Seek Returns logo

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

Updated on

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

Company Profile

SymbolCRMKO
Company NameSalesforce, Inc.The Coca-Cola Company
CountryUnited StatesUnited States
GICS SectorInformation TechnologyConsumer Staples
GICS IndustrySoftwareBeverages
Market Capitalization230.46 billion USD287.40 billion USD
ExchangeNYSENYSE
Listing DateJune 23, 2004January 2, 1962
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of CRM and KO 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. KO: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolCRMKO
5-Day Price Return-2.18%1.21%
13-Week Price Return-13.32%-6.82%
26-Week Price Return-15.16%-5.60%
52-Week Price Return-13.89%-7.07%
Month-to-Date Return-0.55%0.69%
Year-to-Date Return-29.50%7.26%
10-Day Avg. Volume8.34M16.78M
3-Month Avg. Volume8.65M15.89M
3-Month Volatility26.84%13.32%
Beta1.250.40

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.

KO

45.90%

Beverages Industry

Max
45.90%
Q3
22.74%
Median
10.10%
Q1
6.35%
Min
-13.21%

In the upper quartile for the Beverages industry, KO’s Return on Equity of 45.90% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

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

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.

KO

25.89%

Beverages Industry

Max
21.38%
Q3
12.24%
Median
8.43%
Q1
5.97%
Min
0.65%

KO’s Net Profit Margin of 25.89% is exceptionally high, placing it well beyond the typical range for the Beverages industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

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

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.

KO

29.32%

Beverages Industry

Max
29.32%
Q3
20.15%
Median
13.14%
Q1
10.74%
Min
1.24%

An Operating Profit Margin of 29.32% places KO in the upper quartile for the Beverages industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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

Profitability at a Glance

SymbolCRMKO
Return on Equity (TTM)11.03%45.90%
Return on Assets (TTM)6.82%11.80%
Net Profit Margin (TTM)16.87%25.89%
Operating Profit Margin (TTM)18.89%29.32%
Gross Profit Margin (TTM)77.65%61.43%

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.

KO

1.21

Beverages Industry

Max
3.52
Q3
2.00
Median
1.22
Q1
0.87
Min
0.55

KO’s Current Ratio of 1.21 aligns with the median group of the Beverages industry, indicating that its short-term liquidity is in line with its sector peers.

CRM vs. KO: A comparison of their Current Ratio (MRQ) against their respective Software and Beverages industry benchmarks.

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.

KO

1.73

Beverages Industry

Max
2.14
Q3
1.14
Median
0.74
Q1
0.37
Min
0.00

KO’s leverage is in the upper quartile of the Beverages industry, with a Debt-to-Equity Ratio of 1.73. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

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

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.

KO

67.13

Beverages Industry

Max
78.96
Q3
42.68
Median
10.96
Q1
3.86
Min
0.81

KO’s Interest Coverage Ratio of 67.13 is in the upper quartile for the Beverages industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

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

Financial Strength at a Glance

SymbolCRMKO
Current Ratio (MRQ)1.121.21
Quick Ratio (MRQ)1.010.84
Debt-to-Equity Ratio (MRQ)0.141.73
Interest Coverage Ratio (TTM)19.8667.13

Growth

Revenue Growth

CRM vs. KO: 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. KO: 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

0.68%

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.

KO

2.95%

Beverages Industry

Max
7.92%
Q3
4.37%
Median
3.32%
Q1
1.98%
Min
0.00%

KO’s Dividend Yield of 2.95% is consistent with its peers in the Beverages industry, providing a dividend return that is standard for its sector.

CRM vs. KO: A comparison of their Dividend Yield (TTM) against their respective Software and Beverages industry benchmarks.

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.

KO

69.42%

Beverages Industry

Max
188.65%
Q3
104.55%
Median
72.60%
Q1
40.31%
Min
0.00%

KO’s Dividend Payout Ratio of 69.42% is within the typical range for the Beverages industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

CRM vs. KO: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Beverages industry benchmarks.

Dividend at a Glance

SymbolCRMKO
Dividend Yield (TTM)0.68%2.95%
Dividend Payout Ratio (TTM)23.50%69.42%

Valuation

Price-to-Earnings Ratio (TTM)

CRM

34.61

Software Industry

Max
145.74
Q3
94.88
Median
45.35
Q1
26.66
Min
8.80

CRM’s P/E Ratio of 34.61 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.

KO

23.51

Beverages Industry

Max
35.25
Q3
22.66
Median
17.17
Q1
13.65
Min
4.77

A P/E Ratio of 23.51 places KO in the upper quartile for the Beverages industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

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

Price-to-Sales Ratio (TTM)

CRM

5.84

Software Industry

Max
25.67
Q3
13.68
Median
8.28
Q1
4.95
Min
0.90

CRM’s P/S Ratio of 5.84 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.

KO

6.09

Beverages Industry

Max
4.06
Q3
2.24
Median
1.34
Q1
0.86
Min
0.39

With a P/S Ratio of 6.09, KO trades at a valuation that eclipses even the highest in the Beverages industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

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

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.

KO

10.59

Beverages Industry

Max
6.90
Q3
4.23
Median
2.20
Q1
1.51
Min
0.69

At 10.59, KO’s P/B Ratio is at an extreme premium to the Beverages 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. KO: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Beverages industry benchmarks.

Valuation at a Glance

SymbolCRMKO
Price-to-Earnings Ratio (TTM)34.6123.51
Price-to-Sales Ratio (TTM)5.846.09
Price-to-Book Ratio (MRQ)4.0310.59
Price-to-Free Cash Flow Ratio (TTM)18.4543.95