CRM vs. CSCO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CRM and CSCO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CRM | CSCO |
|---|---|---|
| Company Name | Salesforce, Inc. | Cisco Systems, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Software | Communications Equipment |
| Market Capitalization | 228.82 billion USD | 268.50 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | June 23, 2004 | February 16, 1990 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CRM and CSCO 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 | CRM | CSCO |
|---|---|---|
| 5-Day Price Return | -1.93% | 0.30% |
| 13-Week Price Return | -11.68% | -2.09% |
| 26-Week Price Return | -10.43% | 10.06% |
| 52-Week Price Return | -14.00% | 29.08% |
| Month-to-Date Return | 1.42% | -0.73% |
| Year-to-Date Return | -28.11% | 14.73% |
| 10-Day Avg. Volume | 7.87M | 17.47M |
| 3-Month Avg. Volume | 8.61M | 19.67M |
| 3-Month Volatility | 27.01% | 18.80% |
| Beta | 1.25 | 0.87 |
Profitability
Return on Equity (TTM)
CRM
11.03%
Software Industry
- Max
- 66.28%
- Q3
- 21.28%
- Median
- 9.33%
- Q1
- -8.77%
- Min
- -48.16%
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.
CSCO
22.18%
Communications Equipment Industry
- Max
- 32.30%
- Q3
- 20.90%
- Median
- 9.10%
- Q1
- 4.29%
- Min
- -13.50%
In the upper quartile for the Communications Equipment industry, CSCO’s Return on Equity of 22.18% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
CRM
16.87%
Software Industry
- Max
- 51.92%
- Q3
- 19.23%
- Median
- 6.98%
- Q1
- -7.14%
- 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.
CSCO
17.97%
Communications Equipment Industry
- Max
- 23.65%
- Q3
- 12.56%
- Median
- 5.62%
- Q1
- 2.50%
- Min
- -3.09%
A Net Profit Margin of 17.97% places CSCO in the upper quartile for the Communications Equipment industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
CRM
18.89%
Software Industry
- Max
- 60.40%
- Q3
- 21.25%
- Median
- 9.90%
- Q1
- -4.97%
- Min
- -43.50%
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.
CSCO
20.76%
Communications Equipment Industry
- Max
- 25.23%
- Q3
- 13.72%
- Median
- 6.44%
- Q1
- 3.00%
- Min
- -10.95%
An Operating Profit Margin of 20.76% places CSCO in the upper quartile for the Communications Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | CRM | CSCO |
|---|---|---|
| Return on Equity (TTM) | 11.03% | 22.18% |
| Return on Assets (TTM) | 6.82% | 8.37% |
| Net Profit Margin (TTM) | 16.87% | 17.97% |
| Operating Profit Margin (TTM) | 18.89% | 20.76% |
| Gross Profit Margin (TTM) | 77.65% | 64.94% |
Financial Strength
Current Ratio (MRQ)
CRM
1.12
Software Industry
- Max
- 4.29
- Q3
- 2.37
- Median
- 1.40
- 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.
CSCO
1.00
Communications Equipment Industry
- Max
- 3.33
- Q3
- 2.13
- Median
- 1.55
- Q1
- 1.15
- Min
- 0.91
CSCO’s Current Ratio of 1.00 falls into the lower quartile for the Communications Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
CRM
0.14
Software Industry
- Max
- 2.16
- Q3
- 0.86
- Median
- 0.31
- 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.
CSCO
0.60
Communications Equipment Industry
- Max
- 1.44
- Q3
- 0.86
- Median
- 0.53
- Q1
- 0.22
- Min
- 0.00
CSCO’s Debt-to-Equity Ratio of 0.60 is typical for the Communications Equipment 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)
CRM
19.86
Software Industry
- Max
- 89.65
- Q3
- 32.64
- Median
- 1.00
- Q1
- -9.84
- 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.
CSCO
22.76
Communications Equipment Industry
- Max
- 55.49
- Q3
- 34.19
- Median
- 7.59
- Q1
- 3.73
- Min
- -9.94
CSCO’s Interest Coverage Ratio of 22.76 is positioned comfortably within the norm for the Communications Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | CRM | CSCO |
|---|---|---|
| Current Ratio (MRQ) | 1.12 | 1.00 |
| Quick Ratio (MRQ) | 1.01 | 0.91 |
| Debt-to-Equity Ratio (MRQ) | 0.14 | 0.60 |
| Interest Coverage Ratio (TTM) | 19.86 | 22.76 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CRM
0.68%
Software Industry
- Max
- 0.22%
- Q3
- 0.11%
- 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.
CSCO
2.40%
Communications Equipment Industry
- Max
- 8.13%
- Q3
- 3.29%
- Median
- 0.94%
- Q1
- 0.00%
- Min
- 0.00%
CSCO’s Dividend Yield of 2.40% is consistent with its peers in the Communications Equipment industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
CRM
23.50%
Software Industry
- Max
- 3.29%
- Q3
- 2.41%
- 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.
CSCO
63.23%
Communications Equipment Industry
- Max
- 111.16%
- Q3
- 70.91%
- Median
- 30.78%
- Q1
- 0.00%
- Min
- 0.00%
CSCO’s Dividend Payout Ratio of 63.23% is within the typical range for the Communications Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | CRM | CSCO |
|---|---|---|
| Dividend Yield (TTM) | 0.68% | 2.40% |
| Dividend Payout Ratio (TTM) | 23.50% | 63.23% |
Valuation
Price-to-Earnings Ratio (TTM)
CRM
34.41
Software Industry
- Max
- 145.74
- Q3
- 94.88
- Median
- 45.35
- Q1
- 26.66
- Min
- 8.80
CRM’s P/E Ratio of 34.41 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.
CSCO
26.38
Communications Equipment Industry
- Max
- 103.74
- Q3
- 61.65
- Median
- 26.20
- Q1
- 18.12
- Min
- 4.19
CSCO’s P/E Ratio of 26.38 is within the middle range for the Communications Equipment 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)
CRM
5.80
Software Industry
- Max
- 25.67
- Q3
- 13.68
- Median
- 8.28
- Q1
- 4.95
- Min
- 0.90
CRM’s P/S Ratio of 5.80 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.
CSCO
4.74
Communications Equipment Industry
- Max
- 6.86
- Q3
- 6.24
- Median
- 2.44
- Q1
- 1.02
- Min
- 0.48
CSCO’s P/S Ratio of 4.74 aligns with the market consensus for the Communications Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
CRM
4.03
Software Industry
- Max
- 30.67
- Q3
- 14.92
- Median
- 8.52
- Q1
- 3.89
- Min
- 0.38
CRM’s P/B Ratio of 4.03 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.
CSCO
5.74
Communications Equipment Industry
- Max
- 6.28
- Q3
- 5.73
- Median
- 3.32
- Q1
- 2.02
- Min
- 0.42
CSCO’s P/B Ratio of 5.74 is in the upper tier for the Communications Equipment 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.
Valuation at a Glance
| Symbol | CRM | CSCO |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 34.41 | 26.38 |
| Price-to-Sales Ratio (TTM) | 5.80 | 4.74 |
| Price-to-Book Ratio (MRQ) | 4.03 | 5.74 |
| Price-to-Free Cash Flow Ratio (TTM) | 18.34 | 20.21 |