Appian vs Salesforce Which Offers More Value?

Appian Corporation and Salesforce.com are two leading companies in the technology industry that offer cloud-based software solutions for businesses. Both companies have experienced significant growth in recent years, but there are some differences in their stock performance. Appian has a smaller market capitalization and is considered a high-growth stock, while Salesforce is a larger, more established company. Investors should carefully consider the risk and potential return of each stock before making investment decisions in the rapidly evolving technology sector.

Appian or Salesforce?

When comparing Appian and Salesforce, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Appian and Salesforce.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Appian has a dividend yield of -%, while Salesforce has a dividend yield of 0.34%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Appian reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Salesforce reports a 5-year dividend growth of 0.00% year and a payout ratio of 14.69%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Appian P/E ratio at -30.99 and Salesforce's P/E ratio at 42.75. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Appian P/B ratio is -55.14 while Salesforce's P/B ratio is 5.74.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Appian has seen a 5-year revenue growth of 1.04%, while Salesforce's is 1.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Appian's ROE at 671.59% and Salesforce's ROE at 13.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $37.92 for Appian and $347.43 for Salesforce. Over the past year, Appian's prices ranged from $26.28 to $43.33, with a yearly change of 64.88%. Salesforce's prices fluctuated between $212.00 and $369.00, with a yearly change of 74.06%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.