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CRM vs. CTSH: Salesforce vs. Cognizant Stock Comparison

How do Salesforce (CRM) and Cognizant (CTSH) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Salesforce (CRM) and Cognizant (CTSH) both fall under the Software & Services industry group, but CRM is classified in Software while CTSH is classified in IT Services.

Company profile comparison for Salesforce (CRM) and Cognizant (CTSH)
Profile ItemCRMCTSH
NameSalesforce, Inc.Cognizant Technology Solutions Corp. Class A Common Stock
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareIT Services
GICS Sub-IndustryApplication SoftwareIT Consulting & Other Services
Market Capitalization175.83 billion USD28.93 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateJune 23, 2004June 19, 1998
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

CRM
CTSH
GSPC
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Salesforce (CRM) vs. Cognizant (CTSH), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Salesforce (CRM) and Cognizant (CTSH). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Salesforce (CRM) and Cognizant (CTSH). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Salesforce (CRM) and Cognizant (CTSH)
MetricCRMCTSH
Total Return (1Y)-9.04%-10.80%
Total Return (3Y, Annualized)1.64%1.40%
Total Return (5Y, Annualized)-6.57%-2.88%

Risk Profile

Drawdown History

CRM
CTSH
GSPC
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Salesforce (CRM) vs. Cognizant (CTSH), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Salesforce (CRM) and Cognizant (CTSH). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Salesforce (CRM) and Cognizant (CTSH)
MetricCRMCTSH
Volatility (1Y, Annualized)47.53%43.62%
Beta (5Y)1.240.83
Max Drawdown (5Y)-58.67%-56.08%
Avg. Volume (3M)11.36M6.65M

Risk-Adjusted Performance

Risk-Return Positioning

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CRM and CTSH are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Salesforce (CRM) and Cognizant (CTSH)
MetricCRMCTSH
Sharpe Ratio (1Y)-0.28-0.35
Sortino Ratio (1Y)-0.45-0.50

Profitability

ROE (TTM)

Salesforce (CRM) at 19.38% sits in the top ROE quartile, while Cognizant (CTSH) at 17.37% is closer to the peer norm — stronger capital efficiency for CRM.

CRM

Software & Services industry group

19.38%

Max
53.85%
CRM
19.38%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%

CTSH

Software & Services industry group

17.37%

Max
53.85%
Q3
17.90%
CTSH
17.37%
Median
6.59%
Q1
-9.59%
Min
-50.52%
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Salesforce (CRM) vs. Cognizant (CTSH): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Salesforce (CRM) at 21.99% retains a top-quartile share of revenue as profit, ahead of Cognizant (CTSH) at 11.75%, which keeps about the industry-typical share.

CRM

Software & Services industry group

21.99%

Max
41.17%
CRM
21.99%
Q3
15.28%
Median
4.63%
Q1
-5.42%
Min
-33.17%

CTSH

Software & Services industry group

11.75%

Max
41.17%
Q3
15.28%
CTSH
11.75%
Median
4.63%
Q1
-5.42%
Min
-33.17%
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Salesforce (CRM) vs. Cognizant (CTSH): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Salesforce (CRM) at 21.38% operates in the top operating margin quartile, ahead of Cognizant (CTSH) at 16.30%, which runs around its industry’s norm.

CRM

Software & Services industry group

21.38%

Max
46.89%
CRM
21.38%
Q3
17.64%
Median
8.73%
Q1
-2.13%
Min
-30.45%

CTSH

Software & Services industry group

16.30%

Max
46.89%
Q3
17.64%
CTSH
16.30%
Median
8.73%
Q1
-2.13%
Min
-30.45%
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Salesforce (CRM) vs. Cognizant (CTSH): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Salesforce (CRM) and Cognizant (CTSH)
MetricCRMCTSH
ROE (TTM)19.38%17.37%
ROA (TTM)5.70%10.78%
Net Margin (TTM)21.99%11.75%
Operating Margin (TTM)21.38%16.30%
Gross Margin (TTM)77.28%33.42%

Growth

Revenue Growth

Salesforce (CRM) at 9.58% is around its peer norm for revenue growth, while Cognizant (CTSH) at 6.95% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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Salesforce (CRM) vs. Cognizant (CTSH): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Salesforce (CRM) at 22.64% and Cognizant (CTSH) at 1.11% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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Salesforce (CRM) vs. Cognizant (CTSH): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Salesforce (CRM) and Cognizant (CTSH)
MetricCRMCTSH
Revenue Growth (YoY)9.58%6.95%
Revenue Growth (3Y CAGR)9.82%2.80%
EPS Growth (YoY)22.64%1.11%
EPS Growth (3Y CAGR)233.65%1.12%

Financial Strength

Current Ratio (MRQ)

Cognizant (CTSH) at 2.22 keeps current ratio within its industry’s typical mid-range, while Salesforce (CRM) at 0.84 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for CRM.

CRM

Software & Services industry group

0.84

Max
5.11
Q3
2.77
Median
1.67
Q1
1.01
CRM
0.84
Min
0.03

CTSH

Software & Services industry group

2.22

Max
5.11
Q3
2.77
CTSH
2.22
Median
1.67
Q1
1.01
Min
0.03
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Salesforce (CRM) vs. Cognizant (CTSH): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both Salesforce (CRM) at 1.10 and Cognizant (CTSH) at 0.14 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

CRM

Software & Services industry group

1.10

Max
2.52
Q3
1.13
CRM
1.10
Median
0.40
Q1
0.07
Min
0.00

CTSH

Software & Services industry group

0.14

Max
2.52
Q3
1.13
Median
0.40
CTSH
0.14
Q1
0.07
Min
0.00
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Salesforce (CRM) vs. Cognizant (CTSH): A comparison of their debt-to-equity ratio against the Software & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Salesforce (CRM) and Cognizant (CTSH)
MetricCRMCTSH
Current Ratio (MRQ)0.842.22
Debt / Equity (MRQ)1.100.14
Net Debt / EBITDA2.400.14

Dividends

Dividend Yield (TTM)

Both Salesforce (CRM) at 0.77% and Cognizant (CTSH) at 1.98% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

CRM

Software & Services industry group

0.77%

CRM
0.77%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

CTSH

Software & Services industry group

1.98%

CTSH
1.98%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Salesforce (CRM) vs. Cognizant (CTSH): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Both Salesforce (CRM) at 15.66% and Cognizant (CTSH) at 23.72% pay out more of their earnings than any of their industry peers — the thinnest cover in their groups, so dividend headroom deserves attention.

CRM

Software & Services industry group

15.66%

CRM
15.66%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

CTSH

Software & Services industry group

23.72%

CTSH
23.72%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Salesforce (CRM) vs. Cognizant (CTSH): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Salesforce (CRM) and Cognizant (CTSH)
MetricCRMCTSH
Dividend Yield (TTM)0.77%1.98%
Dividend Payout Ratio (TTM)15.66%23.72%

Valuation

P/E Ratio (TTM)

Cognizant (CTSH) at 11.81 sits in the cheaper P/E ratio quartile, while Salesforce (CRM) at 19.55 is closer to its industry’s usual earnings multiple — a discount for CTSH, though growth and earnings durability still matter.

CRM

Software & Services industry group

19.55

Max
112.94
Q3
60.32
Median
32.91
CRM
19.55
Q1
18.77
Min
6.69

CTSH

Software & Services industry group

11.81

Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
CTSH
11.81
Min
6.69
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Salesforce (CRM) vs. Cognizant (CTSH): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

Cognizant (CTSH) at 1.32 sits in the cheaper P/S ratio quartile while Salesforce (CRM) at 4.00 prices around its industry’s middle — CTSH costs less per dollar of sales, though read it alongside growth and margins.

CRM

Software & Services industry group

4.00

Max
17.91
Q3
8.78
Median
4.25
CRM
4.00
Q1
2.23
Min
0.02

CTSH

Software & Services industry group

1.32

Max
17.91
Q3
8.78
Median
4.25
Q1
2.23
CTSH
1.32
Min
0.02
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Salesforce (CRM) vs. Cognizant (CTSH): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both Salesforce (CRM) at 4.58 and Cognizant (CTSH) at 1.97 are valued close to their industries’ norm against book — neither stands out from peers.

CRM

Software & Services industry group

4.58

Max
16.63
Q3
8.50
CRM
4.58
Median
4.30
Q1
1.92
Min
-3.90

CTSH

Software & Services industry group

1.97

Max
16.63
Q3
8.50
Median
4.30
CTSH
1.97
Q1
1.92
Min
-3.90
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Salesforce (CRM) vs. Cognizant (CTSH): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Salesforce (CRM) and Cognizant (CTSH)
MetricCRMCTSH
P/E Ratio (TTM)19.5511.81
P/S Ratio (TTM)4.001.32
P/B Ratio (MRQ)4.581.97
Free Cash Flow Yield (TTM)10.08%7.19%