s Current Ratio of 1.07 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.

BABA vs. CRM: A comparison of their Current Ratio (MRQ) against their respective Broadline Retail and Software industry benchmarks.

Debt-to-Equity Ratio (MRQ)

BABA

0.23

Broadline Retail Industry

Max
2.14
Q3
1.34
Median
0.63
Q1
0.27
Min
0.00

Falling into the lower quartile for the Broadline Retail industry, BABA’s Debt-to-Equity Ratio of 0.23 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

CRM

0.14

Software Industry

Max
2.14
Q3
0.90
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.

BABA vs. CRM: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Broadline Retail and Software industry benchmarks.

Interest Coverage Ratio (TTM)

BABA

9.56

Broadline Retail Industry

Max
37.34
Q3
20.63
Median
11.28
Q1
4.22
Min
-19.29

BABA’s Interest Coverage Ratio of 9.56 is positioned comfortably within the norm for the Broadline Retail industry, indicating a standard and healthy capacity to cover its interest payments.

CRM

19.86

Software Industry

Max
67.02
Q3
19.86
Median
0.70
Q1
-12.50
Min
-53.00

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.

BABA vs. CRM: A comparison of their Interest Coverage Ratio (TTM) against their respective Broadline Retail and Software industry benchmarks.

Financial Strength at a Glance

SymbolBABACRM
Current Ratio (MRQ)1.551.07
Quick Ratio (MRQ)1.080.98
Debt-to-Equity Ratio (MRQ)0.230.14
Interest Coverage Ratio (TTM)9.5619.86

Growth

Revenue Growth

BABA vs. CRM: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

BABA vs. CRM: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

BABA

2.85%

Broadline Retail Industry

Max
5.46%
Q3
2.38%
Median
0.43%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 2.85%, BABA offers a more attractive income stream than most of its peers in the Broadline Retail industry, signaling a strong commitment to shareholder returns.

CRM

0.71%

Software Industry

Max
0.08%
Q3
0.03%
Median
0.00%
Q1
0.00%
Min
0.00%

CRM’s Dividend Yield of 0.71% 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.

BABA vs. CRM: A comparison of their Dividend Yield (TTM) against their respective Broadline Retail and Software industry benchmarks.

Dividend Payout Ratio (TTM)

BABA

103.01%

Broadline Retail Industry

Max
131.17%
Q3
63.48%
Median
29.43%
Q1
0.00%
Min
0.00%

BABA’s Dividend Payout Ratio of 103.01% is in the upper quartile for the Broadline Retail 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.

CRM

25.00%

Software Industry

Max
1.32%
Q3
0.53%
Median
0.00%
Q1
0.00%
Min
0.00%

At 25.00%, 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.

BABA vs. CRM: A comparison of their Dividend Payout Ratio (TTM) against their respective Broadline Retail and Software industry benchmarks.

Dividend at a Glance

SymbolBABACRM
Dividend Yield (TTM)2.85%0.71%
Dividend Payout Ratio (TTM)103.01%25.00%

Valuation

Price-to-Earnings Ratio (TTM)

BABA

15.70

Broadline Retail Industry

Max
66.12
Q3
35.17
Median
16.29
Q1
10.47
Min
5.94

BABA’s P/E Ratio of 15.70 is within the middle range for the Broadline Retail 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

35.45

Software Industry

Max
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

CRM’s P/E Ratio of 35.45 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.

BABA vs. CRM: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Broadline Retail and Software industry benchmarks.

Price-to-Sales Ratio (TTM)

BABA

2.04

Broadline Retail Industry

Max
5.40
Q3
3.33
Median
2.04
Q1
0.80
Min
0.16

BABA’s P/S Ratio of 2.04 aligns with the market consensus for the Broadline Retail industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

CRM

5.70

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

CRM’s P/S Ratio of 5.70 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.

BABA vs. CRM: A comparison of their Price-to-Sales Ratio (TTM) against their respective Broadline Retail and Software industry benchmarks.

Price-to-Book Ratio (MRQ)

BABA

2.23

Broadline Retail Industry

Max
9.06
Q3
5.22
Median
3.48
Q1
1.90
Min
0.74

BABA’s P/B Ratio of 2.23 is within the conventional range for the Broadline Retail industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

CRM

4.25

Software Industry

Max
30.95
Q3
14.91
Median
7.75
Q1
3.60
Min
0.38

CRM’s P/B Ratio of 4.25 is within the conventional range for the Software industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

BABA vs. CRM: A comparison of their Price-to-Book Ratio (MRQ) against their respective Broadline Retail and Software industry benchmarks.

Valuation at a Glance

SymbolBABACRM
Price-to-Earnings Ratio (TTM)15.7035.45
Price-to-Sales Ratio (TTM)2.045.70
Price-to-Book Ratio (MRQ)2.234.25
Price-to-Free Cash Flow Ratio (TTM)26.2217.39