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CRM vs. MSFT: Salesforce vs. Microsoft Stock Comparison

How do Salesforce (CRM) and Microsoft (MSFT) 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 Microsoft (MSFT) both belong to the Software industry, though CRM is classified under Application Software while MSFT falls under Systems Software.

Company profile comparison for Salesforce (CRM) and Microsoft (MSFT)
Profile ItemCRMMSFT
NameSalesforce, Inc.Microsoft Corporation Common Stock
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareSoftware
GICS Sub-IndustryApplication SoftwareSystems Software
Market Capitalization175.83 billion USD3,940.41 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateJune 23, 2004March 13, 1986
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

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

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Salesforce (CRM) and Microsoft (MSFT)
MetricCRMMSFT
Total Return (1Y)-9.04%10.30%
Total Return (3Y, Annualized)1.64%15.53%
Total Return (5Y, Annualized)-6.57%11.01%

Risk Profile

Drawdown History

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

Risk Metrics

Risk profile metrics for Salesforce (CRM) and Microsoft (MSFT)
MetricCRMMSFT
Volatility (1Y, Annualized)47.53%33.91%
Beta (5Y)1.241.03
Max Drawdown (5Y)-58.67%-37.15%
Avg. Volume (3M)11.36M22.95M

Risk-Adjusted Performance

Risk-Return Positioning

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CRM and MSFT 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 Microsoft (MSFT)
MetricCRMMSFT
Sharpe Ratio (1Y)-0.280.18
Sortino Ratio (1Y)-0.450.28

Profitability

ROE (TTM)

Both Salesforce (CRM) at 19.38% and Microsoft (MSFT) at 34.22% 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%

MSFT

Software & Services industry group

34.22%

Max
53.85%
MSFT
34.22%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%
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Salesforce (CRM) vs. Microsoft (MSFT): 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 Microsoft (MSFT) at 41.17% 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%

MSFT

Software & Services industry group

41.17%

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

Operating Margin (TTM)

Microsoft (MSFT) at 49.76% shows unusually strong operating efficiency — above its industry’s operating margin range — and Salesforce (CRM) at 21.38% also operates in the top quartile.

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%

MSFT

Software & Services industry group

49.76%

MSFT
49.76%
Max
46.89%
Q3
17.64%
Median
8.73%
Q1
-2.13%
Min
-30.45%
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Salesforce (CRM) vs. Microsoft (MSFT): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Salesforce (CRM) and Microsoft (MSFT)
MetricCRMMSFT
ROE (TTM)19.38%34.22%
ROA (TTM)5.70%14.41%
Net Margin (TTM)21.99%41.17%
Operating Margin (TTM)21.38%49.76%
Gross Margin (TTM)77.28%67.66%

Growth

Revenue Growth

Both Salesforce (CRM) at 9.58% and Microsoft (MSFT) at 17.79% 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. Microsoft (MSFT): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Salesforce (CRM) at 22.64% and Microsoft (MSFT) at 31.60% 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. Microsoft (MSFT): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Salesforce (CRM) and Microsoft (MSFT)
MetricCRMMSFT
Revenue Growth (YoY)9.58%17.79%
Revenue Growth (3Y CAGR)9.82%16.12%
EPS Growth (YoY)22.64%31.60%
EPS Growth (3Y CAGR)233.65%22.86%

Financial Strength

Current Ratio (MRQ)

Microsoft (MSFT) at 1.23 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

MSFT

Software & Services industry group

1.23

Max
5.11
Q3
2.77
Median
1.67
MSFT
1.23
Q1
1.01
Min
0.03
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Salesforce (CRM) vs. Microsoft (MSFT): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both Salesforce (CRM) at 1.10 and Microsoft (MSFT) at 0.28 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

MSFT

Software & Services industry group

0.28

Max
2.52
Q3
1.13
Median
0.40
MSFT
0.28
Q1
0.07
Min
0.00
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Salesforce (CRM) vs. Microsoft (MSFT): 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 Microsoft (MSFT)
MetricCRMMSFT
Current Ratio (MRQ)0.841.23
Debt / Equity (MRQ)1.100.28
Net Debt / EBITDA2.400.34

Dividends

Dividend Yield (TTM)

Both Salesforce (CRM) at 0.77% and Microsoft (MSFT) at 0.69% 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%

MSFT

Software & Services industry group

0.69%

MSFT
0.69%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Salesforce (CRM) vs. Microsoft (MSFT): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Both Salesforce (CRM) at 15.66% and Microsoft (MSFT) at 19.00% 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%

MSFT

Software & Services industry group

19.00%

MSFT
19.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Salesforce (CRM) vs. Microsoft (MSFT): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Salesforce (CRM) and Microsoft (MSFT)
MetricCRMMSFT
Dividend Yield (TTM)0.77%0.69%
Dividend Payout Ratio (TTM)15.66%19.00%

Valuation

P/E Ratio (TTM)

Both Salesforce (CRM) at 19.55 and Microsoft (MSFT) at 27.69 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

MSFT

Software & Services industry group

27.69

Max
112.94
Q3
60.32
Median
32.91
MSFT
27.69
Q1
18.77
Min
6.69
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Salesforce (CRM) vs. Microsoft (MSFT): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

Salesforce (CRM) at 4.00 is priced about in line with its industry on P/S ratio, while Microsoft (MSFT) at 11.37 sits in the pricier quartile — MSFT costs more per dollar of sales.

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

MSFT

Software & Services industry group

11.37

Max
17.91
MSFT
11.37
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02
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Salesforce (CRM) vs. Microsoft (MSFT): 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 Microsoft (MSFT) at 8.38 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

MSFT

Software & Services industry group

8.38

Max
16.63
Q3
8.50
MSFT
8.38
Median
4.30
Q1
1.92
Min
-3.90
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Salesforce (CRM) vs. Microsoft (MSFT): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Salesforce (CRM) and Microsoft (MSFT)
MetricCRMMSFT
P/E Ratio (TTM)19.5527.69
P/S Ratio (TTM)4.0011.37
P/B Ratio (MRQ)4.588.38
Free Cash Flow Yield (TTM)10.08%0.08%