CRM vs. NFLX: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CRM and NFLX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CRM | NFLX |
|---|---|---|
| Company Name | Salesforce, Inc. | Netflix, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Communication Services |
| GICS Industry | Software | Entertainment |
| Market Capitalization | 244.97 billion USD | 513.42 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | June 23, 2004 | May 23, 2002 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CRM and NFLX 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 | NFLX |
|---|---|---|
| 5-Day Price Return | 3.38% | -0.81% |
| 13-Week Price Return | -4.00% | 1.97% |
| 26-Week Price Return | -16.23% | 23.64% |
| 52-Week Price Return | -1.02% | 76.69% |
| Month-to-Date Return | -0.81% | 4.21% |
| Year-to-Date Return | -23.35% | 35.56% |
| 10-Day Avg. Volume | 7.41M | 2.51M |
| 3-Month Avg. Volume | 7.37M | 3.37M |
| 3-Month Volatility | 25.26% | 25.03% |
| Beta | 1.22 | 1.61 |
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.
NFLX
42.50%
Entertainment Industry
- Max
- 42.50%
- Q3
- 22.75%
- Median
- 12.88%
- Q1
- 7.15%
- Min
- -6.84%
In the upper quartile for the Entertainment industry, NFLX’s Return on Equity of 42.50% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
NFLX
24.58%
Entertainment Industry
- Max
- 45.25%
- Q3
- 23.93%
- Median
- 14.60%
- Q1
- 4.89%
- Min
- -22.94%
A Net Profit Margin of 24.58% places NFLX in the upper quartile for the Entertainment industry, signifying strong profitability and more effective cost management than most of its peers.
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.
NFLX
29.51%
Entertainment Industry
- Max
- 46.83%
- Q3
- 28.87%
- Median
- 15.26%
- Q1
- 8.95%
- Min
- -5.53%
An Operating Profit Margin of 29.51% places NFLX in the upper quartile for the Entertainment 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 | NFLX |
|---|---|---|
| Return on Equity (TTM) | 10.43% | 42.50% |
| Return on Assets (TTM) | 6.44% | 19.42% |
| Net Profit Margin (TTM) | 16.08% | 24.58% |
| Operating Profit Margin (TTM) | 18.10% | 29.51% |
| Gross Profit Margin (TTM) | 77.34% | 48.49% |
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.
NFLX
1.34
Entertainment Industry
- Max
- 6.80
- Q3
- 3.77
- Median
- 1.87
- Q1
- 0.86
- Min
- 0.39
NFLX’s Current Ratio of 1.34 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.
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.
NFLX
0.58
Entertainment Industry
- Max
- 1.65
- Q3
- 0.71
- Median
- 0.14
- Q1
- 0.04
- Min
- 0.00
NFLX’s Debt-to-Equity Ratio of 0.58 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
NFLX
23.05
Entertainment Industry
- Max
- 62.11
- Q3
- 31.19
- Median
- 7.50
- Q1
- 2.02
- Min
- -6.33
NFLX’s Interest Coverage Ratio of 23.05 is positioned comfortably within the norm for the Entertainment industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | CRM | NFLX |
|---|---|---|
| Current Ratio (MRQ) | 1.07 | 1.34 |
| Quick Ratio (MRQ) | 0.98 | 1.34 |
| Debt-to-Equity Ratio (MRQ) | 0.14 | 0.58 |
| Interest Coverage Ratio (TTM) | 19.86 | 23.05 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CRM
0.66%
Software Industry
- Max
- 0.08%
- Q3
- 0.03%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
CRM’s Dividend Yield of 0.66% 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.
NFLX
0.00%
Entertainment Industry
- Max
- 2.54%
- Q3
- 1.29%
- Median
- 0.61%
- Q1
- 0.00%
- Min
- 0.00%
NFLX 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.
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.
NFLX
0.00%
Entertainment Industry
- Max
- 82.30%
- Q3
- 45.76%
- Median
- 29.16%
- Q1
- 0.00%
- Min
- 0.00%
NFLX 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.
Dividend at a Glance
| Symbol | CRM | NFLX |
|---|---|---|
| Dividend Yield (TTM) | 0.66% | 0.00% |
| Dividend Payout Ratio (TTM) | 25.00% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
CRM
37.90
Software Industry
- Max
- 149.35
- Q3
- 100.21
- Median
- 47.97
- Q1
- 26.77
- Min
- 11.68
CRM’s P/E Ratio of 37.90 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.
NFLX
49.96
Entertainment Industry
- Max
- 53.51
- Q3
- 45.31
- Median
- 33.16
- Q1
- 18.21
- Min
- 3.89
A P/E Ratio of 49.96 places NFLX in the upper quartile for the Entertainment industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
CRM
6.09
Software Industry
- Max
- 25.24
- Q3
- 13.52
- Median
- 8.15
- Q1
- 4.87
- Min
- 0.98
CRM’s P/S Ratio of 6.09 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.
NFLX
12.28
Entertainment Industry
- Max
- 12.81
- Q3
- 7.20
- Median
- 4.68
- Q1
- 3.32
- Min
- 0.79
NFLX’s P/S Ratio of 12.28 is in the upper echelon for the Entertainment industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
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.
NFLX
22.84
Entertainment Industry
- Max
- 17.11
- Q3
- 8.38
- Median
- 5.24
- Q1
- 2.18
- Min
- 0.67
At 22.84, NFLX’s P/B Ratio is at an extreme premium to the Entertainment 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.
Valuation at a Glance
| Symbol | CRM | NFLX |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 37.90 | 49.96 |
| Price-to-Sales Ratio (TTM) | 6.09 | 12.28 |
| Price-to-Book Ratio (MRQ) | 4.25 | 22.84 |
| Price-to-Free Cash Flow Ratio (TTM) | 18.59 | 60.23 |