CRM vs. CTSH: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CRM and CTSH, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CRM | CTSH |
|---|---|---|
| Company Name | Salesforce, Inc. | Cognizant Technology Solutions Corporation |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Software | IT Services |
| Market Capitalization | 229.51 billion USD | 35.54 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | June 23, 2004 | June 19, 1998 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CRM and CTSH 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 | CTSH |
|---|---|---|
| 5-Day Price Return | 0.81% | -0.36% |
| 13-Week Price Return | 0.50% | 3.74% |
| 26-Week Price Return | -15.74% | -10.64% |
| 52-Week Price Return | -28.70% | -11.78% |
| Month-to-Date Return | -6.43% | -0.36% |
| Year-to-Date Return | -27.12% | -5.57% |
| 10-Day Avg. Volume | 6.35M | 4.85M |
| 3-Month Avg. Volume | 8.36M | 4.31M |
| 3-Month Volatility | 32.37% | 24.33% |
| Beta | 1.29 | 0.98 |
Profitability
Return on Equity (TTM)
CRM
11.03%
Software Industry
- Max
- 65.88%
- Q3
- 22.54%
- Median
- 10.46%
- Q1
- -6.54%
- Min
- -41.05%
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.
CTSH
14.31%
IT Services Industry
- Max
- 37.08%
- Q3
- 19.28%
- Median
- 14.70%
- Q1
- 6.70%
- Min
- -8.16%
CTSH’s Return on Equity of 14.31% is on par with the norm for the IT Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
CRM
16.87%
Software Industry
- Max
- 53.50%
- Q3
- 20.30%
- Median
- 9.60%
- Q1
- -4.98%
- 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.
CTSH
10.20%
IT Services Industry
- Max
- 17.01%
- Q3
- 11.02%
- Median
- 6.91%
- Q1
- 3.07%
- Min
- -5.13%
CTSH’s Net Profit Margin of 10.20% is aligned with the median group of its peers in the IT Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
CRM
18.89%
Software Industry
- Max
- 61.99%
- Q3
- 23.67%
- Median
- 10.93%
- Q1
- -3.57%
- Min
- -40.19%
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.
CTSH
15.76%
IT Services Industry
- Max
- 23.01%
- Q3
- 15.32%
- Median
- 9.57%
- Q1
- 4.91%
- Min
- -9.58%
An Operating Profit Margin of 15.76% places CTSH in the upper quartile for the IT Services 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 | CTSH |
|---|---|---|
| Return on Equity (TTM) | 11.03% | 14.31% |
| Return on Assets (TTM) | 6.82% | 10.61% |
| Net Profit Margin (TTM) | 16.87% | 10.20% |
| Operating Profit Margin (TTM) | 18.89% | 15.76% |
| Gross Profit Margin (TTM) | 77.65% | 34.06% |
Financial Strength
Current Ratio (MRQ)
CRM
1.12
Software Industry
- Max
- 4.01
- Q3
- 2.27
- Median
- 1.50
- 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.
CTSH
2.36
IT Services Industry
- Max
- 3.02
- Q3
- 1.91
- Median
- 1.36
- Q1
- 1.02
- Min
- 0.49
CTSH’s Current Ratio of 2.36 is in the upper quartile for the IT Services industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
Debt-to-Equity Ratio (MRQ)
CRM
0.14
Software Industry
- Max
- 2.04
- Q3
- 0.86
- 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.
CTSH
0.04
IT Services Industry
- Max
- 2.55
- Q3
- 1.30
- Median
- 0.55
- Q1
- 0.14
- Min
- 0.00
Falling into the lower quartile for the IT Services industry, CTSH’s Debt-to-Equity Ratio of 0.04 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio (TTM)
CRM
19.86
Software Industry
- Max
- 89.65
- Q3
- 33.82
- Median
- 1.59
- Q1
- -10.48
- 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.
CTSH
100.81
IT Services Industry
- Max
- 129.00
- Q3
- 56.00
- Median
- 11.69
- Q1
- 1.68
- Min
- -28.15
CTSH’s Interest Coverage Ratio of 100.81 is in the upper quartile for the IT Services industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | CRM | CTSH |
|---|---|---|
| Current Ratio (MRQ) | 1.12 | 2.36 |
| Quick Ratio (MRQ) | 1.01 | 2.36 |
| Debt-to-Equity Ratio (MRQ) | 0.14 | 0.04 |
| Interest Coverage Ratio (TTM) | 19.86 | 100.81 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CRM
0.68%
Software Industry
- Max
- 0.34%
- Q3
- 0.17%
- 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.
CTSH
1.73%
IT Services Industry
- Max
- 4.66%
- Q3
- 2.02%
- Median
- 0.66%
- Q1
- 0.00%
- Min
- 0.00%
CTSH’s Dividend Yield of 1.73% is consistent with its peers in the IT Services industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
CRM
23.50%
Software Industry
- Max
- 12.76%
- Q3
- 6.56%
- 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.
CTSH
28.62%
IT Services Industry
- Max
- 93.78%
- Q3
- 63.22%
- Median
- 24.64%
- Q1
- 0.00%
- Min
- 0.00%
CTSH’s Dividend Payout Ratio of 28.62% is within the typical range for the IT Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | CRM | CTSH |
|---|---|---|
| Dividend Yield (TTM) | 0.68% | 1.73% |
| Dividend Payout Ratio (TTM) | 23.50% | 28.62% |
Valuation
Price-to-Earnings Ratio (TTM)
CRM
34.81
Software Industry
- Max
- 142.78
- Q3
- 72.24
- Median
- 36.21
- Q1
- 24.24
- Min
- 4.55
CRM’s P/E Ratio of 34.81 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.
CTSH
16.50
IT Services Industry
- Max
- 45.03
- Q3
- 30.25
- Median
- 21.01
- Q1
- 16.50
- Min
- 0.00
CTSH’s P/E Ratio of 16.50 is within the middle range for the IT Services 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
5.87
Software Industry
- Max
- 20.79
- Q3
- 12.71
- Median
- 6.75
- Q1
- 4.56
- Min
- 0.87
CRM’s P/S Ratio of 5.87 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.
CTSH
1.68
IT Services Industry
- Max
- 5.24
- Q3
- 4.01
- Median
- 2.18
- Q1
- 1.08
- Min
- 0.00
CTSH’s P/S Ratio of 1.68 aligns with the market consensus for the IT Services 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
- 30.49
- Q3
- 14.84
- Median
- 8.09
- Q1
- 4.32
- Min
- 0.38
CRM’s P/B Ratio of 4.03 is in the lower quartile for the Software industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
CTSH
2.20
IT Services Industry
- Max
- 9.42
- Q3
- 5.79
- Median
- 3.70
- Q1
- 2.30
- Min
- 0.79
CTSH’s P/B Ratio of 2.20 is in the lower quartile for the IT Services industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | CRM | CTSH |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 34.81 | 16.50 |
| Price-to-Sales Ratio (TTM) | 5.87 | 1.68 |
| Price-to-Book Ratio (MRQ) | 4.03 | 2.20 |
| Price-to-Free Cash Flow Ratio (TTM) | 18.56 | 13.24 |