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

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

Company Profile

SymbolCRMHOOD
Company NameSalesforce, Inc.Robinhood Markets, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyFinancials
GICS IndustrySoftwareCapital Markets
Market Capitalization226.60 billion USD96.53 billion USD
ExchangeNYSENasdaqGS
Listing DateJune 23, 2004July 29, 2021
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of CRM and HOOD 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.

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

Historical Performance at a Glance

SymbolCRMHOOD
5-Day Price Return-1.60%-2.35%
13-Week Price Return-17.93%89.13%
26-Week Price Return-28.35%104.29%
52-Week Price Return-5.68%485.87%
Month-to-Date Return-8.25%5.41%
Year-to-Date Return-29.10%191.52%
10-Day Avg. Volume8.49M45.76M
3-Month Avg. Volume7.42M45.47M
3-Month Volatility26.02%55.10%
Beta1.222.37

Profitability

Return on Equity (TTM)

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.

HOOD

22.92%

Capital Markets Industry

Max
38.97%
Q3
21.61%
Median
13.77%
Q1
8.31%
Min
-4.25%

In the upper quartile for the Capital Markets industry, HOOD’s Return on Equity of 22.92% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

CRM vs. HOOD: A comparison of their Return on Equity (TTM) against their respective Software and Capital Markets industry benchmarks.

Net Profit Margin (TTM)

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.

HOOD

50.13%

Capital Markets Industry

Max
66.67%
Q3
35.11%
Median
23.49%
Q1
13.63%
Min
-15.18%

A Net Profit Margin of 50.13% places HOOD in the upper quartile for the Capital Markets industry, signifying strong profitability and more effective cost management than most of its peers.

CRM vs. HOOD: A comparison of their Net Profit Margin (TTM) against their respective Software and Capital Markets industry benchmarks.

Operating Profit Margin (TTM)

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.

HOOD

42.50%

Capital Markets Industry

Max
86.40%
Q3
46.46%
Median
32.80%
Q1
18.32%
Min
-21.87%

HOOD’s Operating Profit Margin of 42.50% is around the midpoint for the Capital Markets industry, indicating that its efficiency in managing core business operations is typical for the sector.

CRM vs. HOOD: A comparison of their Operating Profit Margin (TTM) against their respective Software and Capital Markets industry benchmarks.

Profitability at a Glance

SymbolCRMHOOD
Return on Equity (TTM)10.43%22.92%
Return on Assets (TTM)6.44%5.41%
Net Profit Margin (TTM)16.08%50.13%
Operating Profit Margin (TTM)18.10%42.50%
Gross Profit Margin (TTM)77.34%94.76%

Financial Strength

Current Ratio (MRQ)

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.

HOOD

1.25

Capital Markets Industry

Max
3.76
Q3
1.89
Median
1.01
Q1
0.54
Min
-0.41

For the Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

CRM vs. HOOD: A comparison of their Current Ratio (MRQ) against their respective Software and Capital Markets industry benchmarks.

Debt-to-Equity Ratio (MRQ)

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.

HOOD

1.57

Capital Markets Industry

Max
6.62
Q3
2.84
Median
1.02
Q1
0.32
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.

CRM vs. HOOD: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Capital Markets industry benchmarks.

Interest Coverage Ratio (TTM)

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.

HOOD

--

Capital Markets Industry

Max
126.03
Q3
60.98
Median
11.77
Q1
4.95
Min
-36.26

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Capital Markets industry.

CRM vs. HOOD: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and Capital Markets industry benchmarks.

Financial Strength at a Glance

SymbolCRMHOOD
Current Ratio (MRQ)1.071.25
Quick Ratio (MRQ)0.981.24
Debt-to-Equity Ratio (MRQ)0.141.57
Interest Coverage Ratio (TTM)19.86--

Growth

Revenue Growth

CRM vs. HOOD: 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

CRM vs. HOOD: 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)

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.

HOOD

0.00%

Capital Markets Industry

Max
10.26%
Q3
4.86%
Median
2.78%
Q1
1.22%
Min
0.00%

HOOD 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 vs. HOOD: A comparison of their Dividend Yield (TTM) against their respective Software and Capital Markets industry benchmarks.

Dividend Payout Ratio (TTM)

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.

HOOD

0.00%

Capital Markets Industry

Max
200.72%
Q3
101.92%
Median
57.97%
Q1
32.36%
Min
0.00%

HOOD 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 vs. HOOD: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Capital Markets industry benchmarks.

Dividend at a Glance

SymbolCRMHOOD
Dividend Yield (TTM)0.71%0.00%
Dividend Payout Ratio (TTM)25.00%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

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.

HOOD

53.99

Capital Markets Industry

Max
58.89
Q3
31.00
Median
18.54
Q1
12.09
Min
5.24

A P/E Ratio of 53.99 places HOOD in the upper quartile for the Capital Markets industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

CRM vs. HOOD: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Capital Markets industry benchmarks.

Price-to-Sales Ratio (TTM)

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.

HOOD

27.06

Capital Markets Industry

Max
14.49
Q3
7.41
Median
4.68
Q1
2.25
Min
0.04

With a P/S Ratio of 27.06, HOOD trades at a valuation that eclipses even the highest in the Capital Markets industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

CRM vs. HOOD: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Capital Markets industry benchmarks.

Price-to-Book Ratio (MRQ)

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.

HOOD

10.24

Capital Markets Industry

Max
9.48
Q3
4.94
Median
2.42
Q1
1.21
Min
0.38

At 10.24, HOOD’s P/B Ratio is at an extreme premium to the Capital Markets industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

CRM vs. HOOD: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Capital Markets industry benchmarks.

Valuation at a Glance

SymbolCRMHOOD
Price-to-Earnings Ratio (TTM)35.4553.99
Price-to-Sales Ratio (TTM)5.7027.06
Price-to-Book Ratio (MRQ)4.2510.24
Price-to-Free Cash Flow Ratio (TTM)17.3916.32