C3.ai vs Salesforce

C3.ai and Salesforce are two prominent players in the software industry, specifically in the realm of cloud computing and artificial intelligence. Both companies have seen significant growth in their stocks in recent years, attracting the attention of investors looking to capitalize on the expanding tech sector. While Salesforce is a well-established leader in customer relationship management software, C3.ai is quickly gaining recognition for its innovative AI solutions. This comparison of their stock performances and market potential offers valuable insights for investors seeking to diversify their portfolios in the tech industry.

C3.ai or Salesforce?

When comparing C3.ai 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 C3.ai 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. C3.ai has a dividend yield of -%, while Salesforce has a dividend yield of 0.42%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. C3.ai 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 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 C3.ai P/E ratio at -11.77 and Salesforce's P/E ratio at 49.36. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. C3.ai P/B ratio is 3.74 while Salesforce's P/B ratio is 4.82.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, C3.ai has seen a 5-year revenue growth of 1.52%, while Salesforce's is 1.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with C3.ai's ROE at -31.28% and Salesforce's ROE at 9.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $26.16 for C3.ai and $288.00 for Salesforce. Over the past year, C3.ai's prices ranged from $18.85 to $38.30, with a yearly change of 103.18%. Salesforce's prices fluctuated between $193.68 and $318.71, with a yearly change of 64.55%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.