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CRM vs. IBM: Salesforce vs. IBM Stock Comparison

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

Company profile comparison for Salesforce (CRM) and IBM (IBM)
Profile ItemCRMIBM
NameSalesforce, Inc.International Business Machines Corporation
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 USD231.55 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJune 23, 2004January 2, 1962
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

CRM
IBM
GSPC
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Salesforce (CRM) vs. IBM (IBM), 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 IBM (IBM). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Salesforce (CRM) and IBM (IBM)
MetricCRMIBM
Total Return (1Y)-9.04%-16.98%
Total Return (3Y, Annualized)1.64%22.40%
Total Return (5Y, Annualized)-6.57%19.64%

Risk Profile

Drawdown History

CRM
IBM
GSPC
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Salesforce (CRM) vs. IBM (IBM), 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 IBM (IBM). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Salesforce (CRM) and IBM (IBM)
MetricCRMIBM
Volatility (1Y, Annualized)47.53%48.48%
Beta (5Y)1.240.79
Max Drawdown (5Y)-58.67%-37.50%
Avg. Volume (3M)11.36M5.30M

Risk-Adjusted Performance

Risk-Return Positioning

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CRM and IBM 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 IBM (IBM)
MetricCRMIBM
Sharpe Ratio (1Y)-0.28-0.44
Sortino Ratio (1Y)-0.45-0.56

Profitability

ROE (TTM)

Both Salesforce (CRM) at 19.38% and IBM (IBM) at 34.77% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

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%

IBM

Software & Services industry group

34.77%

Max
53.85%
IBM
34.77%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%
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Salesforce (CRM) vs. IBM (IBM): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both Salesforce (CRM) at 21.99% and IBM (IBM) at 15.99% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

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%

IBM

Software & Services industry group

15.99%

Max
41.17%
IBM
15.99%
Q3
15.28%
Median
4.63%
Q1
-5.42%
Min
-33.17%
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Salesforce (CRM) vs. IBM (IBM): 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 IBM (IBM) at 16.97%, 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%

IBM

Software & Services industry group

16.97%

Max
46.89%
Q3
17.64%
IBM
16.97%
Median
8.73%
Q1
-2.13%
Min
-30.45%
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Salesforce (CRM) vs. IBM (IBM): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Salesforce (CRM) and IBM (IBM)
MetricCRMIBM
ROE (TTM)19.38%34.77%
ROA (TTM)5.70%5.33%
Net Margin (TTM)21.99%15.99%
Operating Margin (TTM)21.38%16.97%
Gross Margin (TTM)77.28%57.97%

Growth

Revenue Growth

Both Salesforce (CRM) at 9.58% and IBM (IBM) at 7.62% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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

EPS Growth

IBM (IBM) at 73.72% sits in the top EPS growth quartile, while Salesforce (CRM) at 22.64% is closer to the peer norm — faster per-share earnings growth for IBM.

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

Growth Metrics

Growth metrics for Salesforce (CRM) and IBM (IBM)
MetricCRMIBM
Revenue Growth (YoY)9.58%7.62%
Revenue Growth (3Y CAGR)9.82%3.72%
EPS Growth (YoY)22.64%73.72%
EPS Growth (3Y CAGR)233.65%83.76%

Financial Strength

Current Ratio (MRQ)

Both Salesforce (CRM) at 0.84 and IBM (IBM) at 0.86 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

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

IBM

Software & Services industry group

0.86

Max
5.11
Q3
2.77
Median
1.67
Q1
1.01
IBM
0.86
Min
0.03
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Salesforce (CRM) vs. IBM (IBM): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Salesforce (CRM) at 1.10 carries an industry-typical debt-to-equity mix, while IBM (IBM) at 1.85 uses more debt funding than most peers.

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

IBM

Software & Services industry group

1.85

Max
2.52
IBM
1.85
Q3
1.13
Median
0.40
Q1
0.07
Min
0.00
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Salesforce (CRM) vs. IBM (IBM): 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 IBM (IBM)
MetricCRMIBM
Current Ratio (MRQ)0.840.86
Debt / Equity (MRQ)1.101.85
Net Debt / EBITDA2.403.37

Dividends

Dividend Yield (TTM)

Both Salesforce (CRM) at 0.77% and IBM (IBM) at 2.73% 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%

IBM

Software & Services industry group

2.73%

IBM
2.73%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Salesforce (CRM) vs. IBM (IBM): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Both Salesforce (CRM) at 15.66% and IBM (IBM) at 57.51% 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%

IBM

Software & Services industry group

57.51%

IBM
57.51%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Salesforce (CRM) vs. IBM (IBM): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Salesforce (CRM) and IBM (IBM)
MetricCRMIBM
Dividend Yield (TTM)0.77%2.73%
Dividend Payout Ratio (TTM)15.66%57.51%

Valuation

P/E Ratio (TTM)

Both Salesforce (CRM) at 19.55 and IBM (IBM) at 20.90 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

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

IBM

Software & Services industry group

20.90

Max
112.94
Q3
60.32
Median
32.91
IBM
20.90
Q1
18.77
Min
6.69
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Salesforce (CRM) vs. IBM (IBM): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Salesforce (CRM) at 4.00 and IBM (IBM) at 3.31 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

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

IBM

Software & Services industry group

3.31

Max
17.91
Q3
8.78
Median
4.25
IBM
3.31
Q1
2.23
Min
0.02
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Salesforce (CRM) vs. IBM (IBM): 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 IBM (IBM) at 6.52 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

IBM

Software & Services industry group

6.52

Max
16.63
Q3
8.50
IBM
6.52
Median
4.30
Q1
1.92
Min
-3.90
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Salesforce (CRM) vs. IBM (IBM): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Salesforce (CRM) and IBM (IBM)
MetricCRMIBM
P/E Ratio (TTM)19.5520.90
P/S Ratio (TTM)4.003.31
P/B Ratio (MRQ)4.586.52
Free Cash Flow Yield (TTM)10.08%5.34%