Avanza Bank vs Salesforce Which Is More Profitable?

Avanza Bank and Salesforce are two companies in the finance and technology sectors that have caught the attention of investors in recent years. Avanza Bank, a Swedish digital bank, has seen steady growth with its user-friendly platform and low fees. On the other hand, Salesforce, a cloud-based software company, has been a leader in the CRM market with innovative solutions for businesses. Investors may choose between these two stocks based on their risk tolerance and investment goals.

Avanza Bank or Salesforce?

When comparing Avanza Bank 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 Avanza Bank 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. Avanza Bank has a dividend yield of 5.16%, while Salesforce has a dividend yield of 0.47%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Avanza Bank reports a 5-year dividend growth of -6.51% year and a payout ratio of 85.01%. On the other hand, Salesforce reports a 5-year dividend growth of 0.00% year and a payout ratio of 13.71%.

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 Avanza Bank P/E ratio at 16.46 and Salesforce's P/E ratio at 58.49. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Avanza Bank P/B ratio is 6.15 while Salesforce's P/B ratio is 5.72.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Avanza Bank has seen a 5-year revenue growth of 3.31%, while Salesforce's is 1.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Avanza Bank's ROE at 36.91% and Salesforce's ROE at 9.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are kr220.70 for Avanza Bank and $338.77 for Salesforce. Over the past year, Avanza Bank's prices ranged from kr201.90 to kr284.80, with a yearly change of 41.06%. Salesforce's prices fluctuated between $212.00 and $348.86, with a yearly change of 64.56%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.